Date post: | 16-Jan-2016 |
Category: |
Documents |
Upload: | enervision |
View: | 76 times |
Download: | 0 times |
GEMC Solar DG Workshop:Policy Considerations for
EMCs
Barry BirkettVice PresidentEnerVision, Inc.
April 21, 2015
2
Topics
Fulfilling EMC Obligations Under the Cogen Act
Interconnection Agreements Metering of Member Solar Installations Compensation for Energy Generated by Solar
Installations What is Avoided Cost? What is Georgia Power is Doing? Proposals to Change Utility Obligations Other Considerations
3
EMCs’ Obligations Under Cogen Act
1. Bidirectional or single direction metering
2. Written agreements with members
3. Costs of distributed generation recovered from generating customers
4. Rates charged for metering and interconnection approved by EMC board (or appropriate governing entity)
4
Interconnection Agreements
Written agreements with member requirements
Generation meets national safety requirements at the generator’s expense
EMC may adopt additional requirements
Selling energy back to EMC can’t subject generator to increased requirements
5
Metering Customer Solar Facilities
Bidirectional metering for solar on member’s side of the meter
Dual metering for solar on the EMC side of the meter
Cogen Act does not say who decides where solar facilities are connected
GPC leaves decision to the installer of the facilities
6
Compensation for Solar Energy
With bidirectional metering:
–Generation offsets consumption–Excess consumption billed to
member–Excess generation credited
7
Compensation for Solar Energy
With dual metering:– All member consumption billed– Generation credited
EMC purchases of solar generation– Not required to pay more than avoided
energy cost– No obligation to purchase if total
renewable capacity exceeds 0.2% of EMC’s prior year peak
8
What is Avoided Energy Cost?
Cost of the kWh not needed by the EMC due to the member’s solar generation
Depends on EMC’s purchased power contracts
Could theoretically be $0, or even negative
Does not include capacity cost
9
Avoided Energy Cost Examples
If fixed energy price = 3¢ → avoided energy cost = 3¢
If generation avoided → avoided energy cost = variable cost of avoided generation
If EMC subject to energy settlement → avoided energy cost = settlement price
If no energy purchase is avoided → energy cost may be $0
10
GPC Avoided Energy Cost
Calculation established by PSC in 1994
Calculation modified in 2010 to reflect solar generation profile
Capacity credit paid when GPC avoids capacity
11
Proposals to Change Obligations
Proposals applicable to GPC but may shape EMC future
Value of Solar
Request to modify GPC avoided cost calculation
12
Value of Solar
Favored by solar advocates
Proposed for use in Georgia
Includes adders beyond avoided energy cost
13
Proposed Change Regarding GPC Solar Purchases at Avoided Cost
Request filed this month by Georgia Interfaith Power & Light
Proposal to better align avoided energy cost with price paid under long term solar purchases
14
Other Considerations - Policy
Current requirements may be changed
Should billing treatment of all member solar options be treated the same?
Should treatment of EMC solar be consistent with third party solar?
15
Other Considerations - Rates
Protection from subsidization by customers without solar a consideration in Cogen Act
Avoiding subsidies involves:– Recovering generation costs from
generators– Proper avoided cost rates– Retail rates with appropriate price signals
Energy charges based on avoidable cost
16
How will you respond to the challenges of solar?
THANK YOU!
Barry BirkettVice President
4170 Ashford Dunwoody RoadSuite 550
Atlanta, GA 30319678-510-2912 (office)