Demand Response Program
The Demand Response Program Renewal involves OCWD's participation in programs to protect the electric grid during emergencies, focusing on load reduction and renewable energy integration. Learn about the program details, benefits, rules, and terms for GWRS involvement.
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Presentation Transcript
Demand Response Program Renewal Admin Finance Committee August 12, 2021 1
Demand Response Renewal Terms 1. Program is designed to protect the electric grid during times of emergency. OCWD s GWRS is the ideal candidate for inclusion in a demand response program because: Large electrical load Water production can be temporarily reduced 3. Generation demands are changing due to renewables like solar and wind. Renewables have a supply goal of 33% by 2029 and 50% by 2030 2.
Demand Response Overview OCWD has participated in Demand Response Programs (DRP) since Water Factory 21 and now with GWRS. OCWD has participated in a Base Interruptible Program (BIP) DRP since 2017 and payment received is performance-based Current DR contract is with Enel X and expires December 31, 2021 Contract requires a load reduction to a firm service level (FSL) of 5,000 KW. GWRS averages 17,000 KW when operating at normal capacity Operation of GWRS at 15 mgd allows us to reach FSL. (GAP, Lab and Administrative building power remain online during DR events.)
Demand Response Base Interruptible Program Rules SCE Time-of-Use Base Interruptible Program (TOU-BIP) Territory Central, Coastal and Southern California Demand Response Types Curtailment Payments Capacity Payments (for being on stand-by) Costs No upfront, out-of-pocket costs to participate Program Period & Hours Year-round; 24/7 Dispatch Notification 30 minutes Response Duration 1-6 hours Maximum Dispatches 1 dispatch per day; 10 dispatches per month; 180 hours per year Annual Dispatch Frequency 2-3 events on average Event Penalties None with Enel X Generator Eligibility Backup generators are ineligible as a demand response curtailment method Technology Requirement If not already available, SCE may install a smart meter at your site. 4
Demand Response Renewal Terms Term: 5 years Capacity Payment Rate: Previous 80% split, new agreement 85% Est. Payments: (12,000 kW)*(85% split) = $1,282,300 annually kW value will be determined by your actual monthly availability above FSL FSL = 5,000 kW No out of pocket penalties Underperformance adjustment for usage above FSL during event = $8.50/kwh Checks sent quarterly Program Availability: 24/7 January through December Notification Window: 30 minutes Event Frequency: 1-3 events annually, on average (2020 outlier) Max Event Duration: 6 hours 5
Recommendation Agendize for the August 18 Board meeting: Authorize the General Manager to finalize and execute a five-year agreement renewal for Demand Response extending between August 1, 2021 and December 31, 2026 with Enel X for a firm service level of 5,048 kilowatts for the GWRS. 6
Dispatch History Date and dispatch duration (hours) 2020 Dispatches 6 Dispatch Duration (hours) 5 5 5 4 4 4 3 3 3 3 3 2 2.5 2 2 1 1.5 1 1 0 9/19/2013 9/24/2015 5/3/2017 9/4/2019 8/15/2020 8/17/2020 9/5/2020
How you get paid What you get paid Capacity Payments - You are paid for the difference between your usage and Firm Service Level (FSL) - Your payment is based on the difference between your usage and your FSL - If there is an event, you are paid as long as you drop your usage to, or below, your FSL target - You maximize your earnings when you curtail usage to your FSL during dispatches - If you do not curtail to your FSL during an event, your quarterly payment will be reduced commensurately. - Payments accrue monthly and are paid quarterly There are no penalty payments, and you earn more the better you perform 9
