2019 Reliability Request for Offers (RFO) Webinar · RFO Schedule Date Action October 14, 2019 RFO...

2019 Reliability Request for Offers

(RFO) Webinar

October 23, 2019

1

CLEAN POWER ALLIANCE

Agenda

● Housekeeping

● CPA and RFO Overview

● Project Eligibility

● Communications and RFO Q&A Process

● Project Evaluation and Selection

● Webinar Q&A

● Wrap Up

2


Introductions

Clean Power Alliance

Natasha Keefer

Director Power Planning

& Procurement

Ascend Analytics

David Millar

Director, Resource

Planning Consulting

Ascend Analytics

Daniel Weingarten, PhD

Senior Energy Analyst

3


Housekeeping

● Audio – Disabled but please keep phone on mute

○ Questions during the webinar must be submitted via the text chat

window during the webinar. Questions will be answered in the time

available at the end of the presentation.

■ Additional questions should be emailed to cpa-storage-

[email protected]

■ All submitted questions will be answered along with all emailed

questions in the Q&A responses posted on Nov 1.

● Video – Disabled

● This presentation will be available after the call

4

mailto:[email protected]


Who is CPA

● A Joint Powers Authority,

CPA has 31 member

jurisdictions within Los

Angeles and Ventura counties

● CPA launched service to

customers in February 2018

● CPA serves over 1 million

customer accounts and is the

largest CCA in the state

5


RFO Overview and Goals

● Goal: Solicit and evaluate offers from energy storage facilities to

meet CPA’s incremental capacity procurement obligations, to

achieve its environmental objectives, and to offer its customers

cost-competitive, clean energy options

● CPA seeks to enter into one or more long-term Power Purchase

Agreements (PPAs) with energy storage facilities in the range of

10-100 MW of 4-hour duration capacity

● All bidders must submit conforming offers

6


RFO Schedule

Date Action

October 14, 2019 RFO issuance and Q&A open

October 23, 2019 Bidder Webinar to discuss RFO process at 3:00pm PT

October 25, 2019Deadline to submit Q&A questions. Submit questions to:

[email protected]

November 1, 2019 Q&A responses posted to the CPA RFO website

November 11, 2019 Deadline to submit RFO Proposals at 5:00pm PT

December 19, 2019 Bidders notified of shortlist status

December 2019 –

May 2020PPA negotiations and awards*

7

*Fast Track Eligibility - Projects with online dates on or prior to August 1, 2021 will be on an expedited

negotiation and contract award schedule



Project Eligibility

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Contract Type

• Tolling agreement for standalone energy storage

facilities capable of offering Energy, Resource

Adequacy (RA), and Ancillary Services.

Installed Capacity

• No less than 10 MW and no greater than 100 MW

capacity with 4-hour duration.

• For each compliant project, Bidders may also

submit one (1) alternative offer with a duration

shorter than 4 hours (see protocol for details)

Contract Term • 15 years

Location• Within or outside of California, with deliverability

to the CAISO grid.

COD • On or prior to August 1, 2023


Project Eligibility (Continued)

9

Scheduling

Coordinator• Buyer

Pricing• Fixed $/kW-month with zero percent (0%) annual

escalator

Pricing Offers

• Bidders may submit two (2) offers per facility. This

includes one (1) primary pricing offer and one (1)

alternative duration offer as discussed under

“Installed Capacity”

Seller Security

Requirements• $90/kW of Contract Capacity

Additional guidance is provided in detail in the

RFO Protocol and CPA Form Agreements


Ascend Analytics’ Role

● Ascend Analytics will be supporting CPA’s initiative by

administering and organizing the RFO and analyzing project

economic value

● Ascend Analytics offers the following:

○ Standardizing and collecting all submitted data

○ Using advanced sub-hourly software analytics engine to

ensure accurate and consistent project evaluation

10


Communication

● All documents are posted to the RFO website.

● Email alerts or Developer Notifications are distributed through

Ascend. Register on the RFO website for alerts and

notifications.

● CPA and Ascend Analytics will NOT accept phone calls

regarding this RFO

○ All communication must be in the form of email

● RFO Website: https://www.ascendanalytics.com/cpa-storage-rfo

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https://www.ascendanalytics.com/cpa-storage-rfo


Q&A Process

● All questions due by October 25 in writing to

[email protected]

● All questions responded to in writing and posted to RFO

website on November 1, 2019

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NOTE: If it is discovered that a Bidder contacts and receives

information from any CPA personnel, board director or alternate

outside of this Q&A process, CPA may, in its sole determination,

disqualify such Bidder’s proposal from further consideration



Project Submittal Process Overview

● Projects bids should be submitted via email to CPA-storage-

[email protected] by the submission deadline with a subject

line of “CPA 2019 Storage RFO Submission”.

● Submissions must include the following attachments, as detailed in the

RFO Protocol:

i. Fully completed Offer Form template

ii. Project Narrative

iii. Redlined energy storage agreement

iv. Executed non-disclosure agreement

v. ArcGIS file of project’s geospatial footprint

● To access RFO materials, participate in Q&A, and receive notifications, all

Bidders must register online at: https://www.ascendanalytics.com/cpa-

storage-rfo.

13




Quantitative Evaluation

● Proposals will be evaluated based on energy and capacity value

● Valuation will be performed using Ascend Analytics’ storage

optimization tool, optimizing dispatch for maximum revenue

across day-ahead, real-time, and ancillary markets

○ In order to qualify for RA capacity, all projects will be

modeled as bidding all capacity (assessed as a 4-hour

duration resource) into the DA market during the hours of 4-

9pm (HE17-HE21)

○ All undispatched capacity remaining after DA market

clearing will be optimized for dispatch in RT and ancillary

markets

● All projects will be assessed for market performance against the

relevant project Pnode

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Evaluation Criteria

● Individual projects will receive a rank for each of the following

criteria:

● CPA will also be collecting data on projects that may not be

used directly for project ranking but will assist in screening

projects for short-list eligibility

● CPA reserves the right to remove short-list eligibility for any

project with an identified material risk

Environmental Stewardship

Workforce Development

Quantitative Evaluation

Development Risk

Project Location

Benefits to DACs

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Contracting

● Offers will be evaluated holistically, including any desired

revisions to standard terms

● Bidders must submit any proposed changes to CPA’s forms of

PPA and term sheets via redline along with bids no later than

the RFO deadline of November 11th

● CPA does not intend to provide collateral or performance

security in connection with any PPAs that it may execute in

connection with this RFO

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NOTE: Changes to CPA’s standard contract terms submitted

after the response deadline may result in disqualification of

the offer and forfeiture of the Shortlist Deposit


Wrap Up

● October 25 is the deadline to submit questions to

[email protected]

● November 1 the Q&A will be posted on the RFO website and

CPA Website: https://www.ascendanalytics.com/cpa-storage-rfo

● November 11 is the deadline to submit RFO Proposals

● Webinar recording will be posted to RFO website and CPA

Webpage

17



CLEAN POWER ALLIANCE 18

Q&A

CLEAN POWER ALLIANCE 19

Appendix


Developer Risk

Projects will be ranked from High to Low

● The developer risk metric is a composite rank based on a

number of factors impacting project risk:

○ Site control

○ Interconnection status

○ Environmental screens

○ Land use and permits

○ Project financing

Slide 20


Environmental Stewardship

Projects are ranked high, medium, neutral, and low based on

the following prioritization:

• Demonstrates multiple benefits (provides additional societal,

health, economic, water saving, or environmental benefits beyond

the climate and GHG reduction benefits of renewable energy)

HIGH

• Located in an area designated as a preferred renewable energy

zone and received required land use entitlement permitsMEDIUM

• Project is located in a high conflict areaLOW

Slide 21

• Project does not demonstrate either preference or avoidance

criteria NEUTRAL


Workforce Development

Projects will be ranked high, medium, and low based on the

following prioritization:

• The project will use targeted-hire, union labor, or multi-trade

project labor agreements (including requirements for state-

apprenticeship graduates)

HIGH

• The project does not have a labor agreement, but can

demonstrate prevailing wage, union labor, and targeted hire

commitments

MEDIUM

• The project does not demonstrate prevailing wage, union labor,

and targeted hire commitmentsLOW

Slide 22


Project Location



• In Los Angeles and Ventura countiesHIGH

• Other counties within CaliforniaMEDIUM

• Out of state projectsLOW

Slide 23


Benefits to DACs



• Located within a DAC and demonstrates DAC

workforce and community development benefitsHIGH

• Project not located within a DAC but can

demonstrate DAC benefits and has completed

community outreach

MEDIUM

• Project does not demonstrate DAC benefitsLOW

Slide 24

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