© 2006 san diego gas and electric. all copyright and trademark rights reserved. how to fund your...

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© 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. “How to fund your Virtualization Project” SDG&E 2007 Energy Efficiency Program Incentives Guy Hansen SDG&E Sr. Program Manager

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Page 1: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

© 2006 San Diego Gas and Electric. All copyright and trademark rights reserved.

“How to fund your Virtualization Project”

SDG&E 2007 Energy Efficiency Program Incentives

Guy HansenSDG&E Sr. Program Manager

Page 2: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Virtualization Project Incentives

2007 SDG&E Energy Efficiency Program Incentives

What qualifies for SDG&E Energy Efficiency Program Incentives?

SDG&E provides Energy Efficiency Program incentives for quantifiable and

calculated energy reductions. Energy reductions are measured in reduced kilowatt

hours (kWh) per year.

What elements of a Virtualization Project would result in energy reduction and

qualify for Energy Efficiency Incentives?

Consolidation and physical removal of existing equipment, being replaced with less or

more energy efficient equipment, by no later than December 31, 2008.

Examples: Reduced quantity of, Servers, Storage Area Network (SAN), Disk drives,

Tape drives, desktop personal computer consolidation to thin clients etc.

Page 3: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Virtualization Project Incentives

2007 SDG&E Energy Efficiency Program Incentives

What are the applicable SDG&E Energy Efficiency Programs and their Incentive

Rates?

Incentives formulas may vary by Energy Efficiency Program are paid on a cents per kilowatt per

hour (kWh) basis.

Standard Performance Contract (SPC)

Energy-efficiency measures with documented savings pays 8 Cents per kWh/yr energy savings.

(Visit www.sdge.com/spc for program details)

Energy Efficiency Savings Bid Program (EE Bid)

Offers customers and project sponsors the opportunity to receive larger incentives for projects that

produce energy savings of at least 500,000 kWh . Pays 8-10 cent per kWh/yr in documented

energy savings. (Visit www.sdge.com/bid for program details)

Page 4: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Standard Performance Contract (SPC) – Eligibility

Who?

• Businesses with an SDG&E electric or gas account

What?

• Retrofit projects that deliver kWh or therms savings

• How Incentives are paid• Calculated – on pre-determined energy savings

• Measured – on actual measured energy savings

• Measures must exceed federal and state standards

Page 5: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Standard Performance Contract (SPC) – Eligibility

SDG&E Electric Service Territory

Page 6: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Virtualization Project Incentives – Getting Started

What supporting documentation will SDG&E require

and at what point should I apply for Program Incentives?

Existing audit inventory of potential Servers to be removed from facility

• Existing Make

• Existing Model

• Existing Power Consumption

Proposed Quantity of Virtualized Servers

• New Make

• New Model

• New server power consumption

Contact SDG&E, submit completed Program Application documents with supporting documentation

requesting “Pre-inspection” prior to equipment order or start of project..

Page 7: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Standard Performance Contract – Incentives

• Incentives on calculated or measured savings pay as follows:• Lighting - $0.05/kWh

• Air conditioning and refrigeration - $0.14/kWh

• Motors and other equipment (Server Virtualization etc). - $0.08/kWh

• Gas equipment - $0.80/therm

Page 8: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Standard Performance Contract – Process

How to Apply

• Complete and submit a SPC application• Downloaded from:

• www.sdge.com/business/bus_energy_efficiency.shtml , or

• Request a CD-ROM

• SDG&E must inspect the site prior to the start of the project

Incentive Limits

• Incentives may not exceed 50% of the measure cost.

• Incentive caps:• Customer Site - $350,000

Page 9: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Energy Savings Bid - Who’s Eligible?

• Businesses with an SDG&E electric or gas account

• Project(s) must save a minimum of 500,000 kilowatt-hours (kWh) annually or 25,000 therms annually• all measures must be retrofits or replacements of

existing, operating equipment

• pre-inspections are required before work begins

• Aggregation of measures and/or project sites is acceptable

Page 10: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Energy Savings Bid - Incentives

• Provides higher incentive rates than the California statewide Incentive/Rebate Programs  

• Incentives may qualify for 100% of measure costs

• There are no limitations on the maximum incentive amount paid to individual customers or project sponsors   

• All savings and incentives are based on measured, actual savings as approved by SDG&E

Page 11: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Energy Savings Bid – How to Apply

• Participation is easy and user-friendly. There are only two application forms and two simplified spreadsheets --- available at www.sdge.com/business/bid.shtml

• Measurement & Verification (M&V) is required. M&V can be performed by: • SDG&E’s independent third-party contractor, or

• customer/project sponsor

• We can help with the paperwork 

Page 12: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

Contact Us

Contact your SDG&E Account

Executive

Or

Guy Hansen

Sr. Program Manager

858-650-4004

[email protected]

Page 13: © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program

© 2006 San Diego Gas and Electric. All copyright and trademark rights reserved.

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