Slide 1: Behind the Meter Generation
BEHIND THE METER GENERATION Presenter: Name MONTH ##, 2017 Kia Barkhordari, MBA, P.Eng., CEM, CMVP CDM, Industrial Programs Lead Feb 21, 2018
Slide 2: Note to Reader
NOTE TO READER Please note the following slides are for your information only and may not be referred to as a legal document. Official program rules and Hydro One contracts prevail the contents of the slides herein. 2 February-22-18
Slide 3: Agenda
AGENDA • Introduction • Process & Systems Upgrade Program • Behind the Meter Generation (BMG) • Screening BMG Projects • Gross Load Billing • Fossil Fueled CCHP – July 1 Application Deadline • Eligibility of BMG Projects post July 1 Deadline • Islanding BMG Projects • New Guidelines • BMG Applicatio
Slide 4: Hydro One at a glance
Hydro One at a glance 640,000 km2 30,000 km of high-voltage 306 service territory transmission lines transmission stations 1.3 million residential 123,000 km of local 1.6 million and business customers distribution lines distribution poles across Ontario 4 February-22-18
Slide 5: Conservation and Demand Management (CDM)
Conservation and Demand Management (CDM) Every $1 we invest in energy efficiency avoids $2 in costs to the electricity system. The Ministry of Energy’s The Independent Electricity Save on Energy works 2015-2020 Conservation System Operator leads and collaboratively with First Framework has a oversee
Slide 6: Process & Systems Upgrade Program
Conservation Programs – Large Commercial Customers Process & Systems Upgrade Program • Get technical expertise financial incentives to upgrade complex systems • Industrial, large commercial, agricultural and multi-residential customers can qualify for projects saving more than 100 MWh/year • Behind
Slide 7: BMG Types
BMG Types • The following types of BMG projects may be eligible under PSU program pursuant to the Energy Conservation Agreement: • Waste Energy Recovery (WER) projects that means the generation of electricity primarily from heat or fuel that is a waste by-product of the Facility. • Conservation Comb
Slide 8: BMG Incentive
BMG Incentive • The Project Incentive equals to the lowest of the following: • 70% of the Estimated Eligible Costs of the WER Project or, in the case of a CCHP Project, 40% of such Eligible Costs; • the product of the estimated Annualized Electricity Savings multiplied by $200/MWh; • the amount that
Slide 9: BMG Facility Eligibility
BMG Facility Eligibility • In addition to any criteria set out in the applicable Program Rules, the proposed BMG project must: • be connected to the LDC’s Distribution System, unless otherwise approved by the LDC. Should the Participant elect to connect to the LDC’s Distribution System at a later da
Slide 10: BMG Project Eligibility
BMG Project Eligibility • In addition to any criteria set out in the applicable Program Rules, the proposed BMG project must: a. have a Gross Nameplate Capacity of less than 10MW; b. not be used for the sole purpose of reducing electricity demand during the five critical system-peak hours; c. in the
Slide 11: BMG Project Eligibility – Cont’d
BMG Project Eligibility – Cont’d d. in the case of a CCHP project, meet the following additional criteria: i. use natural gas or propane as its sole fuel, unless otherwise approved in writing by the IESO; ii. be designed and operated in a manner that the CCHP project achieves a minimum annual Total
Slide 12: BMG Screening
BMG Screening • All BMG project applications are subject to screening: a. LDC/Hydro One Screening: i. Short Circuit Capacity at Transformer Station (TS) ii. Thermal Capacity at TS b. IESO Screening that includes CDM and non-CDM projects in the planning stage: i. Short Circuit Capacity at TS ii. Ther
Slide 13: BMG – Gross Load Billing (GLB)
BMG – Gross Load Billing (GLB) • As per the OEB approved Hydro One distribution rate order, Gross Load Billing (GLB) is a mechanism for recovering costs incurred to build and maintain distribution assets needed in order to meet the customer’s maximum demand. GLB is only applicable to the Hydro One S
Slide 14: BMG – Gross Load Billing (GLB) – Cont’d
BMG – Gross Load Billing (GLB) – Cont’d • What charges are billed at Gross Demand? • Distribution Delivery Charges • Transmission Line & Transformation Connection Charges • What charges are billed at Net of Generation? • Transmission Network Service Charge • Commodity, Global Adjustment, Debt Retire
Slide 15: Application Timeline for CCHP
Application Timeline for CCHP • Beginning July 1, 2018, CCHP projects that use supplied fossil fuels to generate electricity will no longer be eligible to apply for incentives under the saveONenergy program. • The following deadlines apply to project applications for fossil- fueled CHPs that are sub
Slide 16: Application Timeline for CCHP
Application Timeline for CCHP • The timeline is set to give the customer/consultant enough time to revise the application package and get it reviewed by July 1, 2018 if the Independent Electricity System Operator's Technical Reviewer (IESO-TR) does not deem the application complete at the submission
Slide 17: Eligibility of BMG post July 1, 2018
Eligibility of BMG post July 1, 2018 • Two types of BMG systems will stay eligible for incentive: Waste Energy Recovery Non Fossil-fueled CHP • Incentive up to 70% of the project cost is available from the LDC • Eligible CHP systems that displace both electricity and natural gas might receive in
Slide 18: Why Islanding BMG?
Why Islanding BMG? Note: The following information apply to Hydro One customers only; they may or may not apply to other LDCs’ customers. • A potential solution when: a. Project fails the short-circuit capacity test b. Parallel connection cost is too high • Points to consider: a. In case of islandin
Slide 19: Load Consideration
Load Consideration • When BMG displaces an EXISTING LOAD: • If the BMG reduces the customer’s load, Hydro One may reduce the customer’s assigned capacity at the distribution facility in accordance with our Conditions of Service. o If the customer wants to connect more load in the future, they would
Slide 20: Load Consideration – Cont’d
Load Consideration – Cont’d • When BMG displaces a NEW LOAD: • Examples include expanding the building or adding more production lines • A new load, if islanded, will not be subject to short-circuit capacity or thermal capacity test • Form B (Connection Impact Assessment) required. However, no upfro
Slide 21: Islanded BMG Configuration
Islanded BMG Configuration • Complete islanding, where the generator and its associated loads never connect or remain parallel with the grid: 21 February-22-18
Slide 22: New Guidelines
New Guidelines In the next couple of weeks, IESO is expected to issue new guidelines to set out the parameters for the eligibility and reviewing the following systems for incentive under PSU program: • New Construction BMG Systems • Facility must be one of the following: i. a new facility; ii. a new
Slide 23: BMG Application Process
BMG Application Process Stage PI/SCP Incentive Application Process Project Incentive Submit complete Application package: Application (1) • Signed Application Form • Confirmation of available capacity to connect to grid (n/a for islanding) • Supporting Study (Funded DES or Unfunded) • 12 months of n
Slide 24: BMG Application Process – Cont’d
BMG Application Process – Cont’d Stage PI/SCP Incentive Application Process Project Incentive • Hydro One and Participant sign contract Contract (1)(2) Measurement and Based on M&V Plan details, the technical review team verifies the following: Verification Reporting • Confirms In-Service Date and s
Slide 25: FAQ - Application Process
FAQ - Application Process • How do I check that capacity is available for a BMG project? • Electrical: check online capacity calculator https://www.hydroone.com/business- services/generators/station-capacity-calculator • Natural Gas: check with Union Gas or Enbridge • Other fuels: check with vendor
Slide 26: FAQ - Application Process – Cont’d
FAQ - Application Process – Cont’d • How do I ensure the application package is complete? • Review program rules and guidelines posted on Hydro One and saveONenergy websites • Reach out to Hydro One’s Conservation Account Managers • What steps need to be taken before signing a BMG project incentive
Slide 27: FAQ - Application Process – Cont’d
FAQ - Application Process – Cont’d • Is HONI Accepting DES applications for gas fired CHP now? • Generally no, unless there’s a very good business case. • Applicants are strongly suggested to submit Project Incentive Applications and conduct the engineering study as part of the application process.
Slide 28: Thank You!
Thank You! Please type in your questions in the chat bar OR Email them to the following address (to be replied later) CDMindustrial@hydroone.com