PowerPoint Presentation

26 September 2013Craig LewisExecutive DirectorClean Coalition650-796-2353 mobilecraig@clean-coalition.org

Buildings of 2030Vision driving Demonstrations, Certifications, Standards, and Codes

Making Clean Local Energy Accessible Now1(ac_1, 15Sept2011)Clean Coalition Mission and AdvisorsBoard of AdvisorsJeff AndersonCo-founder and Former ED, Clean Economy NetworkJosh BeckerGeneral Partner and Co-founder, New Cycle Capital

Pat BurtCEO, Palo Alto Tech Group; Councilman & Former Mayor, City of Palo Alto

Jeff BrothersCEO, Sol OrchardJeffrey ByronVice Chairman National Board of Directors, Cleantech Open; Former Commissioner, CECRick DeGoliaSenior Business Advisor, InVisM, Inc.John GeesmanFormer Commissioner, CEC

Eric GimonIndependent Energy ExpertPatricia GlazaPrincipal, Arsenal Venture PartnersDan KammenDirector of the Renewable and Appropriate Energy Laboratory at UC Berkeley; Former Chief Technical Specialist for RE & EE, World BankFred KeeleyTreasurer, Santa Cruz County, and Former Speaker pro Tempore of the California State AssemblyFelix KramerFounder, California Cars InitiativeAmory B. LovinsChairman and Chief Scientist, Rocky Mountain InstituteL. Hunter LovinsPresident, Natural Capitalism SolutionsRamamoorthy RameshFounding Director, DOE SunShot InitiativeGovernor Bill RitterDirector, Colorado State Universitys Center for the New Energy Economy, and Former Colorado GovernorTerry TamminenFormer Secretary of the California EPA and Special Advisor to CA Governor Arnold SchwarzeneggerJim WeldonTechnology ExecutiveR. James WoolseyChairman, Foundation for the Defense of Democracies; Former Director of Central Intelligence (1993-1995)Kurt YeagerVice Chairman, Galvin Electricity Initiative; Former CEO, Electric Power Research InstituteMissionTo accelerate the transition to local energy systems through innovative policies and programs that deliver cost-effective renewable energy, strengthen local economies, foster environmental sustainability, and provide energy resilienceMaking Clean Local Energy Accessible Now #(Dec2012)

2Clean Coalition Vision = Clean Local Energy

Making Clean Local Energy Accessible Now #(cl_04a, 12 Jan 2012)To lay the groundwork, this slide represents the ultimate Clean Coalition vision.This is what a smart energy future looks like.The key components will be:Distributed Generation + Demand Response + Energy Storage + Electrical Vehicle + overall Monitoring Communications and Controls or MC2 for short.

The Clean Coalition envisions a future where these components are no longer treated as independent silos. These components will work seamlessly together, using information technology to locally control, create and balance supply and demand of electricity.

What this slide also shows is the huge market opportunity for the transition. There is a $6 trillion dollar energy market AND it will transition to a smart energy future and there are three key drivers behind that:Economic sensibilityEnergy securityEnvironmental sustainability

Regardless of your political affiliation, one of these drivers or a combination there of, will take us to this future.

The only question is how painful will this transition be, how fast will it happen, and whos going to win all the economic benefits.3Clean Coalition Overarching ObjectivesFrom 2020 onward, at least 50% of all new electricity generation in the United States will be from local sources. Locally generated electricity does not travel over high voltage transmission lines to get from the location it is generated to the area it is consumed.

From 2020 onward, at least 80% of all new electricity generation in the United States will be from renewable sources.

By 2020, policies and programs are well established for ensuring successful fulfillment of the other two objectives. Policies reflect the full value of local renewable energy.Programs prove the superiority of local energy systems in terms of economics, environment, and resilience. Making Clean Local Energy Accessible Now #(04_cl, 20 Dec 2012)4Zero Net Energy is Key Vision-driver for Buildings

Making Clean Local Energy Accessible Now #Vision drives Demos, Certs, Standards & Codes

Making Clean Local Energy Accessible Now #Buildings of 2030 Must Fit with Cities of Future

Making Clean Local Energy Accessible Now #(cl_04a, 12 Jan 2012)To lay the groundwork, this slide represents the ultimate Clean Coalition vision.This is what a smart energy future looks like.The key components will be:Distributed Generation + Demand Response + Energy Storage + Electrical Vehicle + overall Monitoring Communications and Controls or MC2 for short.

The Clean Coalition envisions a future where these components are no longer treated as independent silos. These components will work seamlessly together, using information technology to locally control, create and balance supply and demand of electricity.

What this slide also shows is the huge market opportunity for the transition. There is a $6 trillion dollar energy market AND it will transition to a smart energy future and there are three key drivers behind that:Economic sensibilityEnergy securityEnvironmental sustainability

Regardless of your political affiliation, one of these drivers or a combination there of, will take us to this future.

The only question is how painful will this transition be, how fast will it happen, and whos going to win all the economic benefits.7Expect EV Chargers Everywhere

EVs provide the CLEAN Bridge between Energy, Buildings, Cities and TransportationMaking Clean Local Energy Accessible Now #(sw 2, 19 Jan 2012)8

Plan for Renewables Everywhere within D-grid

Retail DGServes Onsite LoadsCentral Generation Serves Remote LoadsDistribution GridTransmission GridProject SizeWholesale DGServes Local LoadsBehind the MeterMaking Clean Local Energy Accessible Now #(jf 01, 30 March 2012)

9WDG is Key Market Segment with Superior ValueThe most cost-effective solar is large WDG, not central station due to significant hidden T&D costsDistribution GridT-GridPV Project size and type100kW roof500kW roof1 MW roof1 MW ground5 MW ground50 MW groundRequired PPA Rate1615139-118-107-9 T&D costs000002-4 Ratepayer cost per kWh1615139-118-109-13 Sources: CAISO, CEC, and Clean Coalition, Nov2012; see full original analysis from Jul2011 at www.clean-coalition.org/studies Total Ratepayer Cost of SolarMaking Clean Local Energy Accessible Now #10WDG Delivers Scale & Cost-Effectiveness FastSolar Markets: Germany vs California (RPS + CSI + other)Germany has deployed 12 times more solar than California in the last decade despite Californias 70% better solar resource!!!Sources: CPUC, CEC, SEIA and German equivalents.Cumulative MWMaking Clean Local Energy Accessible Now #Germany is the best example we currently have to show the efficacy of CLEAN Programs and the WDG market. If there is any confusion, Germany is in green and Californiaknown as the leading market it the U.S.is in red. It is astonishing that Germany is adding 11 times more solar than California even though California has a 70% better resource. Rooftop solar in Germanytodayis priced at the California-equivalent of7-10 cents/kWh, which would be the most cost-effective resource deployed in California.

Ground-based solar projects typically generate about 25% more kWh/W than rooftop projects, because they use tracking, which allows the panels to follow the sun throughout the day. The net result is that ground-based projects are generally about 20% more cost-effective than rooftop projects. The difference between the 25% and the 20% is that the O&M costs for ground-based projects are a bit higher due to their moving parts.

(07_gp, 23 Sep 2013)11German Solar Pricing Translates to 5 cents/kWhProject SizeEuros/kWhUSD/kWhCalifornia Effective Rate $/kWhUnder 10 kW0.1450.19030.076210 kW to 40 kW0.1380.18050.072240.1 kW to 1 MW0.1230.1610.06441.1 MW to 10 MW0.1010.13170.0527Conversion rate for Euros to Dollars is 1:$1.309Californias effective rate is reduced 40% due to tax incentives and then an additional 33% due to the superior solar resourceSource: http://www.wind-works.org/cms/index.php?id=92, 10 September 2013Replicating German scale and efficiencies would yield rooftop solar at only between 5 and 7 cents/kWh to California ratepayersMaking Clean Local Energy Accessible Now #Critics of Germanys CLEAN Program tend to say that they are paying too much for renewable energy generation, but this chart shows that using the appropriate conversion they are paying less for solar than we pay for electricity almost anywhere in the U.S. This conversion uses the U.S. tax incentives and solar resource.12German Solar Capacity is Small WDG (Rooftops)Source: Paul Gipe, March 2011Germanys solar deployments are almost entirely sub-2 MW projects on built-environments and interconnected to the distribution grid (not behind-the-meter)22.5%26%23.25%9.25%19%Making Clean Local Energy Accessible Now #(cl_04a, 12 Jan 2012)

US has Far Better Solar Resource than Germany

Making Clean Local Energy Accessible Now #Deployment Volume Drives Learning Curves

Si learning curveSolar pricing is reduced by 20% for every doubling of deployed volumeNew technology learning curveEfficiency innovationMaking Clean Local Energy Accessible Now #15

DG+IG Initiative = Proving Feasibility of High DGWork with five utilities across the US to deploy a DG+IG demonstration project at each by yearend-2015Prove viability of Distributed Generation (DG) providing at least 25% of total electric energy consumed within a single substation grid areaIntegrate Intelligent Grid (IG) solutions to ensure that grid reliability is maintained or improved from original levelIG solutions include diversity and Energy Storage for sure, and potentially, advanced inverters, forecasting & curtailment, and/or Demand ResponseMaking Clean Local Energy Accessible Now #(cl, 18 Dec 2012)

16Benefits of DG+IGPower Quality, Reliability & Resilience benefitsIncreased customer satisfactionImproved equipment longevitySustained vital services in otherwise complete blackout scenariosAvoided transmission & central generation vulnerabilitiesEconomic benefitsSignificant private-sector investmentSubstantial local job creationFixed electricity prices for 20+ yearsLocalized energy spendingAvoided inefficiencies of central generation & transmissionEnvironmental benefitsAvoiding dirty power generation, including nasty peaker plants that are often sited in underserved communitiesUtilizing built-environments and disturbed lands for generation projectsPreserving pristine environments from transmission lines and other infrastructure

Making Clean Local Energy Accessible Now #Hunters Point = DG+IG Showcase

BVHP has a long history of environmental degradation.Houses one third of San Franciscos hazardous waste sites.Was downwind from California's dirtiest peaker power plant until community activism forced its closure in 2010. 20% of BVHP children suffer from asthma, and other chronic illnesses, 4x CA average BVHP has one of the highest poverty rates in San Francisco, with 30% of families earning less that $10,000 per year, and a median household income of $29,640 annually, as compared to $65,000 for white San Franciscans and a $55,221 average citywide.An overwhelming 72% of the African Americans in BVHP have incomes below the federal poverty level.Sources: Hunters Point Family and Grid Alternatives. Making Clean Local Energy Accessible Now # Comparison of New Construction & Retrofit

Hunters Point Substation serves Major Redevelopment Area & Continuing Urban Neighborhoods (30% & 70% of projected load respectively)Making Clean Local Energy Accessible Now #01_sa, 14Nov2012

19Scope of Complete Hunters Point DG+IG ProjectCoordinating collaborative partnersProviding redevelopment plans (SF Agencies)Providing full set of Distribution Grid (D-grid) details and loads (PG&E)Identifying prospective sites for Distributed Generation (DG)Establishing Modeling Platform Simulating existing D-grid scenario and DG+IG iterations for opitimized recommendationsDefining Intelligent Grid (IG) performance requirementsIdentifying prospective sites for IG SolutionsAssessing DG+IG benefits in terms of economics, environment, and grid efficiency, reliability & resilienceDesigning interconnection and procurement processes and procedures to stage for DG+IG deploymentsMaking Clean Local Energy Accessible Now #(04_cl, 20 Dec 2012)20

Replacing SONGS with DG+IGHuntington Beach 290 MVars(minus line losses = 261 MVars)vs570 MW of local solar with advanced inverters, oversized by 10% set at 0.9 Power Factor = 261 MVArsLocal solar configured with advanced inverters alone can replace SONGSMaking Clean Local Energy Accessible Now #SONGS provided a large amount of reactive power for voltage regulation in Southern California.CAISO produced a good duct tape solution for this summer Huntington Beach (which provides 290 MVArs of reactive power), and 4 strategically located capacitors that provide 80 MVArs each. Local solar PV paired with advanced inverters can cost-effectively both reduce load on transmission lines and provide large amounts of reactive power 247/365 without reducing the amount of real power it provides while the sun shines. By oversizing the inverters by 10% at 0.9 power factor, the solar panels can produce 63% of the PV systems nameplate capacity as reactive power without reducing real power output. At night, the inverters can act like capacitors, drawing real power from the grid and converting it to reactive power.For example, 570 MW capacity of PV with advanced inverters oversized by 10% at 0.9 power factor could provide the same amount of reactive power as the Huntington Beach synchronous condensers. 21PV Potential of Top 25 Roofs in LA is Over 75 MW

100+ GW of Built-Environment Solar Potential in California vs 60 GW of Peak LoadMaking Clean Local Energy Accessible Now #22Back-Up SlidesBack-Up SlidesMaking Clean Local Energy Accessible Now #(sw 2, 19 Jan 2012)23Renewables are Reliable

CountryPercent of electrical generation in 2007 from non-hydro renewables2007 SAIDI outage duration (minutes)2007 SAIFI outage frequency (number of outage events) Denmark29.4%230.5Germany12%240.5United States2.8%2401.5Sources: Galvin Electricity Initiative, Electric Reliability: Problems, Progress and Policy Solutions, February 2011U.S. Energy Information Administration, International Energy Statistics, 2011 Making Clean Local Energy Accessible Now #Relevant Content:Germany and other European countries have already shown that modern power systems are both technically possible and economically viable. Investing in an intelligent grid that integrates significant amounts of clean local energy enhances system reliability -- minimizing economic losses from outages. The German power system, which incorporates enough rooftop solar to meet half the country's midday energy needs, set a global reliability record in 2011 with only 15.31 minutes of downtime. What's even more impressive is that Germany -- the world's fourth largest economy and home to a heavy industrial base -- demands enormous amounts of reliable power, and distributed renewables have delivered. Similarly, renewables provide more than 40 percent of Denmark's electrical generation, and their grid is markedly more reliable than in the United States. On average, the U.S. has three times as many outages as Denmark with each outage lasting fourteen times as long. In other words, the U.S. spends about 50 times as long in the dark even though Denmark gets 40 percent of its power from renewables.

Notes:SAIDI = system average interruption duration indexSAIFI = system average interruption frequency index

Also, these 2007 numbers are from the CEER 4th annual benchmarking report published in 2010. The 5th annual report from 2011 (available at http://www.energy-regulators.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/CEER_PAPERS/Electricity/Tab/CEER_Benchmarking_Report.pdf) has updated numbers that are slightly lower for Germany and Denmark; however no U.S. numbers are provided. Thus, I kept everything consistent using the 4th annual report.

Source: Galvin Electricity Initiative, Electric Reliability: Problems, Progress and Policy Solutions. Seehttp://www.galvinpower.org/sites/default/files/Electricity_Reliability_031611.pdf.

U.S. Energy Information Administration, International Energy Statistics, 1980-2011 http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=2&pid=alltypes&aid=12&cid=DA,GM,US,&syid=1980&eyid=2007&unit=BKWH

24DG+IG Keeps Power in Balance

DR, ES shifts loadDR, ES shifts loadES, Auto-DR, curtail for steep ramp Making Clean Local Energy Accessible Now #This Duck Chart was created by CAISO to show that the shape of the net load curve begins to shift dramatically in 2015 due to increasing solar generation. Chart shows a typical March day, with each line representing a different year, from 2012 2020.The bottom x-axis represents time of day, starting at midnight and ending at midnight.The left y-axis shows net load in MW, meaning load minus wind and solar generation.

The chart shows two major issues for California:Supply may exceed demand in the afternoons of certain months beginning in 2018.Increasing ramping each year through 2020.

DG+IG is ideal for keeping power in balance from a system wide perspectiveDR and ES can shift demand away from the early evening hours, flattening the head of the duck, and increase demand during the afternoon hours, lifting the belly of the duck.Generally, DR can reduce or shift load away from peak hours Automated demand response and ES are extremely fast-acting resources that can keep power in balance during steep ramp periods of the day.When supply is forecasted to be greater than demand, system operators can also curtail output of variable generators.

25Replace SONGS Energy Storage Potential

Targets proposed by CPUC include 745 MW storage in Southern CaliforniaMaking Clean Local Energy Accessible Now #CPUC Commissioner Peterman has proposed targets of over 1.3 GW of new energy storage by 2020, including 745 MW in Southern California.150 MW in Southern California by 2016.

26DG+IG Projects Begin with Grid Modeling & Simulation

Making Clean Local Energy Accessible Now #(cl, Aug2012)

27DG+IG Policy Innovations RequiredIntegrate Grid PlanningTransparent and public T&D planning processes Proactively evaluate DG+IG alternatives to new transmission investmentsNecessary to meet goals re: renewables, EVs, costs, local job creation, resilience

Implement Full Cost & Value AccountingInvestments should reflect the full spectrum of rate impacts, economic growth, health, safety, and environmental sustainabilityPrevent bias against DG+IG (e.g. hidden transmission costs)

Monetize DG+IG Grid Services Establishing markets that compensate at full value of grid services is fundamental to optimizing value for ratepayers

Prioritize DG+IG Development in High Value LocationsIdentify preferred locations on the grid based on transparent cost & value criteriaSet Local Portfolio Standard targets

Update Technical Standards: Update national technical standards (IEEE/ UL) to allow DG+IG to provide grid services to the fullest potential Making Clean Local Energy Accessible Now #28