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Micah Kotch, Director NY Prize
Strategic Advisor for Innovation
NYSERDA
New York is
the birthplace
of the modern
electric grid
2
New York
3
“We were all part of a majestic endeavor
and we were making history happen.”
4
• Sense of urgency
• Extreme weather
events
• Aging
infrastructure
• Increased energy
demand
What’s Different Now?
5
• Power outages
cost New Yorkers
$9 billion per year
• New Yorkers pay
among the highest
average rates for
electricity in the U.S.
Extreme Weather – The New Normal
6
NY Rising Communities
7
Empowering Customers
8
What is a Microgrid?
9
A group of interconnected
loads and distributed
energy resources that
form a single controllable
entity capable of
operating continuously in
both grid-connected and
islanded mode.
Not New . . . Not Backup Generation
NYSERDA Microgrid Study Benefits
• Economic
• Reliability & Power Quality
• Environmental
• Security & Safety
http://on.ny.gov/1ukZOa8
10
NY Prize: A New Generation of Local Power
11
• Pipeline of ~25
feasibility studies
• 10 designs selected
• At least 5 projects
constructed
• Replicable strategies
(“playbook”) for
communities in NY
and beyond
Award Process
12
~25 awards for
studies
($50 - $100K)
8-10 Awards
($500K – $1M)
$1-3m
$5-10m
Allocations
$25-35m5-7 Awards
($5-$7M)
Critical project partners:
Municipalities and Utilities
All communities enter/apply to competition and
are evaluated at each stage by external judges
Stage 1
Awards to Conduct
Feasibility Assessments
Stage 2
Feasibility Evaluated
Awards for Audit Grade
Design
Stage 3
Designs Evaluated
Awards for Build-out/
Operation
Threshold Audit
Grade Design
Criteria
Threshold
Quantitative Criteria
Audit Grade Design
Review
Community Roadmap
13
Step 2:
Identify Project Site
Step 3:
Conduct Feasibility Assessment
Step 4:
Conduct Detailed Design
Step 5:
Acquire Financing,
Approvals, and
Construct
Step 1:
Set Project Goals, Organize, and Educate Stakeholders
• The overall cost and benefits of the project
• The project’s contribution to public need (increasing
safety and quality of life for residents in an
outage situation)
• The technical and operational performance of the project
• The demonstrated reliability of the proposed
microgrid configuration
• The use of clean and renewable generation resources
in the project
• Overall financial and managerial capabilities of the
developer
Evaluation Criteria
14
1.Sign up for RFP release at
http://www.nyserda.ny.gov/nyprize
2.Assemble working group / core team
3.Identify local cluster of assets including critical
infrastructure
4.Organize and educate core stakeholders
5.Identify FlexTech resources or other project
consultants for feasibility study and/or design
by emailing flextech@nyserda.ny.gov
Next Steps
15
micah.kotch@nyserda.ny.gov
@CLEANTECHNYC
#NYPRIZE / #ENERGYTOURNY
www.nyserda.ny.gov/nyprize
Contact
16
Mid-Hudson
Dick Riseling
Owner, Apple Pond Farm,
Renewable Energy Education
Center
17
New York Prize - Presentation by NYSERDA/Micah Kotch

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New York Prize - Presentation by NYSERDA/Micah Kotch

  • 1. Micah Kotch, Director NY Prize Strategic Advisor for Innovation NYSERDA
  • 2. New York is the birthplace of the modern electric grid 2 New York
  • 3. 3
  • 4. “We were all part of a majestic endeavor and we were making history happen.” 4
  • 5. • Sense of urgency • Extreme weather events • Aging infrastructure • Increased energy demand What’s Different Now? 5
  • 6. • Power outages cost New Yorkers $9 billion per year • New Yorkers pay among the highest average rates for electricity in the U.S. Extreme Weather – The New Normal 6
  • 9. What is a Microgrid? 9 A group of interconnected loads and distributed energy resources that form a single controllable entity capable of operating continuously in both grid-connected and islanded mode. Not New . . . Not Backup Generation
  • 10. NYSERDA Microgrid Study Benefits • Economic • Reliability & Power Quality • Environmental • Security & Safety http://on.ny.gov/1ukZOa8 10
  • 11. NY Prize: A New Generation of Local Power 11 • Pipeline of ~25 feasibility studies • 10 designs selected • At least 5 projects constructed • Replicable strategies (“playbook”) for communities in NY and beyond
  • 12. Award Process 12 ~25 awards for studies ($50 - $100K) 8-10 Awards ($500K – $1M) $1-3m $5-10m Allocations $25-35m5-7 Awards ($5-$7M) Critical project partners: Municipalities and Utilities All communities enter/apply to competition and are evaluated at each stage by external judges Stage 1 Awards to Conduct Feasibility Assessments Stage 2 Feasibility Evaluated Awards for Audit Grade Design Stage 3 Designs Evaluated Awards for Build-out/ Operation Threshold Audit Grade Design Criteria Threshold Quantitative Criteria Audit Grade Design Review
  • 13. Community Roadmap 13 Step 2: Identify Project Site Step 3: Conduct Feasibility Assessment Step 4: Conduct Detailed Design Step 5: Acquire Financing, Approvals, and Construct Step 1: Set Project Goals, Organize, and Educate Stakeholders
  • 14. • The overall cost and benefits of the project • The project’s contribution to public need (increasing safety and quality of life for residents in an outage situation) • The technical and operational performance of the project • The demonstrated reliability of the proposed microgrid configuration • The use of clean and renewable generation resources in the project • Overall financial and managerial capabilities of the developer Evaluation Criteria 14
  • 15. 1.Sign up for RFP release at http://www.nyserda.ny.gov/nyprize 2.Assemble working group / core team 3.Identify local cluster of assets including critical infrastructure 4.Organize and educate core stakeholders 5.Identify FlexTech resources or other project consultants for feasibility study and/or design by emailing flextech@nyserda.ny.gov Next Steps 15
  • 17. Mid-Hudson Dick Riseling Owner, Apple Pond Farm, Renewable Energy Education Center 17

Editor's Notes

  1. Sometimes whats old is new again. Imagine if you can, seeing electric lights for the first time. power was decentralized, dirty, and quite expensive. A mile from here, the Pearl Street Station was the first central power plant in the United States, started generating electricity on September 4, 1882, serving an initial load of 400 lamps at 85 customers. This was the extent to which consumers controlled how they manage and consumed energy. As the birthplace of the modern electrical grid, NY is now at the center of another revolution to rethink how we generate and consume energy, and the business models that enable that exchange along the way. It’s worth looking back at how Edison viewed electricitys primary value: as the enabling vehicle for innovative consumer products and services, not as another form of commodity energy. For the inventor of the phonograph, the movie camera, etc. electricity was a platform that enabled innovative entrepreneurship and delivered comprehensive creative solutions for consumers. Every commodity is a service waiting to happen, and Edison would agree that electricity has waited far too long. \Pearl St. was the original cogen microgrid. Old mill towns, and the 300 small hydro plants across NYS were microgrids. We’ve evolved to a significant level of complexity in the modern distribution system infrastructure, and because distributed generation is now close to achieving economies of scale, supply is more manageable, and consumers are demanding higher power quality we’re ready to tackle some big issues with NY Prize: 132 years after Edison flipped the switch at Pearl St., now is the perfect time to engage in this work, as the price tag simply to keep New York’s antiquated grid running over the next decade is an estimated $30 billion.
  2. After Superstorm Sandy, Governor Cuomo said it was time to act, not react, to climate change. New clean energy policies and programs are part of a comprehensive strategy to building a cleaner, more resilient, reliable and affordable energy infrastructure.   To lead this effort, a new energy leadership has been put in place. Richard Kauffman, Chairman, Energy & Finance, State of New York Gil Quinones, President & CEO, New York Power Authority (NYPA) John B. Rhodes, President & CEO, New York State Energy Research and Development Authority (NYSERDA) Audrey Zibelman, CEO, Department of Public Service As part of its mission
  3. Tom Kelly led the engineering team to design and develop a machine in 7 years to land on the Moon in conditions unlike anything experienced on Earth. Under his leadership the 3000 engineers and 4000 technicians at Grumman conceived, designed the critical manufacturing techniques, constructed, integrated materials, parts, systems and tested the LM. Kelly recognized that “we were all part of a majestic endeavor and that we were making history happen”. His pride in saving the lives of the Apollo 13 crew using the LM as a lifeboat is also well deserved. http://www.rocketstem.org/2014/07/15/unsung-heroes-of-the-apollo-program/
  4. Here’s what’s different now, sense of urgency and increasing extreme weather events Aging energy infrastructure under increasing pressure to handle increased demand 2 yrs ago, we saw what happens when the perfect storm hits, and the grid goes down. Sandy provided a wake up call, and it led to the current restructuring of our regulatory environment and new clean energy programs in NYS
  5. We know all too well what happens when the grid goes down and power stops flowing. As we approach the second anniversary of Superstorm Sandy, which claimed 286 lives and was the second costliest hurricane ($65B) in US history, its worth noting that power outages in the United States are up an astonishing 285% since 1984. The U.S. ranks last among the top nine Western industrialized nations in the average length of outages. That dismal performance costs American businesses as much as $150 billion every year according to the EIA. It costs NYers about $9B, but along with that, New Yorkers pay among the highest average residential electric rates in the continental United States, nearly twice the national average according to the latest data from the U.S. EIA.
  6. 66 communities
  7. Unique alignment of people and policies that is putting clean energy front and center, promoting more distributed power at customer locations, less large infrastructure investments That new future starts with the premise that, As NYS Energy Czar Richard Kauffman puts it: “We want to be on the frontier of new markets, providing the necessary support to get the private sector fully engaged. We’re not installing enough renewables, and we’re not getting the economic-development boost that a transition to a new-energy economy can provide. We need to rethink what we do.” NY Prize can serve as a mechanism to identify community energy systems that make the most sense, and help pay down the cost of capital to save community power cooperatives the time value of money over 20 or 30 years.
  8. country's largest housing development. Co-op City, a Bronx-based development with more than 50,000 residents, used its onsite 40 MW CHP plant to power the entire development even as the grid failed around it.
  9. Economic Direct Energy cost reductions Reduced purchases of electric generation, transmission, and distribution services Reduced purchases of fuel for on-site thermal energy demand Reduced purchases of ancillary services Sales of excess electricity to macro-grid Participation in demand response programs Provision of ancillary services to macro-grid Indirect Reduced electric T&D losses Deferred electric T&D capacity investments Utility option value for long-term planning purposes Enhanced electricity price elasticity Support for deployment of renewable generation Reliability & Power Quality Reduced power interruptions Enhanced power quality Environmental Reduced emissions of greenhouse gases Reduced emissions of criteria pollutants Security & Safety Safe havens during power outages
  10. The end state of REV driven transition of the State’s energy infrastructure towards a clean energy economy: Utilities will have moved EE, DG, and DERS from the periphery to the core of their business operations Market actors both private sector and utilities unregulated businesses compete to provide energy products and services, giving consumers more choice and value NY Green Bank helps unleash a large influx of private sector capital in deployment of clean energy tech Targeted interventions by NYSERDA and NYPA drive rapid expansion of DER instalations, resulting in sustainable private sector driven clean energy markets *streamlined implementation strategy#
  11. Stage Zero - Project Concept/Definition Identify stakeholder needs Prepare statement of needs Preliminary business case Prepare outline project brief Appoint project team Gateway 1: Approval or denial to proceed with feasibility Stage One - Feasibility Site constraints and opportunities Select and appoint consultants Develop project brief Preliminary project master program Options, appraisal and selection Funding investment and appraisal Project organization and control Procurement strategy Cost planning and management Prepare full business case Gateway 2 – Approval or denial to proceed with detailed design Stage Two - Detailed Design Prepare detailed consultant RFPs Select bidders list Bid projects Evaluate bids Approval to proceed Appoint consultants Detailed design Design team briefing Detailed proposals Final proposals Product information Variations to traditional forms of contract GATEWAY 3 – Approval or denial to proceed to build
  12. HOLDING SLIDE FOR QUESTIONS