Dec 08 Solar Futures AZ

Report 3 Downloads 42 Views
Solar Electric Power Association

Solar Future Arizona: A Stakeholders’ Collaboration December 11, 2008

Presented by: Joni Batson, R. W. Beck, Inc. Phil Smithers, Arizona Public Service

Copyright © 2008 by R. W. Beck, Inc. All Rights Reserved.

Overarching View of the Project

2

R. W. Beck, Inc.

Overview TECHNOLOGIES 

Residential  





Photovoltaics (PV)

Commercial 

Photovoltaics (PV)



Daylighting Grocery, Office, Retail, School Gym, & Warehouse

Business As Usual (BAU)  Market-based Adoption 

Solar Water Heating (SWH)



3

DEPLOYMENT FRAMEWORKS

 



Targeted or Strategic  Enhance Value  



Conservative Optimistic Modified

Energy Capacity

Semi-Strategic  Qualitative Evaluation of Near-Term Options R. W. Beck, Inc.

Methodology 



4

Model solar characteristics and deployment scenarios Evaluate impacts and potential value for: 

Distribution System



Transmission System



Generation/Resource Planning



Estimate financial and qualitative benefits



Solicit stakeholder feedback - 5 workshops R. W. Beck, Inc.

Summary of Preliminary Findings Impact on Peak Load Example Summer Peak Day Solar DE Max Generation at 10% of Peak 1,200

8,000

Demand Demand After Solar

243 MW Peak Reduction

Solar Resources

1,000

6,000 800 5,000

713 MW Solar Capacity

600

4,000

3,000 400 2,000

Hourly Solar DE Production (MW)

Hourly Electric System Demand (MW)

7,000

200 1,000

0

0 1

2

3

4

5

6

7

8

9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour Ending 5

R. W. Beck, Inc.

Summary of Preliminary Findings Impact on Residential Loads RESIDENTIAL TECHNOLOGIES 

PV  







Max. monthly production – April

SWH 

Summer max. hourly output ~ 1:00 PM W-facing system oriented 18.4° summer max. hourly output ~ 2:00 PM, closer to utility peak demand period



Higher impact on residential electric consumption in winter than in summer Customer demand decreases 2%-5%

Customer demand decreases 0%-10%

Typical production not coincident with peak demand of either residence or utility Customer equipment size not impacted 6

R. W. Beck, Inc.

Summary of Preliminary Findings Impact on Commercial Loads COMMERCIAL TECHNOLOGIES 

PV 







During the summer a flat and 10° tilt system will have similar max. production rates During the spring, 10° tilt system will have a 10% higher max. production rate during peak production hour (1:00 PM) Customer demand decreases 0%-26% depending on business hours

Daylighting 







Savings differ substantially across building types Only partially coincident with APS peak demands Customer demand decreases 1%-3% Savings decline significantly as days shorten

Typical production not coincident with peak demand of either residence or utility Customer equipment size not impacted 7

R. W. Beck, Inc.

Summary of Preliminary Findings Potential Deployment Scenarios Solar DE (Commerical and Residential Combined) 4,000,000 3,500,000 3,000,000

MWh

2,500,000 2,000,000 1,500,000 1,000,000 500,000

Optimistic

8

Conservative

RES Goal

2024

2022

2020

2018

2016

2014

2012

2010

2008

0

Modified

R. W. Beck, Inc.

Summary of Preliminary Findings Impact on Energy 400000

Annual Loss Savings (MWh)

350000 300000

Optimistic Conservative R.W. BECK

250000 200000 150000 100000 50000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

9

Year

R. W. Beck, Inc.

Summary of Preliminary Findings Impact on Demand REDUCTION/DEFERRAL OF CAPACITY UPGRADES 







10

Customer demand decreases 0%-26% depending on individual residential/commercial types and usages Feeder/substation/transmission equipment size not impacted Potential postponement of T & D upgrades 

Requires strategic location of large amount of DE



Requires energy storage of sufficient duration

Reduced future generation expansion

R. W. Beck, Inc.

Summary of Preliminary Findings Impact on Generation Expansion Plan Example Capacity Need After Solar DE 16,000

Avoided Cap Need Future Cap Need

14,000

Renewable

Summer Peak Demand (MW)

Purchased Power CT Gas

12,000

Steam Gas CC Gas

10,000

Coal Nuclear Demand Requirements

8,000

Demand after RES

6,000

4,000

2,000

11

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

0

R. W. Beck, Inc.

Summary of Preliminary Findings Potential Utility Issues RELIABILITY AND NON-COINCIDENCE WITH PEAK LOADS 

 

12

Increasing solar installations pushes the electric system peak to a latter hour where less capacity is available from the solar resources – limited reduction in peak capacity requirements Localized peak reduction undependable due to clouds Solar resources are non-dispatchable As they become a large portion of the power supply portfolio they reduce the available dispatchable resources to meet system contingencies – more reserves may be required R. W. Beck, Inc.

Summary of Preliminary Findings Potential Utility Issues (cont.) RELIABILITY AND NON-COINCIDENCE WITH PEAK LOADS 



13

Increased cost of dispatch caused by need for additional operating reserves Increased fuel costs caused by less efficient generating portfolio – reduction of off peak low-cost base load

R. W. Beck, Inc.

Methodology/Assumptions Deployment Model

14

R. W. Beck, Inc.

Methodology/Assumptions

Customer Analysis – PV and SHW Commercial PV

Residential PV

Residential SHW

Dates

2006 & 2007

2006 & 2007

2006 & 2007

Base Case System Size

½ Peak Demand for 2006

2 kWdc

Standard electric 0.88 EF, 50-gal tank

Base Case x 1.5, 2, 2.5, 3, 3.5, 4

Sizes Analyzed Fixed Array Roof mounted Assumptions Flat roof

Roof mounted Pitched roof 18.4° elevation South facing

Baseline Usage 3,940 kWh/year (Solar) (3,485 kWh/year)

One-Axis tracking High Peak/Value (1x) N/S axis Assumptions

Roof mounted Pitched roof 18.4° elevation Southwest facing

Household Size Single-family 3-person 3 bedrooms 2 stories, 2600 sq ft

10° tilt South facing

15

R. W. Beck, Inc.

Methodology/Assumptions

Customer Analysis - Daylighting

16

Grocery (Large)

Office (Small)

Retail (Large)

School Gym

Warehouse

Size (sq ft)

30,000

6,000

50,000

6,000

100,000

Total Annual Energy Use (kWh/sq ft)

51.19

15.19

19.67

14.29

11.22

Total Peak Demand (W/sq ft)

7.95

4.64

4.71

2.71

-

Lighting Annual Energy Use (kWh/sq ft)

10.9

5.47

7.24

4.20

2.87

Lighting Peak Demand (W/sq ft)

1.59

1.50

1.61

1.20

0.90

Lighting Annual Operating Hours

6,867

3,647

4,496

3,247

-

Technology

Meets the minimum requirements for APS’s Renewable Energy Rebate Program

Light Output

Must provide ≤70% of the light output of the artificial lighting system that would otherwise be in use R. W. Beck, Inc.

Methodology/Assumptions

10th Percentile Solar Output (MW)

Solar Dependable Capacity

800 700

10th percentile Solar Output (MW) @ 5pm

600 500 400 300 200 100 0 0th

10th

20th

30th

40th

50th

60th

70th

80th

90th

100th

Percentile 2025 Conservative 2025 R.W. Beck Modified 2025 Optimistic 17

R. W. Beck, Inc.

Methodology/Assumptions Investment Deferral 





 

18

Determine an average investment cash flow as a function of peak load growth Distributed dependable capacity can essentially “slow” load growth if strategically located in a constrained area Estimate potential reduction in peak load growth due to solar DE dependable capacity Adjust for reduced losses at peak load Calculate possible deferred investment due to reduced growth R. W. Beck, Inc.

Methodology/Assumptions Investment Deferral 







19

Existing transmission plan covers APS’ needs through 2012 Existing distribution plan covers APS’ needs through 2010 For every 500 MW of load growth, APS needs new $110 M transmission upgrades to obtain scheduling rights for new traditional generation to growing load For every MW of load growth, APS needs new $115,000 distribution upgrades to reliably serve growing load R. W. Beck, Inc.

Methodology/Assumptions System Loss Savings 

Methodology assumes: 

 





 20

System resistance (R) constant through year, but, changes year to year (with buildout) System losses of about 8% per year stays constant Of this 8%, 6% is “series” losses affected by solar DE and 2% is no-load and other losses not affected

From an 8760 strip of load, 6% series losses for the year, calculate a system R (Losses = R * I2) Determine hourly load impact of 8760 strip of solar DE output for each deployment scenario Calculate hourly revised losses = R *(Iload – IsolarDE)2 R. W. Beck, Inc.

Methodology/Assumptions Business Case For Each Scenario Distribution Savings

Capacity Savings

+

Energy Savings

=

Estimated Distribution Savings

Capacity Savings

+

Energy Savings

=

Estimated Transmission Savings

Capacity Savings

+

Energy Savings

=

Estimated Generation Savings

Overall Capacity Savings

+

Overall Energy Savings

=

Estimated Total Savings

+ Transmission Savings

+ Generation Savings

= Total Savings

21

R. W. Beck, Inc.

Methodology/Assumptions APS Carrying Charges 



Use of carrying charges allows for calculation of annual cost savings to utility from reduced investment costs Carrying charges vary by business sector 



Typically range from 9-15%

Sample calculation for 12% carrying charge: $10 million investment savings = $1.2 million per year reduction in the utility’s costs

22

R. W. Beck, Inc.

Preliminary Results Residential  

23

SWH - Modeled 33 Customers in 7 Zip Codes over 2 Years PV - Modeled 44 Customers in 9 Zip Codes over 2 Years

SWH

PV

Annual energy reduction

10% - Max. SWH Usage

11% - 100%+ (assumes net metering)

Annual demand reduction

2% - 5%

0% - 10%

R. W. Beck, Inc.

Preliminary Results Commercial PV 

PV - Modeled 23 Customers, 7 Types over 2 Years



Daylighting - Modeled 23 Customers, 3 Types over 2 Years Demand Reduction

Customer Type

PV

Distribution Centers

0% - 2.5%

Grocery

0% - 11%

Healthcare Office Bldg.

7% - 18%

Large Commercial

0% - 20%

Large Retail 2% - 26%

Realty

0% - 5%

School 24

0% - 11%

0% - 14%

Medium Retail

Storage

Daylighting

0% - 7% 0% R. W. Beck, Inc.

Preliminary Results

Feeder/Substation Screening Analysis Type of Customers

Western

11

Residential

N Phoenix - 101 & 75th Ave

Irrigation

Arrowhead 4

Region

Industrial

Location

Commercial

25

Substation

1082

Length Short

# of Customers/ Xfmr Dense

Annual Peak Demand Savings 0% - 7%

Cactus 17

Pima & Shea

Eastern

127

1

270

Cactus 18

Pima & Shea

Eastern

74

1

13

0%

Deadman Wash 2

I-17 & Deadman Wash

Central

34

1639

1% - 12%

Deadman Wash 6

I-17 & Deadman Wash

Central

East Valley-Acoma 4

N Phoenix - Scottsdale Air

Eastern

679

64

90

Short

Dense

0% - 13%

East Valley-Acoma 13

N Phoenix - Scottsdale Air

Eastern

169

5

1

Short

Dense

0% - 11%

East Valley-Cave Creek 10

N Phoenix - Cave Crk & School House Rd

Eastern

218

4

1289

Long

Sparse

0% - 6%

East Valley-Cave Creek 14

N Phoenix - Cave Crk & School House Rd

Eastern

185

7

500

Long

Sparse

0% - 15%

East Valley-Chaparral 4

N Phoenix - Shea & Scottsdale

Eastern

117

1537

Short

Dense

1% - 8%

East Valley-Chaparral 6

N Phoenix - Shea & Scottsdale

Eastern

203

2

543

Short

Dense

0% - 14%

East Valley-Chaparral 12

N Phoenix - Shea & Scottsdale

Eastern

350

4

135

Short

Dense

0% - 2%

East Valley-Thompson Peak 12 N Phoenix

Eastern

35

1356

Short

Dense

1% - 5%

Galvin Peak 41

Eastern

146

1099

Short

Dense

1% - 6%

N Phoenix - 16th & Jomax

1% - 5%

1% - 6%

7

1

1

2

Galvin Peak 42

N Phoenix - 16th & Jomax

Eastern

101

1

1063

Short

Dense

1% - 6%

Indian Bend 2

N Phoenix - Cactus & Tatum

Eastern

96

1

704

Short

Dense

0% - 5%

Indian Bend 6

N Phoenix - Cactus & Tatum

Eastern

4

Javalina 4

Bell & Sev

Western

20

Mountain View 1

N Phoenix - 99th Ave & Bell

Western

23

Pioneer 2

I-17 & Carefree

Central

226

Storage

1 3

Short

Dense

3%

1510

Short

Dense

0% - 9%

848

Short

Dense

1% - 12%

1247

0% - 9% 0%-25%

R. W. Beck, Inc.

Solar Dependable Capacity

(Includes effect of peak load shifting to 6pm) 600

Solar Output @ 10th Percentile With Adjustment for Peak Shift

Conservative Optimistic R.W. Beck Modified

500

400

300

200

100

0 2015

2017

2019

2021

2023

2025

Year 26

R. W. Beck, Inc.

Preliminary Results

Deferred Transmission Upgrades Number of Assumed 500 MW, $115 M Upgrades Deferred Through 2025 2

1

0

O

e iv

k ec .B W

at rv

tic is im pt

R.

e ns Co

27

R. W. Beck, Inc.

Summary of Preliminary Findings Impact on Energy SYSTEM LOSS REDUCTION Solar DE Deployed

Annual Energy Loss Savings

GWH-Generated

GWH-Savings

Business-as-Usual Conservative Case 2010

15

2

2015

95

11 12

2025

157

19 20



Energy reduction proportional DE size, penetration

Business-as-Usual R. W. Beck Modified Case 2010

16

2

2015

161

19 21

2025

1,600

189 202

2010

16

2

2015

161

19 21

2025

3,472

390 489

Business-as-Usual Optimistic Case

28

R. W. Beck, Inc.

Qualitative Lessons Learned OBSTACLES 





Misunderstanding, mythology, and opinion Limit to DE solar energy’s capacity value is regardless of quantity of PV installed/customer due to non-coincidence with customer or system peak Distribution capacity value only if  

29

Strategically located (Potential in specific areas may not be adequate) Capacity value greater than one year’s growth



Optimal orientation for demand reduction has lowest energy output



No decrease in infrastructure w/o dependable storage & peak data/control

R. W. Beck, Inc.

Qualitative Lessons Learned POTENTIAL SOLUTIONS 

 

30

Steps to shift solar output to later in day increase capacity value 

Energy storage - at the expense of capital costs and loss of efficiency



Daylight savings - shift solar output one hour later



Single axis tracking - shift solar output later

Additional data/control - Expanded AMI Development in a Greenfield opportunity driven by market “pull,” not home-builder “push”



Additional research of strategic locations & teaming with builders



Public education

R. W. Beck, Inc.

Qualitative Lessons Learned ASSUMPTIONS AND LIMITATIONS 





Scope evaluates average value of solar DE under differing cases and scenarios; targeted at benefits to overall average costs to consumers - methodology selected does not address the value of solar to APS' shareholders, different consumer groups and those with and without solar All results depend on the persistence of solar DE implementation; scope does not address obsolescence, renewals, and replacements. The following potential benefits are not quantified: 

Possible environmental benefits



Possible societal benefits





31

Impacts from changes in various institutional factors (e.g. state mandates, various incentives, etc.) Possible future improvements in energy storage technology R. W. Beck, Inc.

Summary of Key Findings Value to APS – To Come

Example:

Demand/Capacity Savings

Energy Savings

Total Savings

Associated

Associated

Associated

MW-Savings

$ Savings

$/kW

MWh-Savings

$ Savings

$/kWh

MWh-Savings

$ Savings

$/kWh

11.300

500,000

44.25

11,300,000

600,000

0.05310

11,300,000

1,100,000

0.09735

Business-as-Usual Case 2010 2015 2025 Strategic Case 2010 2015 2025

32

R. W. Beck, Inc.

Questions?

December 11, 2008

Questions, please contact: Joni Batson, 615.431.3214, [email protected] Phil Smithers, 602.250.4250, [email protected]

Copyright © 2008 by R. W. Beck, Inc. All Rights Reserved.

R. W. Beck, Inc.

Recommend Documents