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DMME Overview

Contracts Meeting Walid M. Daniel , PE, CEM Department of Mines, Minerals, and Energy Manager – Virginia Energy Management Program 804-382-4217 walid.daniel@dmme.virginia.gov. DMME Overview.

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DMME Overview

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  1. Contracts MeetingWalid M. Daniel , PE, CEM Department of Mines, Minerals, and EnergyManager – Virginia Energy Management Program804-382-4217walid.daniel@dmme.virginia.gov

  2. DMME Overview • Renewable rebate program W’ve approved over 850 PV and thermal projects with a combined capacity of just under 7 megawatts. Rebates paid total just over $9.45 million and leveraged just over $31 million in total project costs. Note there are still 12 additional commercial rebate projects totaling around $850K (rebate portion only) pending completion before April 30.

  3. DMME Overview • We also have  renewable projects (predominantly solar) at 13 local gov/K-12/ and community college facilities totaling around $2.5 million, and state facility projects (DGS, DOC, VT, DGIF & VCU) totaling around $12 million. 

  4. DMME Overview • The 40 EECBG ARRA funded projects were awarded to local governments, school divisions and other public entities for energy retrofit projects in a number of public buildings/facilities. Some local governments projects expanded into Performance contracting undertakings by the localities.

  5. DMME Overview • The Residential Retrofit Project is a DOE funded project undertaking deep energy efficiency retrofit projects in 4 different geographic areas of the state. The work is being done by Regional Energy Alliances, which are incorporated,  non-profits organizations working in Richmond, Christiansburg, Charlottesville and Arlington County. This project involves training and/or education of homeowners, building auditors, retrofit contractors, real estate agents and appraisers.

  6. DMME Overview • A Commercial Retrofit Project that will help determine barriers to undertaking energy efficiency retrofit projects in commercial buildings and then propose solutions to overcome these identified barriers. This is a DOE funded project that will undertake this work in Northern Virginia and Maryland.    

  7. Overview of Demand response • 1. Demand Response pays large facilities to reduce KWH. • 2. No risk, no fees, virtually no obligation, no cap-ex. • 3. Why – to reduce grid ops cost, avoid new construction. • 4. Who – Energy Connect, PJM, and You. • 5. Energy Connect client base – VCU, UVA, Sears Tower, Regan National Airport, US Steel, etc. • 6. How – Engineering support, Leading online software suite. • 7. How Much – Largest city facilities could earn $1M+ annually • 8. How Soon – 23 days from contract to revenue generation

  8. The Benefits of Demand Response Power Grid Benefits Electric Customer Benefits Positive Impact on Community Positive Impact on Community Risk & Resource Management Risk & Resource Management nvironmentally Responsible Environmentally Responsible Financial Incentive Financial Incentive Demand Response is one of the few “technologies” available that can address energy and environmental issues positively while creating economic development opportunities!

  9. What is Demand Response? • Historically–service interruption events deployed by the utility for a reduced retail rate and penalties for failure to comply. • Today – Power Grid operators directly rewarding individual retail consumers to shift, reduce, or displace energy usage.

  10. How It Works 3500 $ = (RTLMP – Supply Price) x (CBL – Actual) 3000 2500 2000 Load (kW) 1500 1000 Baseline Actual Load Estimated Load 500 0 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 Hour • Deploy load reduction strategies when market prices provide incentives to facility. • y

  11. Types of DR Programs Programs and pricing can vary by geography .Not all program types are available in all geographical areas.

  12. PJM Presentation of DR Benefits 2008 payments through 9/30 are $21.4M EnergyConnect clients represent well over 50% of this total. We achieve this through cutting edge technology and engineering services. • .

  13. In 2008, PJM has fine tuned the Demand Response program to enhance the program’s effectiveness. EnergyConnect software platform is readily modifiable to incorporate these changes. Changes include: More precise CBL – now 4 of 5 days in a 45-60 day window Limit on participation to 70% of a 30 day window Enhanced documentation required, greater focus on price response Possible Weather Sensitive Adjustments PJM screening should reduce LSE/EDC denials The program remains a financial incentive to support the grid when under stress as reflected by high Real Time prices, and EnergyConnect is now the leading provider of PJM Economic CSP services. PJM fine tunes program, ECI responds

  14. New tool for more precise participationPrice Forecast and Response Notifier • EnergyConnect now sends the Day Ahead price for the following day to participants via email. This allows the participant to plan to better focus efforts on the hours most likely to be valuable to the grid and to the participant.

  15. Curtailment & Reduction Strategies

  16. Voluntary Participation in Energy Programs • Customers decide when to participate based on market prices or estimated market prices • Automated software confirms a DR transaction directly to the grid • Verification and settlement with grid embedded in the process

  17. EnergyConnect in the news

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