1 Environmental Stakeholders Update Solar Integration The - PowerPoint PPT Presentation

Environmental Stakeholders Update Agenda • Solar – Utility Scale – New Solar Rate – Net Metering Changes • Electrification – On Road – Off Road • Energy Efficiency – Rebate Programs – Pace Place LEDs, Insulation – Behavioral Programs images here. – Tracker (Payson/Melissa) – MyWay 1

Environmental Stakeholders Update Solar Integration The integration of solar photovoltaic technology (PV) into customer offerings and the JEA business model 2

Solar Background – Utility and Customer 1999 – JEA Solar Technology Demonstrations  22 Duval County public schools  Jax Zoo, FSCJ, Jacksonville University  Jax Chamber, Jax International Airport 2010 – JEA Utility Scale Solar – Large solar arrays used to supply solar energy to JEA grid  Jax Solar Project - 12 MW solar facility  Started generation - Summer 2010 JEA has supported the development of solar technologies since 1999 3

Solar Background – Utility and Customer Customer-Owned – Solar arrays installed at customer facilities, typically roof tops.  2009 - Customer-Owned Solar Systems JEA Net Metering Policy established:  Support for emerging renewable energy technologies.  Guidelines for connection of customer- owned solar systems to the JEA grid.  Billing and payment methodology for buying and selling electricity to/from the JEA grid.  Credits for solar energy at the JEA Retail Rate as incentive for solar. JEA has supported the development of solar technologies since 1999 4

Solar Background – Technology and Market has Changed Cost of solar continues to decline:  Nationwide Median  2005 $9.00 per watt  2010 $7.00 per watt  2013 $4.69 per watt  2015 $3.70 per watt  Florida  2015 $2.61 per watt  FL has lower utility rates Photovoltaic (PV) System = Solar System Technology and cost improvements drive changes in policies and products 5

Solar Background – Technology and Market has Changed Accelerating Growth of JEA Customer-Owned Solar Generation  220 JEA customers installed PV solar systems from 2009 to 2014.  304 new systems have been installed in the last five quarters.  98 new systems in Q1 FY16 Technology and cost improvements drive changes in policies and products 6

Solar Integration Objectives A Holistic View of Policies and Products 1- Grow JEA’s solar resources  Increase the number and diversity of new solar arrays in the JEA service territory 2- Grow customer offerings  Identify and implement new value added products that are made available as a result of the JEA’s new solar arrays 3- Align customer-owned solar pricing policies to current market conditions  Ensure that solar and non-solar customers are paying their fair share for the use of and access to the electric system infrastructure. Solar Integration can result in benefits for both solar and non-solar customers 7

Objective 1- Growing the JEA’s Solar Resources Policy  The JEA Solar Photovoltaic Policy establishes goals for increasing JEA’s solar generation portfolio from the current capacity of 12 MW to a total of up to 50 MW by the end of 2016. Planning  JEA has already signed agreements for six solar farms to be installed in Jacksonville with a generation capacity of 25.5 MW.  JEA is negotiating agreements for 11 MW additional solar generation.  Cost of solar energy is higher than current energy costs  Provides a hedge for CO2 regulations (111.d)  Allows JEA to offer solar energy sales to customers Operations  The first of the new solar farms are expected to start producing solar energy by July 2016. JEA will increase its solar generation capacity by over 300% by December 2016 8

Objective 1- Growing the JEA’s Solar Resources Project Name Size (MW ) 1- Montgomery Solar Farm 7.0 2- Blair Site Solar 4.0 3- Old Plank Road Solar Farm 3.0 4- Imeson Solar Farm 5.0 5- Simmons Road Solar 2.0 6- Starratt Solar 5.0 7- SunE Solar Farm 4.5 8- Soutel Solar 1.0 9- Yellow Water 5.0 Total MW 36.5 Solar Resources will be geographically distributed to reduce negative system impacts 9

Objective 2- Grow Customer Product Options Policy  JEA’s Solar Photovoltaic Policy also allows for the energy produced from JEA’s new solar arrays to be made available to JEA customers through new product options. Planning  JEA is proposing that a new solar rate be established that provides customers the rights to the energy produced by the new solar arrays.  The solar rate will be slightly higher, approximately 10%, due to the higher cost of solar energy.  JEA will be selling the solar energy “at cost,” as it does for the fuel used to generate electricity.  Customers can enroll for a portion or all of their energy to come from JEA’s solar arrays. Operations  The proposed new solar rate would be open for subscription as early as July of this year as we bring the first new solar array online. JEA Customers with tree canopies can “Go Green” with JEA supplied solar power 10

Objective 3 - Align Customer Sited Solar Pricing with Current Conditions  Present  JEA’s Net Metering Policy initially established in 2009 supported solar technologies by:  Not adjusting solar customer pricing to recover their cost of service  Buying excess electricity at prices significantly higher than normal electricity prices  Recommended Changes  Modify the rate which JEA pays for excess electricity from full retail ($0.12/kWh for residential) to JEA’s cost to acquire solar energy, $0.075/kWh for 2016 (updated annually).  Require new solar customers to receive service under a demand rate if adopted in the future  A demand rate ensures the appropriate recovery of the costs to serve solar customers  Note: JEA is in the process of piloting a residential demand rate Alignment removes the subsidies paid by non-solar customers to solar customers 11

The Integration of Solar Expands our Community’s Energy Options “Got Solar?” 12

Environmental Stakeholders Update Electrification Cost effective transition from fossil fuel powered to electrically powered end uses 13

Non-Road Electrification Examples • Forklifts • Truck Refrigeration Units • Shore Power • Cranes • Baggage Handling Equipment • Custom Projects 14

Non-Road Electrification Benefits • Environmental improvements for the community • Lower emissions and operating costs for customers • Off-Peak load growth for the JEA system • Rate stability for customers Lifecycle Site Emission Reductions JEA Non-Road Electric NOx (tons) CO2 (tons) NRE Results First 12 Months Technologies - 126 Electric Golf Cart • Pieces of Equip converted = 247 Truck Refrigeration Unit 3 309 • Off Peak kWh = 5,067,135 Conventional Charge Forklift 398 104,077 • On Peak kWh = 2,728,458 Ground Power Unit 21 1,089 52 13,598 Rapid Charge Forklift • Total kWh = 7,795,593 Totals 474 119,199 Electrification benefits community, business development and all customers 15

JEA and Electric Vehicles Leadership Role among Community Stakeholders • Address Barriers to Adoption – Education – Range Anxiety – Up Front Costs • Program Elements – Outreach events – Vehicle rebates – Deployment of charging infrastructure – Workplace Charging • National/State Involvement – Electronic Drive Transportation Association – Drive Electric Florida DOE WPCC Recognition! 16

JEA and Electric Vehicles Public Infrastructure Partnership North FL Transportation Planning Organization - JEA 27 Public Charging Stations 47 Electric vehicle charging spaces Reducing “Range A nxiety” through the purposeful placement of charging stations 17

Plug-in Electric Vehicles (PEVs) in North Florida 731 514 (Duval – Clay – Nassau – St Johns) Activation of JEA PEV 255 Programs 102 15 2011 2012 2013 2014 2015 Continued growth despite the significant reduction in gasoline prices 18

Environmental Stakeholders Update Efficiency Rebate Programs Cost effective transition to more efficient energy use 19

Efficiency - Rebate Programs Efficiency Rebates  Residential and Commercial rebates provide customer incentives to upgrade homes & businesses to more efficient equipment.  LED Lighting upgrades, insulation, HVAC and boiler/cooler upgrades, solar screens, and custom chillers top the list of upgrades.  Since JEA began its Energy Efficient programs, in 2008, customers have benefited from:  $10,202,997 in Residential rebates, including lighting.  $ 2,915,479 in Commercial custom rebates  $ 4,299,479 in Commercial prescriptive rebates, and  $ 1,247,751 in Commercial small business rebates. Investing in a more efficient community 20

Efficiency - Rebate Programs Residential Efficiency Rebates for 2016 • LED bulbs • HVAC replacement • Attic Insulation Providing efficiency rebates on cost effective efficiency products and services 21

Efficiency - Rebate Programs Chow Down Alley Lighting Commercial Efficiency Rebates for 2016 • Prescriptive and Custom Applications • Lighting • Heating and Cooling • Door gaskets for glass/solid doors • Variable frequency drives (VFD) Duval County Schools HVAC Gardner Lighting Retrofit Times Union Lighting Providing rebates on cost effective efficiency products and services 22