The URL can be used to link to this page

Home My WebLink About2017-12-12; City Council; ; Energy Storage Systems~ CITY COUNC I L ~ Staff Report Meeting Date To: From: Staff Contact: Subject December 12, 2017 Mayor and City Council Kevin Crawford, City Manager Jason Haber, Assistant to the City Manager Jason.Haber@carlsbadca.gov Energy Storage Systems Recommended Action Receive an informational presentation for City Council discussion. Executive Summary CA Review .J-f 5 Energy storage systems are expected to play an increasingly important role in optimizing electric grid efficiency, reliability and cost-effectiveness over time. They can help keep consumer energy costs down while allowing utilities to meet state-mandated greenhouse gas reductions by enabling renewable energy produced during off-peak (low-cost) hours to be stored and then deployed to satisfy more expensive peak-hour demand. Utilities can also use energy storage to defer or substitute for investments in other generation, transmission, or distribution assets. This item is intended to provide an introduction to energy storage systems and their potential applications in Carlsbad, and has been placed on the City Council agenda at the request of Council Member Cori Schumacher. Discussion Energy Storage -What is it? The CA Public Utilities Code defines an energy storage system as commercially available technology that can absorb energy, store it for a period of time, and then dispatch it later. An energy storage system may be centralized or distributed, and accomplishes one or more of the following: • Uses mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time. • Stores thermal energy for direct use for heating or cooling at a later time in a manner that avoids the need to use electricity at that later time. • Uses mechanical, chemical, or thermal processes to store energy generated from renewable resources for use at a later time. • Uses mechanical, chemical, or thermal processes to store energy generated from mechanical processes that would otherwise be wasted for delivery at a later time. December 12, 2017 Item #10 Page 1 of 4 Meeting SDG&E's Procurement Needs On September 11, 2017, Council Member Cori Schumacher and staff met with representatives from SDG&E's Growth & New Technologies Division to discuss their existing energy storage systems, future procurement needs and opportunities to deploy energy storage in Carlsbad. SDG&E is in the process of evaluating and prioritizing energy storage project opportunities at various locations in Carlsbad and throughout their service territory (i.e., schools, cool zones, energy centers, commercial and industrial sites, desalination/water/wastewater plants, public safety, administration and operations facilities). Staff remains in communication with SDG&E, and is prepared to assist SDG&E in its evaluation process, as needed. Community Choice Energy Portfolio Analysis As authorized by City Council Resolution No. 2017-141 on Ju ly 11, 2017, staff is working with the cities of Del Mar, Encinitas, and Oceanside to prepare a Community Choice Energy Technical Feasibility Study. That study will include an evaluation of energy storage potential in the portfolio scenario analysis used to determine program feasibility. The partner cities are in the process of finalizing a cost-share agreement and engaging a consultant to initiate the study, which is expected to take six to nine months to complete. Advanced Microgrid Demonstration Project On October 17, 2017, Council adopted Resolution No. 2017-199, authorizing the city manager to sign a letter of commitment to provide a demonstration site and match funding for the California Energy Commission's (CEC) Advanced Microgrid Demonstration Business Case Grant Funding Opportunity. Should the city be awarded the grant, the City of Carlsbad Safety and Service Center complex would serve as a microgrid demonstration site. A microgrid is a self- contained and managed energy system that serves a group of buildings or facilities and typically includes energy generation, advanced controls and energy storage. The CEC will notify grant award recipients in January 2018, and grant agreements are expected to be executed in June. The CPUC's policy goal for energy storage is "market transformation," and the benefits of this technology closely align with the city's Sustainability Guiding Principles, the Community Value of Sustainability and the Climate Action Plan. As such, staff will continue to monitor emerging technologies, legislative activity and market dynamics affecting energy storage opportunities in Carlsbad, and will keep Council informed, as appropriate. Fiscal Analysis No fiscal impact. Next Steps Staff will continue to engage SDG&E during their energy storage site evaluation process; the city's Community Choice Energy Technical Feasibility Study will commence in early 2018; and the CEC will announce their grant award recipients in January. In addition, SDG&E is organizing an upcoming tour of regional energy storage installations for local government representatives. 3 December 12, 2017 Item #10 Page 3 of 4 Environmental Evaluation (CEQA) Receiving this informational presentation is not a "project" under the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378, as it does not result in a direct or reasonably foreseeable indirect physical change in the environment. Public Notification This item was noticed in accordance with the Ralph M. Brown Act (California Government Code Section 54950 et seq.), published and distributed at least 72 hours prior to the meeting date and time. Exhibits None. 4 December 12, 2017 Item #10 Page 4 of 4 Jason Haber December 12, 2017 Energy Storage Systems Overview •Informational item / no action needed •Council member requested item •Energy storage technology •Legislative targets •Potential applications in Carlsbad •Uses mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time (either renewable, mechanical or fossil fuel sources). Energy Storage –What is it? •Peak shaving / load shifting & optimization •Microgrid / emergency backup •Grid capacity / resilience / reliability •Defer/avoid transmission & distribution infrastructure investments Energy Storage –Value Legislative Targets •SB 350 –RPS: 50% renewable by 2030 •AB 2514 –1,325 MW by 2024 (SDG&E 165 MW) •AB 2868 –500 MW storage (SDG&E 166.66 MW) Potential Applications in Carlsbad •SDG&E procurement –Transmission –Distribution –Customer –Site assessment Potential Applications in Carlsbad •Public-private partnerships –Municipal, commercial & industrial –Tesla , NRG, Solar Companies –CUSD, City Hall, Utilities –Solar + Storage PPA Potential Applications in Carlsbad •Community Choice Energy (feasibility study) –Portfolio scenario analysis (energy mix & rate impacts) –Customer incentives City of Encinitas in cooperation with the cities of Oceanside, Carlsbad and Del Mar ("city of Carlsbad REQUEST FOR PROPOSAL Community Choice Energy Technical Feasibility Study Potential Applications in Carlsbad •CEC Advanced Microgrid Demonstration Grant –Carlsbad Safety Center Solar Photovoltaics l i ~ Wind Turbine Next Steps •SDG&E site evaluation process –ongoing •CCE technical feasibility study –6 to 9 months •CEC grant awards –January 2018 •SDG&E energy storage tour –January 2018 •Staff will monitor and report back, as needed December 12, 2017 Energy Storage Systems