Installing Generation - Behind the Meter Chris Rogers Sega, Inc. November 6, 2014 2014 KMEA Annual...

Installing Generation - Behind the Meter

Chris RogersSega, Inc.

November 6, 2014

2014 KMEA Annual Conference

What is “Behind the Meter” Generation?

“Commonly used to refer to the flow of electricity before it hits the meter on the transmission system wires” - SPP IM Dictionary and Quick Reference Guide, 2011

NOT “Photovoltaic (PV) industry term “Behind The Meter” (BTM):A renewable energy generating facility that produces power intended for on-site use in a home, office building, or other commercial facility where the solar PV system is literally “Behind The Meter”, on the owner’s property, not on the side of the electric grid/utility. Similar concept applied to municipals.


What is “Behind the Meter” Generation for Municipalities?

• Small Generation - Typically < 10 MW up to 25 MW

• Connected to City’s Internal System < 100 kV - Sub-Transmission

• Generation for Local Consumption - Not for Sale to Third Parties


Why Install BTM Generation? - Continued Change

• PPA Expiration or Unit Retirements

• Transmission Congestion / Curtailment

• Obsolescence - Economic, Environmental, or Regulatory

• Risk Management - Diversity of Sources and Fuels

• Flexibility - Response to Balance System and Loads

• Load Growth


Benefits of Behind the Meter Generation

• OWNERSHIP - Local Control - Self Sufficiency

• Avoid Transmission Congestion / Curtailment

• Local System Reliability

• Peak Shaving / Reduction

• Standby / Emergency Response

• Dispatchable vs. Interruptible

• Enhance Market Participation


Risks of Behind The Meter Generation

• Costs - Capital Intensive Projects

• Responsibility - Cost and Schedule

• Resources - Labor

• Complexity - Coordination

• Fuel Availability / Management

• Electric Interconnection

• Permitting Issues

• Stakeholder issues


Dispatchable Options for BTM Generation

• Gas Turbine Generators

◦ Simple Cycle

◦ Combined Heat and Power (CHP)

◦ Combined Cycle

• Reciprocating Engine Generator Sets


Dispatch Options for BTM Generation


Generator Fuel Net Output (MW)

Heat Rate (HHV, Net)

Overnight EPC Cost ($ Millions)

Overnight EPC

Cost/kW

Solar Mars 100Natural Gas 10.6 11,820 $16.1 $1,522

Dual Fuel 10.6 11,820 $17.6 $1,661

Siemens SGT-400Natural Gas 13.5 10,900 $17.3 $1,284

Dual Fuel 13.5 10,700 $18.1 $1,338

Solar Titan 130Natural Gas 14 11,020 $18.0 $1,283

Dual Fuel 14 11,020 $20.0 $1,425

General Electric LM 2000Natural Gas 16.4 11,070 $22.8 $1,388

Dual Fuel 16.4 11,070 $23.2 $1,417

General Electric LM 2500 PJNatural Gas 21.6 10,640 $28.0 $1,297

Dual Fuel 21.6 10,640 $29.1 $1,346

Siemens SGT-600Natural Gas 22.8 11,070 $25.5 $1,117

Dual Fuel 22.8 11,300 $27.2 $1,192 Wartsila 20V34SG Natural Gas 18.4 8,300 $23.1 $1,256 Wartsila 20V34DF Dual Fuel 18.4 8,370 $23.8 $1,296



Characteristics of Natural Gas-Fueled Generation Options

Description Reciprocating Engines Combustion Turbines

OEM Caterpillar Wartsila GE Siemens SolarModel G20CM34 20V34SG LM2500 LM200 SGT-600 SGT-400 Titan 130 Mars 100Rating MW(1) 9.3 9.2 22.8 18 22.8 13.5 14.9 10.5

Heat Rate BTU/kWh(2) 8,000 8,150 11,050 11,300 11,450 10,900 11,300 11,900 0 to 100% Load Minutes 8 10 10 10 20 8 10 10Maintenance Basis Hours Hours Hours Hours Starts Starts Starts Starts (1) Site rating conditions: 59 0F ambient dry bulb temperature, 60% relative humidity, and 900' AMSL elevation. (2) Net heat rate on HHV basis at 100% load for site rating conditions.



5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%$0

$50

$100

$150

$200

$250

$300Sample Costs of Dispatchable BTM Generation Options

Recip Engine Plant

Combustion Turbine Plant

Annual Capacity Factor, %

Total Cost($/MWh)

Dispatchable Options for BTM Generation• Compare BTM Options to Conventional Generation Sources


5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500Generation Alternatives

Older Coal Unit

Older Coal Unit with Compliance Upgrades

Recip Engine Plant

Combustion Turbine Plant

Newer Large Coal Unit A

Newer Large Coal Unit B

Annual Capacity Factor, %

Total Cost($/MWh)

Renewable Options for BTM Generation

• Solar Photovoltaic (PV) Solar Projects

• Wind Generators

• Energy Storage - Batteries, CAES


Solar PV for BTM Generation

• Utility Scale <5 MW to 20 MW

• NREL 2014 Projected Capital Costs - $2/WDC

• 5 MW Municipal Solar Garden - $10,000,000

◦ $180/MWh @ 15% Capacity Factor

◦ $137/MWh @ 20% Capacity Factor

• Solar PV Parity (Subsidized) in 10 States


Wind Generation - Not Typically BTM

• Current Regional PPA Proposal Ranges

◦ $20/MWh to $30/MWh

◦ 40% to 50% Capacity Factors

◦ 50 MW - “Utility Scale”

◦ Developer Keeps RTC

◦ Purchaser Takes Delivery Risk


Renewable Options for BTM Generation• Compare Conventional and Renewable Options


Renewable Options for BTM Generation• Regional PV Projects


Location MW In Service Owner

Missouri Butler 3 April 2014 DeveloperCity Utilities of Springfield 4.95 August 2014 DeveloperO'Fallon 5.7 November 2014 AmerenIndependence ≤ 5 Late 2015 DeveloperNixa > 5 Late 2015 Developer

Sample PV Projects3 MW - Butler, MO

5 MW - Springfield, MO


Sample PV Projects: 3 MW Butler, MO


Favorite Kansas Behind The Meter Project

Garden City, KS - Jameson Energy Project


Garden City, KS - Jameson Energy Center


Key Issues for Successful BTM Generation Projects

• Planning

• Siting

• Financing

• Schedule

• Electric Interconnection

• Contracting Methodology

• Contingency

• Owner’s Participation

• O & M Plans


"Tragic Prelude" (1938-40) by John Steuart Curry (1897-1946)


Kansas: Optimism to Change for the Future

Installing Generation - Behind the Meter Chris Rogers Sega, Inc. November 6, 2014 2014 KMEA Annual...

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