Unleashing local dispatchable solar
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The document discusses the Clean Coalition's efforts to enhance local solar energy accessibility in San Diego through a proposed Feed-In Tariff (FIT) aimed at achieving 25% local renewables. A solar siting survey identified over 490 MW of solar potential, primarily on built environments like parking lots and rooftops, which could double with lower project size limits. The FIT is designed to streamline project development, encourage significant renewable energy deployment, and ensure energy storage is used effectively for dispatchable energy generation.
Unleashing local dispatchable solar
- 1. Making Clean Local Energy Accessible Now Unleashing Local Dispatchable Solar San Diego Energy District 2020 Virtual Symposium Craig Lewis Executive Director 650-796-2353 mobile craig@clean-coalition.org 5 June 2020
- 2. 2Making Clean Local Energy Accessible Now Local solar constraints & assumptions Solar siting opportunities in any urban & suburban areas will predominantly be on built-environments like rooftops, parking lots, and parking structures Planning will be greatly informed by surveying associated solar siting potential. Hence, the Clean Coalition conducted a Solar Siting Survey (SSS) for the City of San Diego. Achieving 25% local renewables will require unleashing Wholesale Distributed Generation (WDG) Only proven approach is a Feed-In Tariff (FIT). Hence, the Clean Coalition designed a FIT for the City of San Diego. Achieving renewables-driven resilience will require high penetrations of local renewables that are dispatchable Hence, the FIT includes a mechanism for ensuring that energy storage is deployed in a manner that makes renewable energy available whenever needed, not just when the sun is shining or wind is blowing etc.
- 3. 3Making Clean Local Energy Accessible Now WDG provides the gradient path to success Wholesale Distributed Generation (WDG) is the market segment that is primed to truly unleash local solar.
- 4. Making Clean Local Energy Accessible Now 4 FITs address the WDG market segment Distribution Grid Project Size Behind the Meter Central Generation Serves Remote Loads Wholesale DG Serves Local Loads Retail DG Serves Onsite Loads Transmission Grid 5 kW 50+ MW 500 kW
- 5. 5Making Clean Local Energy Accessible Now FITs proliferated WDG solar in Germany Solar Markets: Germany vs California (2002-2012) Germany deployed over 10 times more solar than California in the decade from 2002 — despite California having 70% better solar resource. Sources: CPUC, CEC, SEIA and German equivalents. CumulativeMW - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2002 2006 2007 2008 2009 2010 2011 2012 California Germany
- 6. 6Making Clean Local Energy Accessible Now Solar Siting Surveys (SSS) Solar Siting Survey (SSS) for City of San Diego
- 7. 7Making Clean Local Energy Accessible Now SSS methodology SSS is performed manually through a multi-step process: Set a minimum project size for the SSS. Scan the target region via Google Earth Pro for prospective solar sites on built-environments (rooftops, parking lots, and parking structures) that meet the minimum project size. Measure the usable surface area and eliminate obvious portions that are not viable due to setbacks, obstructions, and/or shading. Assess the probable solar generation density against the minimum project size threshold (1 MWac for this SSS). Where sensible, aggregate campus-type structures that are likely to have common ownership into a single site (examples being parking lots and rooftops in a shopping center, industrial park, or school campus). Capture the details, including the interconnection hosting capacity. Map the results.
- 8. 8Making Clean Local Energy Accessible Now Summary of SD SSS findings (all figures in AC) Over 490 MW of technical solar siting potential was found on built environments that can support projects sized at least 1 MW. 75% of the potential is in parking lots and parking structures. Extrapolations to lower minimum project sizes: Total potential doubles to 1 GW if project limit set at 500 kW. Total potential doubles again to 2 GW if project limit set at 100 kW.
- 9. 9Making Clean Local Energy Accessible Now Overview of SD SSS sites Over 490 MW of Solar Siting Potential identified • Sites >1 MW • On built-environments
- 10. 10Making Clean Local Energy Accessible Now Sears Outlet
- 11. 11Making Clean Local Energy Accessible Now Sears Outlet
- 12. 12Making Clean Local Energy Accessible Now Sears Outlet
- 13. 13Making Clean Local Energy Accessible Now SD feeder map
- 14. 14Making Clean Local Energy Accessible Now SD substation & feeder hosting capacities
- 15. 15Making Clean Local Energy Accessible Now Clean Coalition FIT design for The City of San Diego Feed-In Tariff for City of San Diego
- 16. 16Making Clean Local Energy Accessible Now Why FITs are the world-class solution FITs are unparalleled in unleashing cost-effective, commercial-scale renewables
- 17. 17Making Clean Local Energy Accessible Now FITs keep things simple Standardized and guaranteed contract between the solar or solar+storage facility and the Load Serving Entity (LSE) with a long-term, predefined rate paid for energy produced FIT project 100% of the renewable energy generation is purchased by SDGE at FIT rate 100% of customer energy usage is purchased based on a normal retail rate Utility customer
- 18. 18Making Clean Local Energy Accessible Now FITs efficiently open the WDG market segment FITs offer clear guidance to the market through predefined terms and prices, thereby allowing project developers to qualify their planned projects before undertaking significant investment in siting, interconnection, etc. A clear, predictable purchase offer — and a simple, standardized contract for use between a LSE and energy generators — streamline the development of clean local energy. Not only does this approach nearly eliminate speculative projects, but it also drives down renewable energy development costs. FITs secure projects that will be built immediately and proven to deliver power within 12 to 18 months. Avoid limitations associated with Net Energy Metering (NEM). Avoid issues associated with solicitation processes.
- 19. 19Making Clean Local Energy Accessible Now Direct Relief is a Solar Microgrid showcase 320 kW PV 676 kWh Li 600 kW diesel generator with 4,000 gallon tank • Resilience is required: • 320 kW PV • 676 kWh Storage • 600 kW diesel generator • 4000 gallons of diesel fuel • PV annual generation designed to cover annual consumption. • Storage designed to time- shift the generation to more valuable times, and provide Resilience. • Genset provides “back-up to the back-up”. • Direct Relief Microgrid requirement is that the critical loads are operational indefinitely, even through local disasters that causes long-term interruptions to normal electricity service.
- 20. 20Making Clean Local Energy Accessible Now NEM limitations create a Stranded Opportunity Microgrid only serves Direct Relief needs: • 70% of roof and 100% of massive parking area solar potential is unused. • Additional storage not able to be considered due to policy prohibitions around exporting energy from a battery to the grid – even though the energy is 100% stored solar. Ready to do way more: • 1,133 kW in total solar siting potential, 427 kW more rooftop and 386 kW in parking lots. • Existing switch gear is already sized for the expansion and is just awaiting the policy innovation!
- 21. 21Making Clean Local Energy Accessible Now City of San Diego FIT program size A 50 MW FIT will provide roughly 1.1% of the City of San Diego’s annual electric load Annual production of 1,900 kWh/kWac of FIT capacity is based on solar resource analysis for the City of San Diego, as we expect PV to be the dominant FIT technology
- 22. 22Making Clean Local Energy Accessible Now SD FIT Market Responsive Pricing (MRP) Once baseline pricing is set for the initial FIT tranche, MRP governs baseline pricing, which can never exceed a universal maximum of 11¢/kWh.
- 23. 23Making Clean Local Energy Accessible Now City of San Diego FIT pricing adders The concept of pricing adders is simple A Load Serving Entity (LSE) identifies the characteristics it would like to see in its FIT projects and then creates adders to its baseline FIT price to incentivize projects with these characteristics. The Clean Coalition recommends the LSE implement four pricing adders: Built-environment adder at 20% Rooftops, parking lots, parking structures, etc. Small project adder at either 10% or 20% 10% for projects larger than 100 kW and less than or equal to 350 kW. 20% for projects less than or equal to 100 kW. Community benefit adder at 5% Tax-exempt and/or within Communities of Concern. Dispatchability adder at 15¢/kWh Eligible for guaranteed daily dispatchable renewable energy at 2-4 hours of nameplate renewable energy FIT project.
- 24. 24Making Clean Local Energy Accessible Now Dispatchable Energy Capacity Services (DECS) $ DECS contracted energy capacity (kWh) kWh Owner Reserve Owner Reserve • LSE contracts for dispatchable daily cycling of energy capacity (kWh), at a fixed $/kWh fee, used or not. • LSE optimizes fully flexible energy capacity, dispatching for any purpose, which could be based on time of day, day of week, season, event, and/or other optimizations over the DECS contract period. • Initial DECS contracts are priced at Cost of Service (COS) while subsequent DECS contract pricing is adjusted for market response. • Owner retains discretion over any capacity not under DECS contract. • Owner earns guaranteed $/kWh payments for the DECS-contracted energy capacity. • Owner retains discretion over any capacity not under DECS contract. Load Serving Entity (LSE) Storage Asset Owner 1. Net Cost of Energy (NCOE). 2. Capital expenditure ("capex"). 3. Operating expenditure ("opex"). Three COS components: DECS offers a single bankable revenue stream for energy storage owners and a fully flexible & dispatchable energy source for LSEs available daily.
- 25. 25Making Clean Local Energy Accessible Now 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 Tier 1 = Critical load, ~10% of total load Percentageoftotalload Percentage of time Tier 3 = Discretionary load, ~75% of total load Tier 1 = Critical, life-sustaining load, ~10% of total load Tier 2 = Priority load, ~15% of total load Percentage of time online for Tier 1, 2, and 3 loads for net zero solar + 2 hours of storage microgrid at UCSB
- 26. 26Making Clean Local Energy Accessible Now BESS energy capacity allocations Contracted BESS energy capacity (kWh) that must be available for daily cycling over the contract duration for achieving specified economic & resilience performance. Owner reserve SOCr Owner reserve Top owner reserve is often in place to absorb BESS degradation over time, while still delivering the contracted daily cycling energy capacity. Bottom owner reserve is often required to meet BESS warranty requirements that are imposed by BESS vendors. SOCr = the minimum state-of-charge (SOC) that is reserved for provisioning resilience. The SOCr can be dynamic and/or resized to between 0% and 100% of the contracted BESS energy capacity. A lower SOCr facilitates BESS operations that optimize daily economic performance while a larger SOCr facilitates the provisioning of higher resilience.