HOMER Energy webinar on modeling energy storage in hyrid renewable energy systems and microgrids. November 2018

1. November 14, 2018
Closing Customers. Reducing Risk, Phased Approach.
HOMER Energy
Marc Lopata, PE

2. US and Caribbean markets, St Louis HQ
Portfolio over 500 projects totaling over 120 MW
80+ battery storage plants, 10 microgrids in US and Caribbean
LEED & Energy Star projects from 10,000 sf to 9,000,000 sq.ft.
Solar Power World Magazine 2018 – #147 overall and #1 for off-grid / microgrids
Only NABCEP-Certified Photovoltaic System Inspector in Caribbean Region
▪ St Louis Rams
▪ Hertz Car Rental (2)
▪ Prime Minister of Jamaica
▪ Fontainebleau Resorts
▪ Nestle Purina PetCare (2)
▪ Peter Island Resort & Spa, BVI
▪ Pageant Theatre (2)
▪ United Health Care / MetLife (2)
▪ Harrah’s Entertainment
▪ Sheraton Hotels
▪ Enterprise Rent-A-Car (4)
▪ US Army Corps of Engineers (4)
▪ Tropigas Panama
▪ Oil Nut Bay Resort, BVI
▪ Confidential client, NY
▪ St. Louis Cardinals (20+)
▪ US Bank (9)
▪ St Louis Science Center (3)
▪ Novus International (2)
▪ Washington University (20+)
▪ Missouri Botanical Garden (3)
▪ Drury Hotels (14)
▪ University of Missouri St Louis
▪ MasterCard International (4)
▪ Eastern Caribbean Central Bank
▪ McCormack Baron Salazar (3)
▪ Yanbu Royal Commission
▪ Missouri Univ of Science Tech
▪ Ameren Missouri
▪ Confidential, Bahamas (3)
▪ IKEA
▪ Schlafly Bottleworks
▪ Anheuser Busch / InBev (2)
▪ Jamaican Government House
▪ Cooper Island Beach Club (2)
▪ World Bank (3)
▪ Moonrise Hotel (4)
▪ Express Scripts (2)
▪ Webster University (5)
▪ Illinois Institute of Technology (4)
▪ Commerce Bank (5)
▪ City of Columbia Water & Light
▪ Prairie Power Coop Utility (2)
▪ Central Iowa Power Company (6)
▪ Confidential client, BVI (2)

3. Caribbean Island Microgrid
• Hotel and microbrewery
• Truly “islanded” – was 100% diesel electricity
• Diesel electricity is $0.40/kWh to $0.55/kWh
• Now solar-storage-diesel hybrid
• 92% to 95% solar penetration
• Renewables and energy efficiency
• Microgrid electricity $0.23/kWh
• $1M higher property value (lower OpEx, higher NOI)

4. • Increasing certainty.
• De-risk the project.
• Use HOMER for Basis of Design.
• Uncertain load profile.
• Uncertain design approach.
• Uncertain construction costs.
• Uncertain owner goals.
Problem Solving with HOMER
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

5. • Daily energy? Maybe maximum power.
• Convert diesel fuel purchased to electricity produced: 80 gpd average ~ 1000 kWh
• No energy efficiency measures.
• Random advise from neighbors, manufacturers, crystal ball.
• Skeptical.
Meet the Island/Resort Owner
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy
HourlyPower[kW]
'-
11
22
33
44
Time of Day (24-hr)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
MIN 30 kW
MAX 45 kW
“RESORT” PROFILE, AREA UNDER THE
CURVE ENERGY ~ 1,000 KWH

6. • Reduce energy expense.
• Improve reliability.
• Improve survivability.
• Reduce noise.
Desired Project Outcomes
• Improve air quality.
• Improve financial resiliency.
• Gain marketing advantage.
• Attract investors.
• Create local career jobs
• Stop sending 20% of GDP to Venezuela
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy
Investment Metrics, Unlevered
19% Internal Rate of Return, IRR
5.5 yrs Straight-line payback
$ 2,618,132 Net Present Value
18% Cash-on-cash return, Yr-1

7. • Original conditions – 100% diesel electricity – $0.52 / kWh
• LCOE – $0.29 / kWh (prior to actual project costs and EEMs)
• HOMER optimizes PV, storage, genset (and wind turbines)
LCOE Analysis with HOMER
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

8. www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy
Phase-2 Project

9. Step 1: Average daily energy consumption
• Fuel consumption
• Peak power correlation based on use profile
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

10. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

11. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

12. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy.
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

13. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy. 230 to 250 kW
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

14. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy. 230 to 250 kW
Step 4: LCOE at 70% PV penetration (80% with losses)
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

15. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy. 230 to 250 kW
Step 4: LCOE at 70% PV penetration (80% with losses) 160 kW
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

16. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy. 230 to 250 kW
Step 4: LCOE at 70% PV penetration (80% with losses) 160 kW
Step 5: Size the storage plant at 3 times the power capacity.
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

17. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy. 230 to 250 kW
Step 4: LCOE at 70% PV penetration (80% with losses) 160 kW
Step 5: Size the storage plant at 3 times the power capacity. 400 kWh
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

18. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy. 230 to 250 kW
Step 4: LCOE at 70% PV penetration (80% with losses) 160 kW
Step 5: Size the storage plant at 3 times the power capacity. 400 kWh
Step 6: Estimate price, at $3,000 to $6,000 per kW.
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

19. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy. 230 to 250 kW
Step 4: LCOE at 70% PV penetration (80% with losses) 160 kW
Step 5: Size the storage plant at 3 times the power capacity. 400 kWh
Step 6: Estimate price, at $4,000 to $5,000 per PV-kW. $ 650k-800k
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

20. Step 1: Average daily energy consumption 1,000 kWh average
• Fuel consumption
• Peak power correlation based on use profile 50 kW average
Step 2: Add 10% r/t efficiency loss.
• Typical is 15%, in/out of the batteries.
Step 3: PV power capacity required to produce daily energy. 230 to 250 kW
Step 4: LCOE at 70% PV penetration (80% with losses) 160 kW
Step 5: Size the storage plant at 3 times the power capacity. 400 kWh
Step 6: Estimate price, at $4,000 to $5,000 per PV-kW. $ 650k-800k
Step 7: Financial analysis, then HOMER modeling phase
Microgrid Sizing & Cost
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy

21. No/low-cost measures.
• Turn out the lights.
• Schedule high-demand equipment during peak sun hours.
Short payback upgrades and retrofits.
• LED in areas lit more than 6-8 hours a day, or particularly difficult to replace lamps.
• Light switches / occupancy sensors in back of house areas that are low occupancy.
• Variable frequency drives for motors not requiring 100% power all the time.
Energy Efficiency vs Renewables
www.Azimuth.Energy NABCEP-Certified Solar Installer + Inspector www.SolarIsland.Energy
EXAMPLES
• 100 x 100 W incandescent lamps on during the day is
25-30 kW of PV capacity and 75-100 kWh of battery,
costing around $100-$150k.
• Upgrade one 5 HP motor to premium efficiency is a $5-
$10k reduction in microgrid cost

22. Marc Lopata, PE
314.378.1913
Marc@Azimuth.Energy