Aep_conduitesaepassainissemeggvvhccnt.pdf

Dfggh conduit

1. Proud Sponsor -25TH Annual Ohio Energy Management Conference
WORKSHOP Q
Value Stacking with Distributed Energy Resources
and the Benefits of Behind-the-meter Generation

2. PRESENTATION OVERVIEW
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Value stacking
Energy pricing trends
Behind- the-meter (BTM) technologies
Case studies
oSolar
oNatural gas fired engine
Energy storage

3. VALUE STACKING
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Transmission peak shaving
Capacity peak shaving
Ancillary services revenues
Energy savings
Distribution savings
Value of resilience
Target each bill line item

4. VALUE STACKING –DELIVERY CHARGES
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Transmission
(1 or 5 CP)
Capacity
(5CP)
Distribution
(12 Monthly Peaks)
Utilities recover the entire fixed cost of power plants and transmission grid investments during the annual
peak usage hours (either 5 Coincident Peaks (CP) or 1CP).

5. ENERGY PRICING TRENDS
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5CP (consistent across PJM)
1CP or 5CP
(dependent on transmission owner)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
2012/132013/142014/152015/162016/172017/182018/192019/202020/212021/22
PJM Capacity Rate History (Avg. 22%)
$0
$40,000
$80,000
$120,000
$160,000
$200,000
2012201320142015201620172018201920202021
S/MW-Year
PSEG Transmission Rate History (Avg. 18%)

6. ENERGY PRICING TRENDS
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$5,163
$13,930
$16,022
$19,175
$23,763
$28,165
$31,311
$32,143
$33,000
$34,280
$42,548
$45,693
$50,128
$50,128
$53,072
$61,729
$66,744
$75,204
$95,597
$172,189
$0 $50,000 $100,000 $150,000 $200,000
OVEC
First Energy - APS
PE (PECO)
Dayton (DAY)
East Kentucky (EKPC)
PEPCO, SMECO (PEPCO)
BC (BGE)
Duke (DEOK)
DPL, ODEC (DPL)
Com Ed (CE)
Rockland (RECO)
AE (AECO)
MAIT (PENELEC)
JCPL
Duquesne (DLCO)
Dominion (Dom)
ATSI, AMPT (ATSI)
PPL, AECoop, UG (PPL)
AEP
PSEG
2021 PJM Tranmission Costs -$/MW-Year
State Utility
Transmission (NSPL)
Calculation Method
IL ComEd 5CP
OH
AEPOH 1CP
Dayton 1CP
Duke 1CP
Cleveland Ill -FE 5CP
Ohio Ed - FE 5CP
Toledo Ed -FE 5CP
PA
Duquesne 1CP
MetEd/Penelec -FE 5CP
West Penn -FE 5CP
Penn Power - FE 5CP
PECO 5CP
PPL 1CP

7. BTM TECHNOLOGIES
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Solar
-Renewable/carbon-free
-Capacity
-Transmission
-Other $/kWh charges
Energy storage
-Capacity
-Transmission
-Ancillary
-Solar shifting
Natural gas engine
-Capacity
-Transmission
-Ancillary
-Resilience

8. CASE STUDY –CITY OF SHELBY SUSTAINABILITY
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AEP OnSitePartner’s Solution
•2.5 MWs single- axis solar tracking system
•30-year power purchase agreement (PPA) with
long-term balance of power supply agreement
•Lifetime savings estimated at ~$3.0M
•Contract signed August 2019, facility placed in
service December 2019
•Designed for future battery storage expansion
•Pollinator friendly vegetation
Customer Need
•Municipal utility in north central Ohio
•Cost-effective solar project generating savings over
other energy supply options
•Long- term price certainty with potential battery
storage expansion
•Pollinator friendly

9. CASE STUDY –CITY OF SHELBY SUSTAINABILITY
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Adjusted restricted
area
Wetland
area
discovered
Reserve space
for future
battery energy
storage system
(BESS)
Temporary
laydown area

10. CASE STUDY –2020 PERFORMANCE
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Project Value Stack
•Shelby owns their own distribution system so they are able
to realize three value streams directly from the project
•Pollinator takes ~two seasons to develop
•Total benefits generated in 2021:
Transmission peak shaving
Capacity peak shaving
Energy savings
0 0.25 0.5 0.75 1 1.25 1.5 1.75 2
Average PLC 5CP
NSPL OFFSET
Shelby Solar 2020 Performance (MW)
Energy + Capacity + Transmission = ~$190,000!

11. CASE STUDY –NEW JERSEY NATURAL GAS ENGINE
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AEP OnSitePartner’s Solution
3.2 MW natural gas generation
•Retail energy supply agreement including resiliency
•Ten-year fixed price per kWh
•Ten-year savings estimated at ~$2.0M
•Placed in service – December 2019
Customer Need
•Medical testing facility located in New Jersey
•Backup power generation capable of serving
expanding operations
•Reduce overall electricity costs
•Simplified approach preferred

12. CASE STUDY –2020 PERFORMANCE
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Project Value Stack
•Maximized value stack –five value streams!
•Capacity benefits:
· Engine low coolant trip – missed third CP
•Transmission benefits alone will generate ~$300,000
Transmission peak shaving
Capacity peak shaving
Economicdemand response
Energy savings
Distribution savings
Value of resilience
0
1
2
3
1 2 3 4
PJM PLC 5CP
Engine genTotal load
0
0.5
1
1.5
2
2.5
3
1 2 3 4 5
PSEG NSPL (MW)
Engine genTotal load

13. ENERGY STORAGE
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Benefits of Storage
•Diverse applications
•Peak reduction
•Energy shifting
•In-front-of-the-meter participation
•Short term backup/resiliency
•Incentives when paired with solar
•Investment Tax Credit (ITC) eligible based
on percent charged by solar with 25% cliff
•Declining costs
•Cost of lithium based systems continue to
decline year-over-year (YOY)

14. ENERGY STORAGE – TRANSLATE THE STACK
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Transmission peak shaving
Capacity peak shaving
Ancillary services revenues
Energy savings
Distribution savings
Incentives and rebates
Operations & Impacts
Accuracy
Throughput
Safety
Life cycle impacts
Degradation curve
Warranty
Performance
guarantees
Dispatch platform
Modified Stack

15. ENERGY STORAGE – STATIONARY U.S. MARKET
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https://energystorage.org/resources/industry-resources/us-energy-storage- monitor

16. THANK YOU
Peter Protopappas
AEP OnSitePartners
[email protected]
O: 614.583.3917
M: 614.204.8280
AEPonsitepartners.com