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The Economic Case for Resilient Solar+Storage in the Southeast May 16, 2019

The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

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Page 1: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

The Economic Case for Resilient Solar+Storage in the Southeast

May 16, 2019

Page 2: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

Join audio:

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Submit questions and comments via the

Questions panel

This webinar is being recorded. We will

email you a webinar recording within 48

hours. CEG’s webinars are archived at

www.cleanegroup.org/webinars

HOUSEKEEPING

Page 3: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems
Page 4: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

THE RESILIENT POWER PROJECT

• Increase public/private investment in clean, resilient power systems (solar+storage)

• Protect low-income and vulnerable communities, with a focus on affordable housing and critical public facilities

• Engage city, state and federal policy makers to develop supportive policies and programs

• Visit www.resilient-power.org for more information and resources

Page 5: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

SUPPORTING 100+ PROJECTS ACROSS THE COUNTRY

Portland: Assessment of 10 LMI properties including affordable housing, foodbanks, medical centers, and shelters

DC: Largest solar+storage installation at affordable housing in the country

California: Multiple housing properties representing hundreds of units of affordable housing

Puerto Rico: Supporting the installation of solar+storage at more than 60 medical clinics

Boston Medical Center: One of the first hospitals in the country to install storage for resiliency

Page 6: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

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The Economic Case for Resilient Solar+Storage in the SoutheastWebinar Speakers

Marriele Robinson, Program Associate, Clean Energy Group

Logan Atkinson Burke, Executive Director, Alliance for Affordable Energy

Matt Cox, CEO, The GreenlinkGroup

Seth Mullendore, Vice President & Project Director, Clean Energy Group

Page 7: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

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Five Cities: Atlanta, Charleston, Miami, New Orleans, Wilmington

Four Building Types: Schools, nursing homes, multifamily housing, fire Stations

Two Technologies: Solar PV, battery storage

One Result: Solar+storage makes economic sense for energy resilience in the Southeast

Page 8: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

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Page 9: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

RESILIENT SOUTHEAST REPORT SERIES

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• Detailed analytical analysis to determine the economic viable of solar and battery storage

• Policy, regulatory, and market landscape review

• Set of recommendations for advancing resilient power in the Southeast

Page 10: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

RESILIENT SOUTHEAST WHY?

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• Hurricane Florence (2018): 1+ million outages across Carolinas

• Hurricane Michael (2018): 300,000+ outages in Georgia

• Hurricane Irma (2017): 6 million outages in Florida

• Hurricane Katrina (2005): 900,000 outages in Louisiana, 42% of state

Page 11: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

ANALYIS METHODOLOGY

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• Economic Scenario: Most cost-effective system configuration based on electric bill savings opportunities and available incentives - maximize NPV

• Resilient Scenario: System capable of providing onsite backup power to keep critical services powered and operational for at least several hours during a grid outage

• Avoided Outage Costs: The value of losses that would be incurred if a facility were to experience a power outage without a backup source of energy

Page 12: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

ANALYSIS RESULTS

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Page 13: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

SOLAR AND STORAGE LANDSCAPE

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Secondary School Results

Page 15: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

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Secondary School Results

Page 16: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

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Secondary School Results

Page 17: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

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Secondary School Results

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Secondary School Results

Page 19: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

SOLAR & STORAGE RECOMMENDATIONS

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• Allocate grant funding for solar+storage demonstration projects

• Establish public technical assistance funding• Provide targeted incentives for battery storage• Establish energy storage procurement targets and goals• Create market opportunities for energy storage to provide

grid services• Include energy storage in state energy efficiency programs

($460 million)• Include resilient power in disaster relief funding

Page 20: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

QUESTIONS?

Seth Mullendore, Vice President/Project Director

[email protected]

Clean Energy Group, Inc.

Phone: 802.223.2554

www.cleanegroup.org

www.resilient-power.org

Page 21: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

Regulatory Landscape

• Appetite for Resilience

• 100 Resilient Cities – Resilience and Climate Action Strategies

• New Orleans / Louisiana • Regulation bifurcated thanks to Home Rule Charter

• New Orleans City Council regulates Entergy New Orleans

• Entergy N.O. : Vertically Integrated Investor Owned Utility

Page 22: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

City Council Meeting

February 2019

New Orleans

Photo: VAYLA- NOLA

Page 23: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems
Page 24: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems
Page 25: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

Solar in New Orleans- 40MW+

Image:PosigenFebruary 2018

Page 26: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

Entergy Adding Solar

• 90 MW utility scale ( outcome of 2016 RFP)• Application underway (not yet approved/settled)

• Three projects: 2 PPA outside New Orleans +1 Utility Self Build in Orleans Parish

• 5MW distributed commercial-scale rooftop • Approved 2018 - $2.32 /watt, deployment underway

• 1 MW solar + 500 kw storage installation, complete in 2016. • ~$6.5M

• No data available – not a Council approved project

Page 27: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

Current Planning Problems

• Integrated Resource Planning is all about incremental capacity additions.

• Utility states they do not have a way to include distribution planning in IRP.

• Scorecard to rank potential portfolios doesn’t include a resilience metric.

• Storage cannot not included as Demand Side Management.

• No resource acquisition requirement in place. • competitive solicitation, all source, request for proposal, market mechanism

• Reliability is sub-par ~2,600 outages annually

Page 28: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

Policies

• Community Solar – Enabled March 2019

• Integrated Resource Plan – Underway through Fall 2019

• Renewable Portfolio Standard – Underway through Fall 2019

• Request for Proposal rulemaking – Underway

• Prudence review :sub-par reliability – Underway through Summer 2019

• Rate Case – Underway, rates in force September 2019

Page 29: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

RESILIENT SOUTHEAST: THE EVOLVING POLICY LANDSCAPE

Presented by Matt Cox, PhD, CEO The Greenlink Group

Page 30: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

UTILITY PLANNING MOTIONS• IRP

• Duke, TVA, Georgia Power, Dominion

• Cost/Reliability

• RFP

• Treatment debates

Page 31: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

LOCAL

• Resilience hubs

• Community protection

• Heating/Cooling

• Emergency services

• Communication hotspots

• Atlanta-specific Details

• ~25 municipal PV installs underway

• Over $30,000 in utility bill savings since 2018

• Fire station S+S installs

Page 32: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

THANKS!

Questions?

Reach out: Matt Cox

[email protected]

Page 33: The Economic Case for Resilient Solar+Storage in the Southeast · 5/16/2019  · THE RESILIENT POWER PROJECT • Increase public/private investment in clean, resilient power systems

Thank you for attending our webinar

Find us online: www.resilient-power.org

www.cleanegroup.orgwww.facebook.com/clean.energy.group

@cleanenergygrp on Twitter @Resilient_Power on Twitter

Seth MullendoreVice President and Project Director

Clean Energy Group [email protected]