Efficiency Maine Commercial and Industrial (C&I) Custom Program Distributed Generation Projects 1
Agenda C&I Custom Program Distributed Generation Projects Eligibility & Incentives Scoping Audits Technical Assistance Studies Funding 2
C&I Custom Program 3
Distributed Generation (DG) Projects Reduction of grid-supplied electricity (behind the meter) Minimum incentive: $10,000 EMT will pay for a limited time up to 70% of project cost (vs. 50%) up to $1 million Minimum annual electricity reduction: 36,000 kwh Contract required for all projects Contract will include metering requirements 4
Project Requirements Operating efficiency of 60% or greater Must supply 15-minute metering data to EMT with EMT-specified metering Offset existing grid-supplied electricity (i.e. not for export to the grid or other customers) Must pass EMT s benefit cost test 5
Other Custom Program Requirements Must be cost effective All projects must have a benefit-to-cost (B:C) ratio of 1.0 or higher B:C ratio = Total Benefit Total Cost Benefit = net present value of the avoided cost of energy saved by the implementing the project Cost = all of the project costs including labor, material, engineering, etc. 6
CHP Cost Effectiveness Guidelines 24-hour electric demand that exceeds the nameplate electric output rating of the unit Thermal loads that allow for 100% utilization of the thermal output Installed cost of $4,000 per kw or less 7
Incentives Incentive amounts will be the lessor of: $1 million 70% of the project cost (limited-time offer) Amount required to buy down the project to a one year payback with the incentive 8
Implementation Timeline for Bonus Complete applications submitted by May 1, 2017 See DG Program Opportunity Notice (PON) Complete TA studies submitted by April 1, 2017 (if applicable) Contract signed by June 15, 2017 Proof of financial commitment by June 30, 2017 9
Project Readiness Participants need to demonstrate that internal company approvals are in place Incentives must help meet capital planning criteria Participants must provide commitment letter(s) for matching funds, including any third parties Awards will be first-in, first-ready 10
Qualifying Distributed Generation Examples Including but not limited to: Reciprocating engines Anaerobic digesters Organic Rankine cycle 11
Contract Contract with EMT required for all DG Projects Contract will include: Milestone Payment Schedule Measurement & Verification requirements Final incentive may be adjusted based on as-built savings and costs 12
Ineligible Projects Measures available through Efficiency Maine s C&I Prescriptive Program Lighting measures that fall into one of the 20 categories listed under the Design Light Consortium (DLC) Technical Requirements Power quality, power factor or power conditioning projects Projects with paybacks less than 1 year with the incentive 13
Ineligible Projects Seed money for projects to be completed or funded subsequently Measure required by state or federal law Projects for which the customer has already made binding commitments prior to award Measures that rely on human behavior or facility maintenance Feasibility studies 14
Scoping Audits Targeted toward companies who may not have engineering staff on site Online form followed by a phone screening No cost to the participant Potential projects may be referred to A&E firms for further development 15
Technical Assistance Technical Assistance must be pre-approved by Efficiency Maine prior to conducting the study Study must be for a Distributed Generation project that will qualify for the program The study must result in an investment-grade report submitted to EMT Must be completed by a professional that has experience with the technology 16
Technical Assistance The application should be accompanied by: Description of the measure(s) being studied Methodology for estimating savings Description of the facility where the study will be done Detailed scope of work and budget Qualifications of those performing the study 17
Technical Assistance Efficiency Maine will provide 50% of the Technical Assistance Study up to $20,000 Approved TA Study Customer cost $14,000, EMT pays $7,000 Customer cost $40,000, EMT pays $20,000 Customer cost $50,000, EMT pays $20,000 18
Funding The program is open and funds are available ($3.3 million) Entities may apply up to 3 years of their annual cap limit to one project provided it meets all other criteria in the DG PON E.g., $3,000,000 incentive Paid out in three $1,000,000 installments over 3 successive fiscal years Extra Large Projects - XL PON 19
http://www.efficiencymaine.com/at-work/commercial-industrial-custom-program/ 20
Contacts Chuck Porter 622-6888 ext. 507 cporter@ers-inc.com Mike Watson 622-6888 ext. 409 mwatson@ers-inc.com 21