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Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006
Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006
Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006
Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006
Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006
Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006
Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006
Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006
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Statement of Work - RFP No. 739 - Renewable energy - 12-11-2006

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  • 1. Statement of Objectives Technology Confirmation/Innovation 2007 Renewable Energy Programmatic Request for Proposals December 11, 2006 Part A. General A.1 Background Information on Bonneville’s Office of Technology Confirmation/Innovation and on Technology Roadmaps. The Bonneville Power Administration (BPA) is a federal power marketing agency that transmits and markets the power from 31 federal dams and one nuclear power plant. BPA also purchases power from 5 wind farms. Recently, BPA implemented a new program to meet its strategic needs to reinvigorate and focus its research and development (R&D) agenda. As part of this effort, BPA created the Office of Technology Confirmation/ Innovation (TC/I) and appointed its first Chief Technology Innovation Officer in 2005. The TC/I initiative will create an annual cycle of research and development funding based on various “technology roadmaps.” Technology road-mapping is a form of technology planning that will be used to inform and guide the Agency’s research and development agenda. The main benefit of technology road-mapping is that it provides information to make better technology investment decisions by identifying critical technologies and technology gaps. This information will then be used to identify ways to leverage Agency research and development (R&D) investments to bridge these gaps. Technology Roadmaps were developed in the major operational areas of the Agency: Renewable Energy, Hydro, Transmission, Energy Efficiency and Security. A.2 Goal of this RFP The 2007 Renewable Energy Request for Proposals (RFP) is based on a BPA Renewable Energy Technology Roadmap (RETR); see Renewable Energy Technology Roadmap that was developed in 2006. The Roadmap identified the need for research and development (R&D) for new renewable energy technologies for BPA and the utilities that it serves in the Pacific Northwest. The goal of this RFP is to select R&D projects which assist in management of the intermittent nature of transmission grid connected renewables such as wind or advance research on ocean wave or in-stream tidal technologies. This RFP is intended to produce R&D that is in addition to the R&D already undertaken by BPA and other interests in BPA RFP No. 739 Statement of Objectives Attachment 3, Page 1 Renewable Energy Technology Program
  • 2. renewable energy. This RFP is not intended to purchase power from a renewable resource(s) for BPA This SOO highlights the key objectives of the program which will enable the offerors to propose the Contractor Statement of Work (CSOW). It is required to be used by offerors to develop the Contractor Work Statement (CSOW) and other documents supporting and defining the contractor’s proposed effort. This CSOW will then be incorporated into the contract. A.3 Funding The funding to support the Renewable Energy RFP comes from the sale of renewable energy credits from BPA’s existing power purchase agreements with renewable energy projects. For 2007 the current funding available is over $1M. BPA may fund up to 65 percent of a project’s cost, with the maximum BPA will spend being $500k per project proposal. For example, if a proposal is received that requires $1M in funding; the maximum that BPA would consider providing would be $500k. If the same $1M project only needed 20% of total project funding, BPA would consider funding up to the requested amount, or $200k in this example. At a minimum, BPA will not fund any project with a total cost that is less than $25k. BPA will only fund R&D proposals that have established other sources of relevant funding on a cost share basis. A.4 Types of R&D Activities As identified in the Renewable Energy Technology Roadmap, the goal of this RFP is to select R&D projects which manage the intermittent nature of transmission grid connected renewables such as wind or advance research on ocean wave or in-stream tidal technologies. Some of these activities can focus on advancing the fundamental science and engineering of a particular resource technology, others may focus on demonstration projects that enhance the commercial viability and acceptance of the technology, and some may concentrate on solving the technical challenges associated with integrating these types of intermittent resources into the power grid. From the Renewable Energy Technology Roadmap discussion in para. B.1, the needs identified by BPA are (for example, but not exclusive to): 1. Utility management of grid connected intermittent energy to include: the reduction of forecasting and scheduling error, reduce reserve (capacity) requirements, technology that makes renewables smaller consumers of ancillary services (regulation, load following), congestion management, renewable facility redispatch and output control, tools to manage intermittency, optimization of generation and transmission assets, etc.; 2. Wave/tidal projects, which are not very efficient at the present time and exist in a corrosive environment that has the same issues as #1 above. Of additional interest will be: efficiency improvement, anti-fouling technologies, turbine designs, BPA RFP No. 739 Statement of Objectives Attachment 3, Page 2 Renewable Energy Technology Program
  • 3. permitting, mitigating environmental impacts, innovative control and protection systems, transmission integration, etc. 3. Technologies that reduce renewable energy distributed generation impacts on low voltage systems, which reduce or mitigate load variability and support ancillary services in the management of intermittency. 4. On-site (short-term) energy storage; 5. Off-site (longer term) energy storage; Table 1 (see below) summarizes some examples of the kinds of R&D proposals that might be appropriate. It is a broad list of ongoing and proposed R&D activities in wind, ocean wave and in-stream tidal that BPA may elect to co-sponsor and fund, sponsor and lead, participate in demonstration projects, or monitor for future consideration (not fund at the present time). Table 1 – Potential R&D Activities for Wind, Ocean Wave and In-Stream Tidal Resources Area of RD&D Activity Recommended BPA RD&D Actions Reference Material (document location) Wind integration research – Examples Support research (lead), technical approaches and RETR - Pages include R&D aspects of demonstration projects to support this emerging 20-27 BPA/NWPCC Northwest Wind critical area of integration, impact mitigation and Integration Action Plan utility optimization of intermittent resources (see http://www.nwcouncil.org/energy/Win pg. 6) d/Default.asp , CEC sponsored PIER Intermittency Analysis Project http://www.energy.ca.gov/pier/confere nces+seminars/2006-08- 15_RPS_workshop/index.html , and wind forecasting for PBL and TBL wind projects. Ocean Wave Projects Support research, technical approaches and RETR - Pages demonstration projects 35-38 In-Stream Tidal Project Support research and technical approaches RETR - Pages 45-55 Demand response technologies that Identify optimal mix of EE RD&D activities, Energy support active load shaping challenges, potential costs, etc., that support Efficiency techniques, which facilitate integration integration of intermittent resources. Roadmap of intermittent renewable resources. Transmission technologies that Identify optimal mix of Transmission RD&D Transmission enhance communication with and activities, challenges, potential costs, etc., that Roadmap provide direct control of renewable support integration of intermittent resources. BPA RFP No. 739 Statement of Objectives Attachment 3, Page 3 Renewable Energy Technology Program
  • 4. Area of RD&D Activity Recommended BPA RD&D Actions Reference Material (document location) resources Short term storage technologies that Identify optimal mix of RD&D activities, potential Pages 24-27, can load factor short term fluctuations costs, etc., that support short term storage Appendix C & in power from intermittent resources. capabilities and the integration of intermittent Transmission Technologies may include: super- resources. Roadmap capacitors, flywheels, batteries, super conducting magnetic energy storage (SMES). Long term storage technologies that Identify long term storage opportunities, potential Pages 24-27 can provide reserves during extended sites, costs, etc. that support long storage Appendix C periods of low resource availability. capabilities and the integration of intermittent & Hydro Technologies may include: Hydro resources. Operations storage, compressed air energy storage Roadmap (CAES) and closed cycle pumped storage. A.5 Background Information on Identifying R&D Activities In identifying the critical renewable energy technologies from this year’s Portfolio development process, TC/I decided to narrow the scope of this RFP to new technologies which lessen the intermittent effects of wind or advance research on ocean wave or in- stream tidal. This decision was made for the following reasons: • The higher level business targets and technical challenges identified in the Renewable Energy Technology Roadmap workshops focused on the intermittent nature of wind and the technologies that enhance the region’s ability to integrate wind, mitigate wind’s impacts and maximize its value to the Region. • Wind, ocean wave and in-stream tidal are currently attracting high levels of commercial interest worldwide, including the active interest of BPA customers, PNW government agencies, the national labs and renewable energy advocates. • Wind is a rapidly maturing industry with more than 2,000 megawatts online or under active development in the PNW and another 2,000 megawatts in the planning stages. Over the long run, the Northwest Power and Conservation Council (NWPCC) estimates that the region may see as much as 6,000 MW of wind resource integrated into the Region’s generation mix by 2020, which may occur substantially sooner, according to the NWPCC Wind Integration Action Plan that is now underway. • Ocean wave and in-stream tidal technologies, although in their pre-commercial state at this point in time, are moving forward at a rapid pace. Studies are now underway to site prototype projects at several locations in Oregon, Washington and California. BPA RFP No. 739 Statement of Objectives Attachment 3, Page 4 Renewable Energy Technology Program
  • 5. • The Pacific Northwest (PNW) is naturally endowed with high quality wind, wave and in-stream tidal resource sites. • There is a sense of urgency associated with the challenge of integrating the output generated from renewable resources that produce electricity for the FCRPS or utilize the transmission system. The current pace and scale of wind development has raised legitimate concerns regarding the ability of the FCRPS to assimilate large amounts of intermittent resources, for example, providing the generation resources for capacity and the ancillary services needed by transmission. Though different than wind, ocean wave and in-stream tidal may have power system impacts as well. Roadmaps for geothermal and biomass renewable resources will be developed in future cycles of the TC/I Renewable Energy Portfolio development process, due to the 2007 emphasis on intermittency and efficiency. A.6 Location of Project. A requirement for an acceptable R&D renewable resource proposal is that it fulfills BPA’s objectives to be a leader in the application of technologies that provide benefits to BPA, its customers and the Region (as listed in A.4 and discussed in the TC/I Renewable Energy Technology Roadmap). Project sponsors will need to demonstrate that submitted projects are meeting the challenges of BPA (see section A.4). Consequently, R&D projects would need to be located in the Pacific Northwest (as defined by the Northwest Power Act, 16 U.S.C. § 839a(14)) and benefit the customers BPA serves, though supporting research that can draw from a multitude of informational and technological resources worldwide. A.7 BPA Furnished Property or Services: With the limited budget BPA has available for 2007 (see A.3), proposers should not expect BPA to support the purchase of substantial equipment (for example generation equipment such as buying an ocean buoy or wind turbine, control systems, cabling, transformation or interconnection to the BPA transmission system). BPA will provide a proposal review in a timely manner. BPA may provide limited services needed for the successful completion of the project such as; access to a substation, field support, data collection, etc. The proposal must explicitly identify any government equipment or services that may be needed. A.8 Definitions: (alphabetically) BPA – Bonneville Power Administration FCRPS – Federal Columbia River Power System FERC – Federal Energy Regulatory Commission PS – BPA Power Services (generation) PNW – Pacific Northwest (as defined by the Northwest Power Act, 16 U.S.C. § 839a(14)) section 3(14), “the area consisting of the states of Oregon, Washington, and Idaho, the portion of the State of Montana west of the Continental Divide, and such portions of the States of Nevada, Utah, and Wyoming as are within the BPA RFP No. 739 Statement of Objectives Attachment 3, Page 5 Renewable Energy Technology Program
  • 6. Columbia River drainage basin and any contiguous areas, not in excess of seventy-five air miles from the area referred t in (the Act), which are a part of the service area of a rural electric cooperative customer served by the (BPA) Administrator.” Gap – utility need that is not met today or will not be met in the future with the technology currently in service R&D – Research and Development RETR – Renewable Energy Technology Roadmap RFP – Request for Proposals Stage Gate – a decision point on whether a project is proceeding as planned and a go, no-go or hold decision is made. TS – BPA Transmission Services (transmission) TC/I – Technology Confirmation/Innovation Part B. Technological Approach/Tasks B.1 Requirements: The TC/I Renewable Energy Technology Roadmap provides primary guidance for all R&D requirements, as follows: • Enhancing the capability of the electric system to assimilate utility scale intermittent wind and improves the efficiency and the integration of intermittent ocean/wave and tidal energy resources. • Focusing on utility scale wind, ocean wave or in stream tidal issues as listed in A.4 along with systems needed by a modern utility to support their integration. • Identifying the technological gaps and potential solutions that stand in the way of deploying these technologies. • Maximizing the market value of renewable energy to the Federal Columbia River Power and Transmission systems. B.2. Performance Reporting Requirements: A Stage Gate reporting format will be established for each proposal that is contracted. As mentioned above, each proposal must have identifiable review criteria along the timeline (see B.4) of its implementation (every three months after work begins, for example) that helps the TC/I program and its peer review team evaluate that the project goals and requirements (as identified in the List of Deliverables) are being met. These Stage Gates will be used to assess the expected progress of each project to meet the List of Deliverables and reach a go, no-go or hold decision. If the established Stage Gates are not met (as defined by the contract that is developed from the proposal), then the project will be tabled and not continued, unless the identified Stage Gate can be remedied to the satisfaction of BPA. It will be subject to BPA RFP No. 739 Statement of Objectives Attachment 3, Page 6 Renewable Energy Technology Program
  • 7. BPA’s sole discretion whether a project is allowed to continue to contract completion at each Stage Gate. B.3 Deliverables: Along with proposal guidelines described in Attachment 1 to the RFP (and linked to the TC/I Renewable Energy Technology Roadmap – see link at A.2) each offeror must discuss the expected deliverables of the project, including but not limited to: • All supporting data in an electronic format acceptable to BPA • Expected functionality and support of any hardware and or software as applicable, along with full documentation of its use and repair, as acceptable to BPA. • Expected performance standards • How the proposed project will be integrated in common and established utility systems or innovative approaches or modifications to common and established utility systems. • How established utility processes and procedures will be impacted • The appropriate testing and/or evaluation methodology if applicable • A final report with lessons learned and next steps for the project. Along with the List of Deliverables each proposal must have identifiable review points along the timeline of its implementation (see B.4.a) to help determine the successful progress of the project. These review points, called “Stage Gates” will be used to determine whether or not BPA should continue with the project. For example, if an accepted project was to measure the impact of a wave generation buoy on the ocean floor the first stage might be to install measurement equipment on the ocean bottom where the buoy is moored within a certain time after the start of the project. If after this time has elapsed the instrumentation was not in place, then the project would be stopped since the identified Stage Gate requirement was not met. It will be subject to BPA’s sole discretion whether a project is allowed to continue to contract completion at each Stage Gate. BPA understands the unique nature of many R&D renewable energy technologies. BPA believes meaningful metrics can be established to track a project’s success even though an expected outcome is not always certain in a research and development effort. Therefore, BPA TC/I staff and its peer review team will make every effort to consider R&D proposals that, until the proposal’s research is underway, may have an uncertain outcome. BPA RFP No. 739 Statement of Objectives Attachment 3, Page 7 Renewable Energy Technology Program
  • 8. B.4 Time Schedule: Management Stage Gate reporting schedule Stage Gates will be project specific and identified in the contract, for example, every 3 months. Part C Inspection and Acceptance (Quality Assurance) Any potential problem jeopardizing the successful outcome of the project must be reported to BPA as soon as possible and substantially before the next Stage Gate or scheduled review. (END OF STATEMENT OF OBJECTIVES) BPA RFP No. 739 Statement of Objectives Attachment 3, Page 8 Renewable Energy Technology Program

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