PG&E Self Generation Incentive Program (SGIP) Call in number: 1-866-234-4460 Meeting number:...

PG&E Self Generation Incentive Program (SGIP)

Call in number: 1-866-234-4460

Meeting number: *4159730770*

Call in number: 1-866-234-4460

Meeting number: *4159730770*

August 11, 2009

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Goal & Agenda

Goal

Provide general information on the Self Generation Incentive Program and how to apply

Goal

Provide general information on the Self Generation Incentive Program and how to apply

Agenda

• PG&E Background

• SGIP Background, Guidelines, & Eligibility

• 2009 SGIP Program & Updates

• Wind, Fuel Cell, & Advanced Energy Storage

• SGIP Application Process

• Quick Tips

• Q&A

PG&E Background

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PG&E and Our Business

What we do:

• Deliver safe, reliable, and environmentally responsible gas and electricity to approximately 15 million Californians

Electric and gas distribution customers

5.1 MM electric 4.2 MM gas

Electric transmission circuits 18,610 miles

Gas transmission backbone 6,136 miles

Electric generation capacity 6,000 MW

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PG&E as a Partner and Solutions Provider

PG&E Portfolio Solution

Reduce Energy

Use

Renewable Power Supply

ClimateSmart

Partnership

Education

Outreach

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Integration of EE and PV

• EE is typically much more cost-effective than PV

• California’s loading order requires that EE be implemented prior to PV

• Decreasing a facility’s consumption with EE reduces the size – and cost – of the PV system necessary to offset the facility’s load

EE should be implemented prior to PVEE should be implemented prior to PV

Why?Why?

Inquire about EE before

installing PV

Inquire about EE before

installing PV

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We’re Committed to Energy Efficiency

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California

United States

Over the past 30 years, California per capita energy use has remained relatively flat compared to the 50% increase in U.S. per capita energy use.

Source: California Energy CommissionSource: California Energy Commission

SGIP Background, Guidelines, & Eligibility

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SGIP Background: Program Summary

• California Public Utilities Commission (CPUC) rebate program initiated in 2001 to reduce peak demand on the grid

• Scheduled to continue accepting applications through 2012

• Provides incentives for the installation of new, qualifying self-generation equipment installed to meet all or a portion of the electric energy needs of a facility (Large Wind, Fuel Cell, and Advanced Energy Storage Systems)

• Program Administrators: 1. Pacific Gas & Electric Company (PG&E)2. Southern California Edision (SCE)3. Southern California Gas (SoCal Gas)4. California Center for Sustainable Energy (CCSE) for San Diego Gas & Electric (SDG&E)

• California Public Utilities Commission (CPUC) rebate program initiated in 2001 to reduce peak demand on the grid

• Scheduled to continue accepting applications through 2012

• Provides incentives for the installation of new, qualifying self-generation equipment installed to meet all or a portion of the electric energy needs of a facility (Large Wind, Fuel Cell, and Advanced Energy Storage Systems)

• Program Administrators: 1. Pacific Gas & Electric Company (PG&E)2. Southern California Edision (SCE)3. Southern California Gas (SoCal Gas)4. California Center for Sustainable Energy (CCSE) for San Diego Gas & Electric (SDG&E)

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SGIP Background: Eligible SGIP Technologies

2001-2005

• Level 1: PV, Wind, Renewable Fuel Cells

• Level 2: Non-Renewable Fuel Cells

• Level 3N, 3R: Microturbines, IC Engines, Small Gas Turbines

2006

• Level 1: PV

• Level 2: Renewable Non-Solar: Fuel Cells, Microturbines, IC Engines, Small Gas Turbines, & Wind

• Level 3: Non-Renewable Non-Solar: Fuel Cells, Microturbines, IC Engines, Small Gas Turbines

2007

• Level 1: PV transitioned into California Solar Initiative (CSI) Program

• Level 2: Renewable Non-Solar: Fuel Cells, Microturbines, IC Engines, Small Gas Turbines, & Wind


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SGIP Background: Eligible SGIP Technologies (Cont.)

2008

• Level 2: Renewable Non-Solar: Fuel Cells, Wind


2009:

• Level 2: Renewable Non-Solar: Fuel Cells, Wind


• Level 2 or Level 3: Advanced Energy Storage, Coupled with a new or existing SGIP funded Wind or Fuel Cell

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SGIP Guidelines & Eligibility

• Pacific Gas and Electric (PG&E)

• Southern California Edison (SCE)

• Southern California Gas Company (SoCal Gas)

• San Diego Gas & Electric (SDG&E)

– The California Center for Sustainable Energy (CCSE) administers the SGIP in the SDG&E Service Territory

Eligible customer projects must be within the service territory of and must receive retail level electric and/or gas service from:

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SGIP Guidelines & Eligibility (Cont.)

• Maximum incentive is 3 MW, with maximum system size 5 MW1

• Must be interconnected and serve on-site load

• Non-Renewable systems must satisfy PU Code 216.6 requirements or documenting a minimum electric efficiency equal to or greater than 40% of higher heating value basis

• All fossil fuel combustion generators must satisfy both a 60% overall system efficiency and a NOx emissions equal or less than .07 lbs/MWh

1 Per Decision (D.) 08-04-049, SGIP Administrators for 2008 and 2009, on a pilot basis, will pay qualifying distributed generation projects incentives up to 3 megawatts (MW) from prior years’ carryover funds

2009 SGIP Program & Updates

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2009 Program Updates

• California Supplier - An additional incentive of 20 percent will be provided for the installation of eligible distributed generation technologies from a California Supplier. (Section 3.5)

• AES - Advanced Energy Storage systems that meet certain technical parameters and are coupled with eligible SGIP technologies, currently wind and fuel cell technologies, are eligible in PY2009 and will receive an incentive of $2 per watt of installed capacity.

• The PY2009 budgets by SGIP Program Administrator are –

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2009 SGIP Incentive Rates

Incentive Levels Eligible Technologies

Incentive Offered ($/Watt)

Minimum System

Size

Maximum System

Size

Maximum Incentive

Size

Wind turbines $1.50/W

Renewable fuel cells $4.50/W

Level 3Non-Renewable

Non-SolarNon-Renewable fuel cells $2.50/W None 5 MW 1 MW

Advanced Energy Storage

Coupled w ith eligible self generation technology and four hour discharge period at rated

capacity $2.00/W None 5 MW 1 MW

1 MWLevel 2

RenewableNon-Solar

5 MW30 kW

For projects that are greater than 1 MW up to 3 MW, the incentives identified above declines according to the schedule below:

Capacity Incentive Rate (Pct. of Base)

0 – 1 MW 100%

>1 MW – 2 MW 50%

>2 MW – 3 MW 25%

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2009 PG&E Program Goals

• Encourage and facilitate more DG systems

• Reduce Barriers

– SGIP Application Requirements

– Interconnection Paperwork

• Expand Marketing & Outreach Efforts

• Possible partnerships with Developers and State

• Educate Community about DG systems and SGIP Program

– Webinars, Classes, Expos, Conventions

Wind, Fuel Cells, and Advanced Energy Storage

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Wind Requirements

• Wind turbine rated capacity is the highest electrical output from the manufacturer’s power output curve for wind speeds up to 30 mph including inverter losses. (Section 2.5.4)

• Wind Turbine Projects may be sized up to 200% of the Host Customer’s previous 12-month annual peak demand at the proposed Site. (Section 2.5.6.1)

• Equipment: Inverter must be on CEC Approved List, Wind Turbines must be commercially available

• System Size: > 30 kW, < 30 kW applies through CEC Emerging Renewable Program

• 5-year system warranty

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Fuel Cell Requirements

• Renewable Fuel Cell vs. Non-Renewable Fuel Cell

– Renewable Fuel: Biogas, Landfill Gas, Digester Gas

– Non-renewable Fuel: Natural Gas, Waste Gas

– To qualify as a renewable fuel cell, fuel source must be > 75% renewable

• Non-Renewable Fuel cells must meet a minimum 40% operating efficiency requirement

• Fuel Cell Projects may be sized up to 100% of the Host Customer’s previous 12-month annual peak demand at the proposed Site.

• Equipment: Fuel Cell Equipment must be commercially available

• System Size: Capped at 5 MW with incentives up to 3 MW

• 5-year system warranty

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Fuel Cells – Typical Applications

Fuel cells with thermal byproduct (“CHP”)

Electric-only fuel cells

Ideal site characteristics • Large thermal load to take advantage of “free” thermal product

• Coincident thermal and electrical loads to (ensures thermal product can be utilized)

• Any facility interested in self-generation

• Low thermal needs (otherwise CHP system may be potentially more attractive)

Typical applications Colleges and universities

Food/beverage processing

Hospitals and prisons

Hospitality

Manufacturing

Wastewater treatment

Any facility interested in self-generation

Thermal load not necessary for project economics

Typical payback period ~ 8 to 15 years, with incentives (varies)

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AES Background

Timeline

• December 2006 - VRB submitted a request to include AES as an eligible technology in the SGIP

• July 2007 – SGIP Working Group delivered split recommendation to CPUC for deliberation

• Summer 2008 – CPUC conducted additional fact finding through the proceeding.

• November 2008 – CPUC approved introduction of AES

What is AES?

AES stands for Advanced Energy Storage. These are battery-like storage systems that convert energy to a storage medium and then reconvert back to energy.

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AES Requirements

• AES is to be coupled with a current SGIP technology. It is required that incentives be funded from the same budget as the accompanying technology.

• Any current or previously funded SGIP projects (Wind or Fuel Cells) is eligible to install AES and receive incentives.

• AES must be sized no larger than the rated capacity (kW) of the SGIP eligible technology it is operating in concert with.

• The Advanced Energy Storage Project capacity rating must be the net continuous discharge power output (kW) over a four hour period and must be established from manufacturer documentation.

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AES Requirements (Cont.)

• Advanced Energy Storage systems utilizing hydrogen as the storage medium are not eligible at this time. (Section 2.5 and Section 6).

• Ability to meet IEEE Interconnection standards

• Ability to operate in distributed, customer sited locations and comply with all local environmental and air quality requirements

• 5-year system warranty consistent with other eligible program technologies

SGIP Application Process

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SGIP Application Process Overview

Reservation Request Form

Proof of Project Milestone(Due 60 days from Reservation)

Incentive Claim Form

Conditional Reservation Notice(Res/Com - 1 year expiration,

Gvt/Non-profit – 1.5 yr expiration.)

Reservation Confirmation & Incentive Claim

Conduct Field Inspection & Payment Process

Applicant Program Administrator

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SGIP Application Process – Step 1 of 4

Reservation Request Form (RRF)

• Reservation Request Application Form & Checklist

• Proof of Utility Service

• 12-month Electric Load Documentation

• Proof of Adequate Renewable Fuel Source (Renewable Fuel Cell Only)

• Waste Heat Emission Worksheet (Non-Renewable Fuel Cell Only)

• Application Fee – 1% of requested incentive

– For equipment that is not commercially available

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Proof of Project Milestone (PPM)

• Proof of Project Milestone Checklist

• Copy of Executed Installation Contract

• Revised Minimum Operating Efficiency Calculations (Non-Renewable Fuel Cells, if applicable)

• Fuel Clean-Up Equipment Purchase Order (Renewable Fuel Cells Only)

• Renewable Fuel Affidavit (Renewable Fuel Cells Only)

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Incentive Claim Form (ICF)

• Incentive Claim Form & Checklist

• Proof of Authorization to Interconnect

• Final Project Cost Breakdown Worksheet

• Final Project Cost Affidavit

• Final Building Permit Inspection Report

• Substantiation of load (if applicable)

• Substantiation of Renewable Fuel Source (Renewable Fuel Cells Only)

• Revised Sizing Calculations (if applicable)

• Revised Minimum Operating Efficiency Calculations (Non-Renewable Fuel Cells, if applicable)

• Final Fuel Clean-up Skid Documentation (Renewable Fuel Cells only)

• Final Air Permit Documentation (Non-Renewable/Renewable Fuel Cells Only)

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Field Inspection

• Required for all SGIP projects

• Verify Make, Model, and System Sizing of Equipment Installed

• Verify Load Substantiation for project

• Verify Fuel Source

• Confirm Permanency of Installation

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Net Energy Metering Options

• NEM Wind (NEMW)– Full retail credits < 50 kW systems

– Generation credits only > 50 kW systems

• NEM Fuel Cells (NEMFC)– Generation credits only

• NEM Biogas (NEMBIO)– Generation credits only

– Dairies can apply generation credits to other accounts

• NEM Multiple Technologies (NEMMT)– For meters with hybrid technologies or

– NEM and Non-NEM interconnection

• NEM limited to 1 MW per meter

• Rule 21 Non-Export– Generators that will never export

– Simpler billing for customers

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Quick Tips

• Perform EE audit and implement measures

– No Cost

– Low Cost

– Investment

• Contact PV consultants or vendors

• Solicit bids from multiple vendors

• Evaluate proposals using standardized criteria

• Inspect PV system periodically

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SGIP Resources

SGIP Contact Information

• SGIP Hotline: (415) 973-6436

• SGIP Inbox: [email protected]

• Website: www.pge.com/sgip

Interconnection Contact Information

• Interconnection Hotline: (415) 972-5676

• Interconnection Inbox: [email protected]

• Website: www.pge.com/gen

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Q&A

Questions?

PG&E Self Generation Incentive Program (SGIP) Call in number: 1-866-234-4460 Meeting number:...

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