Bringing Renewable Energy into the Mainstream Rocky Mountain Electric Utility Exchange Conference Aspen, Colorado October 10, 2013

Transcription

1 Bringing Renewable Energy into the Mainstream Rocky Mountain Electric Utility Exchange Conference Aspen, Colorado October 10, 2013 Rod Nikula COO Power Supply Wright-Hennepin Cooperative Electric Association Rockford, MN

2 Wright-Hennepin (WH) Cooperative Electric Association WH Board of Directors WH Electric: est Northwest of Twin Cities 47,000 electric accounts WH Security: est Over 11,000 retail accts Nearly 62,000 wholesale accounts

3 WH Responsibilities Keep ALL member rates affordable No cost shifting to other members Provide reliable energy Enhance the quality of life for our customers Bring renewable and alternative energy sources into mainstream

4 LM Products Offered WH Product Development 60% member participation Solar & Battery Storage Interruptible Generation 2010 Water & Space Heating and Cycled A/C

5 WH and Renewables WH s demonstration projects KW wind turbine KW solar array KW tenksolar battery storage 4.6 KW output, 11.8 KWH total storage capacity WH Energy Park Paired with tenksolar array WH gives away the energy each month

6 WH Observations Wind Energy Not enough local wind 5-10% Capacity Factor Best for our G&T s to provide wind energy Wind production: Best in spring and fall Rarely available during a peak load condition Needs natural gas power plant to fill the voids Solar Energy Better for WH members 15-18% Capacity Factor Roof or ground mounted No moving parts Less impact on neighbors Solar power production: Peaks mid-day WH peaks from 4 9 PM Not as good on cloudy days Needs battery storage 6

7 The battery storage solution Silent Power WH Benefits Store wind and base load energy at night Store surplus mid-day solar energy for evening peak New WH Markets Whole house load management A/C, appliances Small business load management Premium Power reliability 7

8 Striking the Right Balance There is no silver bullet Coal/natural gas Nuclear/natural gas Wind/natural gas Solar/storage

9 WH Community Solar

10 Community Solar with Battery Storage First in the USA Utility Controlled Battery Storage

11 Solar and Battery Storage Solar reduces midday peaks Batteries reduce the evening peak

12 WH Solar Community Project #1 Build projects, based on Member commitment Modular Concept 32.5/37 KW of solar panels Battery storage 36 KW of capacity 94.5 KWH of energy Meets MN 40 KW net metering rules

13 The Cooperative s Solar Program Buy a slice, or up to full amount of annual usage Receive KWH credit on bill Hedge against rate increases Order it on-line, or by phone No bidding, no hassle Maintained by the co-op Includes solar and storage

14 Yard Sign

15 A Solution to Many Issues Hotly debated issues 1. Ramping & Capacity 2. Cost Shifting 3. Stranded Investment 4. Power Quality

16 1. Ramping and Capacity The Duck

17 SOLUTION: Store & Deploy Batteries discharged during peak reduces total system demand Excess PV when house load is low charges batteries House Load (KW) Solar PV (KW) Net Usage with Battery

18 Battery storage reduces peak demand (Utility Controlled) Lost sales Reduced Demand 18

19 2. Cost-Shifting Rate (Cost / KWH) All power purchase costs for rate class kilowatt-hour sales for rate class =11 C/KWH Rates would increase if just solar w/o battery SAME power purchase costs for rate class LESS kilowatt-hour sales for rate class =14 C/KWH

20 Raise the Basic Charge? It s a Losers Game Look at the telco s They raised the basic charge for a land line The world went wireless!

21 Low income members cannot be harmed by cost shifts Mathematical problem If the denominator goes down Reduced sales The numerator must come down Must reduce costs Do the math!

22 Reducing the Numerator WH is a distribution cooperative WH purchases power from G&T Co-ops We pay a demand rate and energy rate Peak demand occurs between 6 and 7 pm Battery storage reduces peak demand, which reduces the cost

23 3. Stranded Investment! Shoot ahead of the duck 1 house = 1,000 KWH/mo. 8 KW solar = 1,000 KWH 32 KW solar = 4 homes 10,000 Community Solar projects to serve 40,000 WH members It won t happen overnight!

24 The Real Duck! 27 GW of Coal plants are retiring We better get started! Source: EIA, 2012

25 Housekeeping Issues Net Metering Wasn t meant for selling electricity to others Cap solar panels to the annual KWH purchases Allow credits on a monthly basis Value of Solar Community Solar addresses the issue

26 4. Power Quality Intermittent supply Clouds are the worst Look at the output Sudden swings in power Problem magnifies when a whole neighborhood has solar

27 Storage to the Rescue! Firm supply of power Peaks are stored

28 Wrapping Up Community Solar with Battery Storage Projects: Put your utility in a leadership role Offer renewable energy services that the customers expect us to provide No regrets strategy

29 WH believes that this is. One of the most important achievements an electric cooperative could score at this time in our history

30 Star Tribune Business Section Crowd-funding for solar power, David Shaffer, Star Tribune, January 14, 2013

31 In the news USA Today, St. Cloud Times, local newspapers, industry publications

32 WH Responsibilities Keep ALL member rates affordable No cost shifting to other members Provide reliable energy Enhance the quality of life for our customers Bring renewable and alternative energy sources into mainstream

33 Bringing Renewable Energy into the Mainstream Rod Nikula COO Power Supply (763) Wright-Hennepin Cooperative Electric Association Prepared for Rocky Mountain Electric Utility Exchange Conference October 10, 2013