Clean Power Alliance 2020 Clean Energy Request for Offers ......CLEAN POWER ALLIANCE RFO Overview...

Clean Power Alliance

2020 Clean Energy Request for

Offers (RFO) Webinar

October 28, 2020

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CLEAN POWER ALLIANCE

Agenda

● Introduction

● CPA and RFO Overview

● RFO Timeline and Process

● RFO Evaluation Process

● Wrap Up and Q&A

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Introductions


Natasha Keefer

Director Power Planning

& Procurement

Ascend Analytics

Brent Nelson

Manager of Forecasting and

Market Fundamentals

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Erik Nielsen

Structured Contracts

Manager


Alex Caryotakis

Power Procurement

Analyst

Ascend Analytics

Anthony Boukarim

Senior Energy

Analyst


Ascend Analytics’ Role

● Ascend Analytics will be supporting CPA’s initiative by

administering and organizing the RFO and analyzing project

economic value

● Ascend Analytics offers the following:

○ Standardizing and collecting all submitted data

○ Using advanced simulation and analytics software to model

projects and ensure accurate and consistent project

evaluation

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Housekeeping

● Audio – Disabled but please keep phone on mute

○ Questions during the webinar must be submitted via the text chat

window during the webinar. Questions will be answered in the time

available at the end of the presentation

■ Additional questions should be submitted through the RFO

website (https://www.ascendanalytics.com/cpa-clean-energy-rfo)

■ All submitted questions will be answered in the Q&A responses

posted to the RFO website on Nov. 10

● Video – Disabled

● This presentation will be recorded and available after the call

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https://www.ascendanalytics.com/cpa-clean-energy-rfo


Agenda

● Introduction




● Wrap Up and Q&A

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Who is CPA

● A Joint Powers Authority, CPA has 32 member jurisdictions within

Los Angeles and Ventura counties

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● CPA launched service

to customers in

February 2018

● CPA serves approx. 1

million customer

accounts and is the

largest CCA in the state


RFO Overview and Goals

● Goal: Solicit and evaluate offers for renewable energy to meet CPA’s energy

procurement obligations, its environmental objectives, and to offer its

customers cost-competitive, clean energy options

○ CPA targets procuring 1,500-2,000 GWh of annual generation from a

diverse set of clean resources

● Projects eligible to participate are:

○ Renewable Energy (RPS-eligible and RPS +Storage)

○ Standalone Storage

● Eligible projects must have a commercial online date (COD) no later than

December 31, 2025; however CPA has a preference for projects with CODs

no later than December 31, 2023

● All bids must be compliant with RFO specifications

● CPA intends to collect all relevant energy, environmental attributes, resource

adequacy, and ancillary services benefits from the projects, as applicable

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● Capacity 5 - 100 MW

● Minimum 4-hour duration

● New or existing

● PCC1 eligible

● Capacity 5 - 300 MW

● Generation or generation + storage

● Also accepting firm + shaped offers

● New or existing

Project Types

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Renewable Energy Standalone Storage

Storage Component (either Project Type)

● Must be either 4-hour storage duration or 8+ hours

CLEAN POWER ALLIANCE 10

Location Within or outside of California, with deliverability to the CAISO grid.

Products

RPS-eligible generation or RPS-eligible generation plus storage. CPA is also

interested in firm and shaped RPS-energy products.

Note: for RPS-eligible generation plus storage, CPA’s preference for resources

is co-located (two separate resource IDs). Bidders should highlight in the

project narrative if their project is hybrid (single resource ID for both generation

and storage).

Price

PPA Price: Fixed $/MWh with zero percent (0%) annual escalator. Prices

must be offered at the project Pnode.

Bidders may include additional settlement points only in the project narrative.

Examples of these variations are:

• SCE Default Load Aggregation Point (DLAP)

• CAISO liquid trading hub (e.g. SP15, NP15, ZP26, etc.)

Storage Capacity Cost: Fixed $/kW-month with zero percent (0%) annual

escalator.

Note: Actual payments to bidder will be consistent with the terms of the PPA

Agreements for each project.

Term Fifteen (15) years.

Project Eligibility – Renewable Energy Contracts


Project Eligibility – Renewable Energy Contracts

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Scheduling Coordinator

For generation only projects, Seller shall be the scheduling coordinator (SC). For any

firm and shaped products, Seller shall be the scheduling coordinator (SC). For all

other generation plus storage projects, CPA shall be the scheduling coordinator (SC).

OwnershipAll projects will be owned by the Bidder, with CPA contracting the output of the

resource for the duration of the 15-year term.

Interconnection All projects must have completed a Phase I interconnection study.

Installed Capacity (MW)

Nameplate capacity 5 MW - 300 MW (not inclusive of storage capacity). Storage

capacity can be up to 80% of the generation nameplate capacity. Bidders should

size their storage capacity optimally from both economic and technical aspects (while

abiding by the 80% limit).

Operation

Storage components of generation plus storage resources will be valued with charging

only coming from the renewable generation, but projects should have the capability for

and expectation of grid charging after the ITC recapture period.

Storage resources are expected to operate at approximately 365 cycles/year and

a maximum of 2 cycles/day.

Station Use Seller will be responsible for Station Use.

Seller Security

Requirements

$60/kW of Contract Capacity for generation resources and $90/kW of Contract

Capacity for storage resources.

Storage Availability Storage resource must be available for a minimum of 98% of hours annually.


Location Within or outside of California, with deliverability to the CAISO grid.

Products

Standalone energy storage products capable of offering Energy, Resource

Adequacy (RA), and Ancillary Services.

RA-only offers are not allowed.

Price

Fixed $/kW-month with zero percent (0%) annual escalator.

Note: Actual payments to bidder will be consistent with the terms of the CPA

Energy Storage Agreement document.

Term Fifteen (15) years.

Scheduling

CoordinatorCPA shall be the scheduling coordinator (SC) for all projects.

OwnershipAll projects will be owned by the Bidder, with CPA contracting the output of the

energy storage facility for the duration of the 15-year term.

Interconnection All projects must have completed a Phase I interconnection study.

Storage Maintenance

Seller is expected to maintain operation of the facility at full nameplate capacity

throughout the 15-year term. Any maintenance or replacement required to

maintain nameplate operation of the facility is the responsibility of the Bidder.

Project Eligibility – Standalone Storage


Project Eligibility – Standalone Storage

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OperationStorage resources are expected to operate approximately 365

cycles/year and a maximum of 2 cycles/day.

Operational Efficiency

The efficiency rate of the storage resource must reflect actual efficiency of

the storage facility, measured at the storage facility meter, per year over the

15-year term.

Storage AvailabilityStorage resource must be available for a minimum of 98% of hours

annually.

Daily Dispatch Limits Unlimited daily dispatches.

Station Use Seller will be responsible for Station Use.

Seller Security

Requirements$90/kW of Contract Capacity.

Additional guidance is provided in detail in the RFO Protocol and CPA Form Agreements


Number of Offers Submitted – Renewable Energy

Projects

● Bidders must submit one primary offer per unique facility. This offer

should be the largest and most competitive

● Bidders offering RPS + Storage with a 4-hour duration storage component

may submit one additional offer per unique facility if the additional offer is

for storage duration ≥ 8 hours

● Any other alternative configuration, durations, or pricing schemes should

be submitted as descriptions within the narrative document

● Note: If a single Bidder wishes to submit multiple unique facilities, each

project must be submitted as an entirely separate Submission Package

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Number of Offers Submitted – Standalone Storage

Projects


should be the largest and most competitive. Storage duration may be 4

hours or ≥ 8 hours

● Bidders offering 4-hour storage duration may submit one additional offer

per unique facility if the additional offer is for storage duration ≥ 8 hours



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Number of Offers Submitted – Firm and Shaped

Products


should be the most competitive

● Bidders may submit two additional offers for the same facility, each in a

separate offer template



● Note: for the same project, a bidder may submit both a complete bid

package with a firm and shaped offer, and a complete bid package for a

renewable (or renewable plus storage) offer

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Agenda

● Introduction




● Wrap Up and Q&A

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RFO Schedule

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Date Item

October 21, 2020 RFO issuance and Q&A open

October 28, 2020 Bidder Webinar to discuss RFO process at 11:00am Pacific Time

November 2, 2020Deadline to submit Q&A questions. Submit questions directly on the

RFO website: https://www.ascendanalytics.com/cpa-cleanenergy-rfo

November 10, 2020 Q&A responses posted to the RFO website

November 20, 2020 Deadline to submit RFO Proposals at 5:00pm PT

January - February

2021Bidders notified of shortlist status

January - June 2021Power Purchase Agreement (PPA) and Energy Storage Agreement

(ESA) negotiations and awards

https://www.ascendanalytics.com/cpa-cleanenergy-rfo


Bidder Registration

● To access RFO materials, participate in Q&A, and receive

notifications, all Bidders must register online at:


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Communication

● All documents are posted to the RFO website.

● Email alerts or Developer Notifications are distributed through

Ascend. Register on the RFO website for alerts and

notifications.

● CPA and Ascend Analytics will NOT accept phone calls

regarding this RFO

● All questions should be submitted to the RFO website

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NOTE: If it is discovered that a Bidder contacts and receives

information from any CPA personnel, board director or alternate

outside of this Q&A process, CPA may, in its sole determination,

disqualify such Bidder’s proposal from further consideration


Q&A Process

● Bidders must use the RFO website to submit questions via an

embedded form:


● All questions due by November 2

● All questions are responded to in writing and posted to RFO

website on November 10, 2020

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Project Submittal – Submission Package

● Projects bids should be submitted via the RFO website

https://www.ascendanalytics.com/cpa-clean-energy-rfo by the submission

deadline

● Bidders will be required to upload the following attachments, as detailed in

the RFO Protocol:

o Offer Form Template

o Project Narrative

o Redlined PPA (RPS, RPS+Storage, or Storage)

o Executed non-disclosure agreement

o CPA Vendor Campaign Contribution Disclosure (note: this will be

distributed and made available on the RFO website the first week

of November)

o ArcGIS file of project’s geospatial footprint

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Project Submittal – Offer Form Template

The excel-based Offer Template file is the primary source of data for evaluating

submissions. The Offer Template consists of seven sheets; bidders must complete

the appropriate sheets for the category of project being submitted:

1. Participant and Project Info

2. RPS Generation

3. Storage Parameters

4. Firm|Shaped RE

5. Qualitative Assessment

6. Development Risk

7. Error Validation

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Project Submittal – Project Narrative

Each offer must include a Project Narrative in which specific project details that are not

captured in the Offer Form are described. The Project Narrative should contain the following

sections:

○ Project summary

○ Project details summary table

○ Technology description

○ Detailed site description

○ Project risk

○ Community experience

○ Developer experience

○ Offer variants (e.g. alternative configuration, durations, or pricing schemes)

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Project Submittal – Data Basin

● Bidders are required to submit an ArcGIS Layer Package of

the project footprint within their bid package in .LPK format

● Data Basin (www.DataBasin.org) is used to help Bidders

answer geospatially-explicit questions about projects (Note:

Bidders should allow two days for the Data Basin

registration process)

● The Clean Power Alliance Gallery on Data Basin contains

maps/datasets related to avoidance, renewable energy

zones, and multi-benefit areas

● To assist Bidders, a Data Basin tutorial will be posted to the

RFO website

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http://www.databasin.org/

https://databasin.org/galleries/5a2048e94b5e40719fbfae68ede56298


QA/QC Process

● After the submission deadline, all submissions will be reviewed

for basic compliance and completeness

● Developers may be notified of deficiencies in their submission

materials

● Bidders will have two business days to respond with updated

and compliant submission materials or risk rejection from

consideration

● Bidder is solely responsible for checking compliance of all

submitted materials. Lack of communication from CPA does not

imply confirmation of a compliant submission

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Agenda

● Introduction




● Wrap Up and Q&A

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Quantitative Evaluation

● All projects will be assessed for market performance against the relevant

project Pnode

● Valuation will be performed using Ascend’s PowerSimmTM platform,

dispatching resources against simulated Pnode prices

● Projects will be valued for their Resource Adequacy as well as revenues

across all relevant DA, RT, and ancillary markets

● Data provided by bidders in the Offer Form Template will be used to

model proposals

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Evaluation Criteria

● Individual projects will receive a rank for each of the following

criteria (see Appendix for detailed descriptions):

● CPA will also be collecting data on projects that may not be

used directly for project ranking but will assist in screening

projects for shortlist eligibility

● CPA reserves the right to remove shortlist eligibility for any

project with an identified material risk

Environmental Stewardship

Workforce Development

Quantitative Evaluation

Development Risk

Project Location

Benefits to DACs

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Contracting

● Offers will be evaluated holistically and CPA’s evaluation will

include proposed redlines to the proforma agreement

● Bidders must submit any proposed changes to CPA’s proforma

agreements via redlined Word document along with bids no later

than the RFO deadline of November 20

● CPA does not intend to provide collateral or performance

security in connection with any PPAs that it may execute in

connection with this RFO

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NOTE: Changes to CPA’s standard contract terms submitted

after the response deadline may result in disqualification of

the offer and forfeiture of the Shortlist Deposit


Agenda

● Introduction




● Wrap Up and Q&A

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Wrap Up

● November 2 is the deadline to submit questions to

the RFO website

● November 10 the Q&A will be posted on the RFO website

● November 20 at 5:00pm PT is the deadline to submit RFO

Proposals

● Webinar recording will be posted to RFO website

● Thank you for participating!

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Q&A


Appendix


Development Risk

Projects will be ranked from High to Low

● The development risk metric is a composite rank based on a

number of factors impacting project risk:

○ Site control

○ Interconnection status

○ Environmental screens

○ Land use and permits

○ Project financing

Slide 35


Environmental Stewardship

Projects are ranked high, medium, neutral, and low based on

the following prioritization:

• Demonstrates multiple benefits (provides additional societal,

health, economic, water saving, or environmental benefits beyond

the climate and GHG reduction benefits of renewable energy)

HIGH

• Located in an area designated as a preferred renewable energy

zone and received required land use entitlement permitsMEDIUM

• Project is located in a high conflict areaLOW

Slide 36

• Project does not demonstrate either preference or avoidance

criteria NEUTRAL


Workforce Development

Projects will be ranked high, medium, and low based on the

following prioritization:

• The project will use targeted-hire, union labor, or multi-trade

project labor agreements (including requirements for state-

apprenticeship graduates)

HIGH

• The project does not have a labor agreement, but can

demonstrate prevailing wage, union labor, and targeted hire

commitments

MEDIUM

• The project does not demonstrate prevailing wage, union labor,

and targeted hire commitmentsLOW

Slide 37


Project Location



• In Los Angeles and Ventura countiesHIGH

• Other counties within CaliforniaMEDIUM

• Out of state projectsLOW

Slide 38


Benefits to Disadvantaged Communities



• Located within a DAC and demonstrates DAC

workforce and community development benefitsHIGH

• Project not located within a DAC but can

demonstrate DAC benefits and has completed

community outreach

MEDIUM

• Project does not demonstrate DAC benefitsLOW

Slide 39

Clean Power Alliance 2020 Clean Energy Request for Offers ......CLEAN POWER ALLIANCE RFO Overview...

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