PPL HEALTHCARE SYMPOSIUM · FIRST, LET’S BUST SOME MYTHS CPowerEnergyManagement.com | 844-...

PPL HEALTHCARE SYMPOSIUM

Earning Revenue with Demand-side Energy Management

10/05/2017

WHO IS CPOWER?

CPower is a demand-side energy management solutions company.

We create optimized energy management strategies that help

our customers EARN revenue,

SAVE on electricity costs,INCREASE reliability and

ACHIEVE sustainability goals.

CPowerEnergyManagement.com | 844-276-9371

WHO IS CPOWER? 120 dedicated resources – we are powered

by our people! National experience. Local expertise. 44+ demand-side programs 3,500 MWs enrolled 15+ utility programs 1,300+ customers, 7,000+ sites Demand-side solutions including:

Capacity Economic Synch Reserve EE PLC management Generator assessment/permitting

End-to-end, in-house, full service operations, dispatch and fulfillment

Trusted by several states and municipalities as their CSP for demand response

Certified EE M&V provider


WHAT WE WANT YOU TO KNOWToday, we will help you understand:

Capacity Performance: What exactly is “CP” and what does it mean What CPower is doing to prepare our customers for 2021 How you can benefit from the changes

Energy Efficiency: What you need to know about maximizing EE project value Certified EE projects can earn you capacity credits and revenue

Tools and programs to add value to our customer’s portfolios: Largest portfolio of Synch reserve in PJM Economic customers in several industries and the CPower app PPL and other PA utilities for PA ACT 129 demand response programs EG assessment, permitting and evaluations


CAPACITY PERFORMANCEWhat it is, and what it isn’t

The Polar Vortex of 2014 drives PJM to create year-round programs Designed to increase reliability by mitigating issues derived from excess summer only

resources Achieve greater reliability through stricter compliance and availability requirements Non-performance penalties will be calculated differently Year-round (winter load) availability requirement

2020/21 will see significant changes to PJM’s Capacity Market More requirements does not mean lower rewards. Participation will be rewarded, period. Reaping those rewards however, requires a little myth busting!


FIRST, LET’S BUST SOME MYTHS


Registered DR has been around 9,000 MWs since 2012/13 on average.

DR has slightly decreased but is hardly declining.

PJM believes DR is an effective market tool: Demand Response (DR), if visible and dependable,

has proven to be a valuable operational tool that assists in maintaining reliability both for real-time grid stability and long-term resource adequacy.” – PJM Demand Response Strategy (Jun 2016)

This is not the first change to market structure, it will probably not be the last

The stakes are higher – for all. Generators have increased availability and

performance requirements Chances for emergencies should decrease,

making the likelihood for a DR event lower Still a summer-peaking RTO Greater risk of a summer DR event than winter

event Participation, not penalties, should be the focus

for how your business will benefit Don’t forget about energy payments!

ENGINEERING SUPPORT 3 STEPS TO SUCCESS


Dedicated, uniquely qualified engineering staff providing unmatched support to healthcare facilities.

CPower is Capable of Providing Support For:

PJM Demand Response and Demand Management Programs.1.

2.

3.

Demand Response and Demand Management Performance.

Energy Efficiency and Peak Demand Management

ENGINEERING SUPPORT FOR GENERATORS AND PROJECTS Emergency Generators to meet specific EPA and State criteria for DR Verify generators are compliant, mitigating risk to the State

CPower Generator Reviews & Project support:

No cost assessment, participation capability, permitting Analysis of revenues and ROI/payback period Feasibility reporting Replacement recommendations Emission control recommendations

CPower Generator Review & Project Support -- Facilities

City of Norfolk City of Newport News Reagan Intl. Airport Virginia Tech

Other Projects and Support: Town of Leesburg & WWTP | Prince William County | Bridgewater Retirement Center

ENGINEERING SUPPORT FOR CURTAILMENT & ANALYSIS Support for Demand Management Participation Sophisticated analysis and curtailment planning

Enhanced DR participation DR and Peak Demand

Strategies Statistically-based analysis Energy Efficiency Projects

Gather Information

Analyze Data

Extract Points

Identify Patterns

Discover Answers

Custom site-by-site plan Optimized strategy Disruption mitigation Enhanced automation

recommendations Maximized quantifiable load

City of Virginia Beach Convention Center Blue Ridge Community College Page County Schools Stafford Schools Virginia Military Institute James Madison University Virginia Community College System … and many more

Curtailment Plan and Energy Analysis Customer Examples

TBD TBD TBD TBD

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CAPACITY PERFORMANCEhospitals & medical facilities

Pittsburgh, PA

UNDERSTAND YOUR STRATEGYYour seasonal operation and load profile as well as how you curtail are the keys to understanding how you fit into the CP

program.

Flatter year-round loads with the ability to curtail the same way should see little impact to their curtailment amount as they transition to CP.

Facilities that peak shave (PLC Management) or are unable to curtail the same loads in the winter as the summer will have excess winter or summer load shedding capabilities.

If your current curtailment strategy or load profile alters your CP capabilities what else can we consider?

Process Shifting? Behind the Meter Gens? Other Loads?

Lighting Cooling Process Heating

CP Aggregation


VARIABLE SEASONAL LOAD

Facility with a lower load profile in the winter than the summer. The Winter PLC/FSL is lower than the Summer PLC/FSL. Customer would be a 600 kW CP load drop candidate with 400 kW

of excess Summer load drop capabilities.CPowerEnergyManagement.com | 844-276-9371

ENERGY EFFICIENCY AND DEMAND RESPONSE


The savings and earnings created by one EE project helps fund additional projects, which can produce more energy savings, earnings and streamline your organizations

efficiency goals.

When coupling the EE savings and earnings with DR programs like Capacity, Economic and/or Synch Reserves, ROI for EE projects can be realized even faster.

$ $$ $$ $$ $ $ $$

WHAT IS ENERGY EFFICIENCY?Energy Efficiency or “EE” is a valuable resource in the electricity

wholesale capacity market. It is valued at the same price as electricity produced by a power plant.


Lighting Chillers Process Improvements

Green/ LEED Building, New Construction

VFDs

Installation PeriodProject Fully Installed

by June 1 of:Remaining Eligible Years

June 2014 – May 2015 2014 2018/19

June 2015 – May 2016 2015 2018/19, 2019/20

June 2016 – May 2017 2016 2018/19, 2019/20, 2020/21

June 2017 – May 2018 20172018/19, 2019/20, 2020/21,

2021/22

Qualifying EE projects:

Qualifying Timelines:

ENERGY EFFICIENCY PROGRAM PARAMETERS


Compensation $/kW rates based on zone and enrollment years

Compliance Period Project must be able to be measured to show demand reduction between the hours of 2 pm – 6 pm, Jun – Aug excluding weekends and NERC holidays. Starting Jun 2020 enrollments, projects will also require permanent load reductions during Jan –Feb, 7 am – 9 am and 6 pm and 8 pm

Enrollment Deadline 15 business days prior to Jun 1, (typically around May 10)

Measurement and Verification (M&V) Verification of average load reduction during PJM peak

A “whole-building analysis” is essential to truly understanding your savings and earnings opportunity.

Lighting Refrigeration HVAC Motors Variable-frequency Drives (VFDs) Weatherization/Building Envelope LEED/Green Building Industrial Process Improvements New construction projects exceeding

Dispatchable Resources Load-shifting Behavior change, programmable thermostats Solar, wind, cogeneration Fuel switch (conversion to natural gas

Qualifying Projects Non-qualifying Projects

ONE ENERGY EFFICIENCY PROJECT

The “Fifth Fuel” PJM recognizes EE as a

fuel type

Paid at same value as Natural Gas, Coal, Nuclear or Renewables

If you saved it, you do not need to generate it—therefore saving billions of $$ in power plants and transmission lines


Two paths to monetize

Utility RebatesState Mandated to

reduce energy consumption

PJM CreditViews your facility as

a mini power plant

Regional Transmission

Operator (RTO)

KW reductions

Paid from CPower$$$

For profit electric distribution

companies (EDC)

KWh reductions

Paid from your utility $$$

HOW MUCH WILL MY PROJECT EARN?


Sample Lighting Project

Pre kW Post kW EE kW

loaddrop

Year 1 kW value (avg. all zones)

Year 2 kWvalue (avg. all zones)

Year 3 kW value (avg.all zones)

Year 4 kW value** (avg.)

Total EECapacity earnings

220kW 125kW 95 $2,178 $1,219 $1,672 $1,689 $6,758

Average Savings on Electricity Bill cost (project savings) x 4 years*

$19,355

4-Year Project Savings and Earnings (estimate)$26,113

* Estimated savings for load reduction over 4 years** 4th year based on 3-yr. average.



Green/LEED Building


$224,000


OriginalkW (avg)

EE improvedkW (avg)

EE d kW load drop

Year 1 kW value

(avg. all zones)





3210 2410 800 $18,337 $10,264 $14,081 14,227 $56,908




Chiller Plant VFD


OriginalkW (avg)

EE improvedkW (avg)

EE kW loaddrop

Year 1 kW value (avg. all zones)





149 89 60 $1,375 $ 770 $1,056 $1,067 $4,268


$14,400


GETTING STARTED


Facility CPower Facility

• Identify Projects• Assign Point Person• Execute contract• Submit requested

documents to CPower

• Verify kW reductions based on collected data

• Report revenue stream to• Submit MW’s into PJM EE

Credit Market

• Pay Customer• Quarterly for as long as

the project is eligible

THE DEMAND RESPONSE FACTOR


Energy Efficiency and Demand Response

Demand Response$862,714*

4-YearSavings/Earning

Potential*

CapacityEconomic

Synch Reserve

$537,024*

4-Year ProjectSavings and

Earnings*

$18,668*


Earnings*

$26,113*


Earnings*

$280,909*

* Estimated values based on demand response contribution, energy cost savings

and 4-yr EE credit values.

TBD TBD TBD TBD

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BEYOND CP & EEWHAT TO CONSIDER WITH .. AND BEYOND … CP & EE

STACKING PROGRAMS


$(Saving & Earning)+ =

Demand Response“Stacking” $$

Capacity (Emergency, CP)

PLC Management

ACT 129 Programs

Synch Reserve

Economic

Energy EfficiencyLoad Shifting

Demand Management“Stacking” $$

Understanding your organization’s operations and capabilities is paramount. Three fundamental questions can help begin the framework for your demand management strategy: WHAT can be curtailed? HOW QUICKLY can it be curtailed? HOW LONG can curtailment be sustained? WHAT PROJECTS should be considered for long

term energy goals?

Creating more value through PJM’s Demand Management Programs

MEET THE CPOWER PJM TEAM


The value of a full-service integrated team

THANK YOU!Meg Kelly / Suzanne Levine

[email protected]@CPowerEnergyManagement.com

1-844-CPOWER1


mailto:[email protected]

mailto:[email protected]

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