New York State and NYSERDA are launching a $40 million dollar Microgrid competition.
International companies are also encouraged to participate. NY Prize Director, Micah Kotch, gave a presentation on NY Prize, its proces and how and when companies can participate.
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
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.
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
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/
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
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.
66 communities
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.
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.
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
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#
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