chicago advanced energy demand response & csp evolution kellen bollettino comverge inc. 10/23/14
TRANSCRIPT
Chicago Advanced Energy Demand Response & CSP Evolution
Kellen Bollettino Comverge Inc.
10/23/14
Discussion Topics
• Comverge/Enerwise Introduction
• PJM & ComEd Demand Response Evolution– Capacity Market Program
• PJM Rules Changes– Synchronous Reserve
• ComEd opportunity– Energy Efficiency Credits
• ComEd and DCEO– FERC Order 745 & DC Courts
Leading provider of Intelligent Energy Management (IEM)/Demand Response (DR) solutions
Headquartered in Atlanta, GA
~520 employees
Revenues: 2011 - $136.4 million, 2010 - $119.4 million,
Acquired by H.I.G. Capital on May 16, 2012
HighlightsHighlights
Comverge Overview
Sample ClientsSample Clients
C&I43%
Program ExperienceProgram Experience
3© 2012 Comverge, Inc.
Vertical Market ExpertiseVertical Market Expertise
Industrials
Water/waste water
Education
Manufacturing
Health Care
Retail
Hospitality
Public administration
Open Markets Utilities
PJM Capacity (Summer) Program - RTO
- Obligation to respond to capacity emergencies when called by PJM June through September; 11am to 7pm CST; Non-Holiday Weekdays Maximum of 10 outages for a maximum of 6 hours each
Response within 30 minutes of the dispatch from PJM
100 kW minimum
- Daily payment earned from June 1st through May 31st for readiness to respond
- 2015-16 payments of $118.54/MW day ($43,267/MW from 6/1/15 through 5/31/16)
- Extended Summer $136/MW day ($49,640/MW)*
- 2016-17 payments of $59.73/MW day ($21,801/MW from 6/1/16 through 5/31/17)
- 2017-18 payments of $106.00/MW day ($38,690/MW from 6/1/17 through 5/31/18)
- Extended Summer $120.00/MW day ($43,800/MW)*
- An energy payment may also be received during a curtailment event
*Extensions of Summer Months with additional opportunities for Events
2015-2016 Program Changes30 Minute Dispatch (Note: There is no change in dispatch time for the 2014/15 Capacity season.)
– The Federal Energy Regulatory Commission (FERC) approved a request by PJM to move the default dispatch time for the PJM Capacity program from 120 minutes (2 hours) down to 30 minutes. Starting in delivery year 2015/16, PJM Capacity Market demand response program participants will be expected to curtail within 30 minutes of dispatch.
– Comverge is working with PJM and FERC to broaden the rule and the exception process, but for now, it is anticipated that there will be very few exceptions to the new dispatch requirement and we are operating under the assumption the FERC’s May 9th order will hold.
– Potential Exception Descriptions• Transfer of load to back-up generation requires time-intensive manual process taking more
than 30 minutes• On-site safety concerns prevent location from implementing reduction plan in less than 30
minutes• The manufacturing processes for Demand Response require gradual reduction to avoid
damaging major industrial equipment used in the manufacturing process, or damage to the product generated or feedstock used in the manufacturing process
– Possible Implications• Deployment of Direct Load Control and/or Remote Operation of Generation Assets• Removal from Program in 2015
2015-2016 Program ChangesLimited, Extended, and Annual Programs
Limited (Current Program)• Available for interruption for up to 10 times during curtailment period• June through September (Weekdays, excluding holidays, from 12:00 pm – 8:00 pm)• Each event could last up to six (6) hours in duration
Extended• Available for an unlimited number of interruptions during an extended curtailment period• June through October and the following May (7 days/week between the hours of 10:00 am – 10:00
pm)• Each event could last up to ten (10) hours in duration
Annual• Available for an unlimited number of interruptions during the delivery year• Extended summer period of June through October and the following May (7 days/week between the
hours of 10:00 am – 10:00 pm)• November through April (7 days/weeks between the hours of 6:00 am – 9:00 pm)• Each event could last up to ten (10) hours in duration
PJM Synchronous Reserve Program-- Overview• PJM Regional Transmission Owner’s occasionally need immediate assistance
with system reliability
• Need loads to reduce quickly – within 10 minutes
• Load that can respond in 10 minutes will get paid for that ability to respond
• Load will have to stay reduced for a maximum of 30 minutes per event.
• Estimated 25 events per year
• Get paid for every hour available to be called
• Value based on Synchronized Reserve Market Clearing Price ComEd
– 2014 YTD: 7 Events Averaging 16 Minutes
– Totaling $29,464.77 in Revenue Based on $2 Strike Price
• Penalties for non performance and multiple missed performances.
Month Net Sync Total Hours Cleared2013 $6,041.76 802
1 $0.00 - 2 $0.00 - 3 $2.00 1 4 $22.48 6 5 $8.44 3 6 $0.00 - 7 $2.50 1 8 $0.00 - 9 $252.63 39
10 $1,182.83 166 11 $1,688.26 243 12 $2,882.62 343
2014 $29,464.77 1,524 1 $10,203.05 97 2 $4,282.38 226 3 $3,884.70 243 4 $3,819.34 360 5 $2,991.69 213 6 $1,259.25 88 7 $1,285.47 103 8 $1,081.06 119 9 $657.83 75
PJM Energy Efficiency (EE) Program
• What Projects Qualify?• NOT Demand Response (DR)• Lighting• HVAC• Motors• VFD’s• Refrigeration Equipment• Weatherization / Building Envelope• Process Improvements• Any Electrical Reduction Improvement
PJM Energy Efficiency (EE) Program
• Permanent & Continuous Peak kW Demand Reduction during Performance hours:• June thru August, Weekday, Non-Holiday, 3-6pm• ComEd DCEO Credits Available
• Installation Period• Fully Installed by June 1st of• Eligible Delivery Years• June 2011 – May 2012• Install Date Before May 2012
Demand Response and Similar Programs are Evolving
Utilize Knowledgeable Curtailment Service Provider Guidance
Programs Involvement Becoming More Automated.
Participation supports local electric supplier’s efforts to produce and deliver electricity
more efficiently and cost-effectively
Comverge offers solutions that help effectively participate in the PJM Demand Response
programs to maximize revenues and energy savings
Summation
Kellen Bollettino
Comverge – Sales Executive
(847) 323-2984