an integrated renewable energy plan for northern new mexico · • enable smart grid • matching...

An Integrated Renewable Energy Planfor Northern New Mexico

Luis A. Reyes, Jr.CEO

Kit Carson Electric Cooperative, Inc.October 25 & 26, 2018

Kit Carson Electric Cooperative, Inc. 2018 1

Kit Carson Electric Cooperative, Inc. (KCEC) has29,500 electric members, 6,700 Broadbandmembers and 3,100 propane members serving Taos,Colfax and Rio Arriba counties, including 2 Pueblos inNorth Central New Mexico. KCEC has approximately2900 miles of electric and high speed fiber opticlines.

KCEC has recently began constructing a distributedsolar fleet with storage integration to service 100%of KCEC’s daytime peak kW by 2022.

In 2016 Kit Carson exited from it long term All-Requirements Power Contract with its G & T, Tristate,and contracted with a Power Marketer, GuzmanEnergy, for KCEC power supply for the next 10 years.


Baseline Infrastructure is a High Speed Fiber Network

Kit Carson Internet serves over 6,700 customers including members who reside in areas where broadband was not available or service was limited. Additionally, to date the project has created 405 jobs, 90% which have been local; which were tied to physical main line construction. It has also given our local contractors and their laborers the experience and the skill sets to bid, and obtain projects outside the KCI service territory. This endeavor has greatly added to the economic viability of our surrounding communities. Broadband is the foundation for future economic development. KCEC has been deploying Fiber Services for electric operation since 2005.

Benefits of High Speed Fiber • Real Time Pricing• Enable Smart Grid• Matching and Adjusting Solar Loads with Battery

Storage• GB Commercial Service


Benefits of Broadband

• Economic development and load growth

• High speeds – 40 Mbps to 1GB

• Affordability - High Speed Access to all members

• Data reliability

• 82% of organizations now use Cloud services

• “Symmetric speed” - uploads and downloads simultaneously

• Better quality for VoIP users – Star to Star

• Improved collaborations – video conferencing

• Business security and productivity

• Home video streaming

• 2000 - Plains/Tri-State G & T’s merge, creates a 44 member G & T.• 2002 - WESC term increases from 2020 to 2040.• 2006 - WESC term increase to 2050. KCEC refuses to extend.• 2013 -1st Rate Case for Tri-State in NM before NMPRC.• 2014 - Begin Discussion with Tri-State on Exit of WESC.• 2014 - 2016 – Due Diligence and Exit Work with Tri-State, Third Parties,

RUS & CoBank• 2016 - Solicit a New Power Supplier• July 2016 - Exit from TS complete, New PPA with Guzman Energy

Commences• December 2016 - Begin 100 % Solar Daytime Peak Project• 2018 - Release Storage RFP

Power Supply History


The Landscape Is Changing


Tristate Exit Facts

• Exited Tri-State July 1, 2016

• Expected to save $63m over 10 years

• 10 year contract

• KCEC will pay the buy out amount of $37M by 2022

• Signed NDAs


Expected Financial Benefits of Solar Plan

• Over the next several years the cost of renewable energy (solar and storage) will decrease by over 40%.

• believes renewables, and solar in particular, will be the main driver of the U.S. energy growth in the next decade.

• Solar will contribute more than 1,400 GW of installed capacity nationwide, accounting for 17% of electricity generation mix and nearly 38% of all investments in the energy sector through 2030.

• We also expect solar competitiveness to continue to improve as the cost of installations decline further.

• Within 5 years we believe the cost of solar to decline by almost 25%.

• There will be addition cost savings as more advanced technology comes online and with energy efficiencies


Solar Plan Timeline• Achieve 100% Daytime Renewables by 2023

• 2016 - 2017 – Announcement of the Solar Plan, 10 MW installed and activated.

• 2018 - 4-6 MW installed and activated, RFI / RFP for a storage partner, NREL Solar Energy Innovation Network participation.

• 2019 - Integrating New Technologies: EV charging stations, additional 4-6 MW, locate optimal place for battery storage.

• 2020 - 2021 - Add 4-6 MW, analyze first financial savings.

• 2022 - Greater System Reliability, Emergency Preparedness and approximately a 40% Cost Savings energy savings.

• Partnerships – Town of Taos, Village of Red River, Village of Angel Fire, Village of Eagle Nest, Village of Questa, Picuris Pueblo, Taos Pueblo, UNM, NNMC, Chevron, RCCLA, School Districts, Private land owners, a truly community project

• Arrays are built by a local solar company, Sol Luna Solar


Current Renewable Goals

• 35 - 40 MW Solar (1 MW Scale) and Battery Storage (100 % Daytime)

• 2018 - Release Battery Storage RFI

• 2019 – Implement Battery Storage

• NREL Solar Energy Innovation Network

• April 2018 Press Release

• Replication Symposium June 2019

• Continued Broadband Implementation for “Smart Grid” integration

• ARRA “Fiber to the Home” grant awarded 2010 and completed 2015

• Researching new technologies in the move toward 5G

National Renewable Energy Labs

12

National Renewable Energy Laboratory (NREL), the U.S. Department of Energy (DOE) Solar EnergyTechnologies Office’s Solar Energy Innovation Network (SEIN) and Kit Carson Electric Cooperative,Inc. will be working together for the next 18 months to on a project called, the Resilient RenewableEnergy Roadmap for Rural Electric Cooperatives. The focus is to pilot KCEC’s 35MW solar projectwith battery storage and model how to address the nation’s rapidly changing electricity needs.

Goals• Develop solutions for improving reliability and affordability of solar energy through options

analysis and systems design.• Focus on evaluating the grid impacts and costs anticipated for various penetration levels of solar

and other distributed energy resources (DER).• Provide available data and work in coordination with program staff to model approaches to

minimize costs for combinations of solar and other DERs.• Pilot and test approaches and document through case studies.

Kit Carson Electric Cooperative, Inc. 2018

National Renewable Energy Laboratory

13

Project Outcomes• Develop a KCEC service area energy roadmap to achieve goal of 35to 40

megawatts (MW) of renewable energy electricity supply by 2022.• Complete one case study of a pilot solar PV technology system installation with

the intent of broader replication.• Demonstrate an operations model for rural electric cooperatives (RECs) to

integrate DERs with storage into their portfolios including behind the meterapplication.

• Participate in regional resilient energy planning efforts.• Develop a business model with best practices and build the internal capacity to

make the resilient and renewable energy transition.• Advance an education program on options for integrating resilient, renewable

electricity supply for cooperatives.

Kit Carson Electric Cooperative, Inc. 2018

NATIONAL RENEWABLE ENERGY LABORATORY 14

TRI-STATE G&T service territory

KCEC operation region (New Mexico)

Solar arrays KCES owns and operates

Solar arrays under development Kit-Carson plans to install up to 35 to 40megawatts of solar generation by 2022 thissummer around Taos, with a goal of achieving100% day time solar

To achieve even higher PV penetration levels, NREL will develop a planning tool for KCEC that helps plan and achieve this goal.

NREL Modeling Project Summary

Ensure that any new PV installations complies with applicable interconnection standards

The tool should be able to :

Estimate reverse power flows at the substation level for a given load and PV forecast

Identify potential bottlenecks in the network (both current and voltage constraint elements)

NATIONAL RENEWABLE ENERGY LABORATORY 15

Energy Storage market inthe United States continues to evolve.

Both the technology mix and application mix have changed substantially over the last 5 years.

We expect the evolution of the energy storage market to continue with commercially viable solutions to be available in the next 3 to 5 years.

Storage solutions in the current market environment make most sense where a combination of the following 3 factors are available:

• High electricity rates (CA, MA, NJ)

• High renewables penetration (TX, CA)

• Availability of storage subsidies (CA, NY)

AK

30.5

AZ-

AR

580.5

CA

2.8

CO

2.9

FL

58.7

HI

0.1

ID

IL

157.0IN

-

IA

0.5

LA

9.0 DE

10.5 MD

- DC

1.7

MI

2.4

MN

- 0.2

MS AL

4.1

MO

0.1

MT

-

NE

0.1

KS

50.0

NV

0.6

3.6

NM

1.6

NC

26.1 76.3

0.4

OK

10.2

OR 70.5

NY

145.8

PA

- RI1.7 CT

-

1.0 SC

GA

-

ND

-

SD

KY

0.0 TN

70.4

TX

5.2

UT

5.4 1.3NHVT

19.2

WA

OH67.0 0.2

1.0 WV VA

-

WI-

WY

1,501.1

US

< 5MW

5-55MW

> 55MW

No storage

CA: 1.3GWstorage

mandateby

2020

HI: KIUC SolarCity

20-year PPA17MW

solar + storage

HECO plansat

least 90MW

PJM: 265MW+operational for

frequency regulation

NY: Storage subsidy in New York

City; Con Edison announces

1.8MW ‘virtual power plant’

demonstrationproject

IN: 20MWAESIndiana project first

project in MISO

TX: Austin targeting 200MW by

2024; Duke Energy repowered

36MW, added 2.2MW for

renewables integration;

1.7MW storage in microgrids

VT:4.3MWinstalled in

microgridprojects

ME MA: $10m Energy

Storage Initiative

7.0 MA

for PGE and

PacificCorp

Ontario, Canada: Grid operator

contracted 50MW of storage

WA: $14.3m grant for

storageprojects

OR:5MWh

procurement59.6 target by 2020

AZ: Tucson Electric

Power awards two 10MW

projects

16.1 NJ NJ:$300/kWhincentivefor

projects

Recently Announced Energy Storage Projects (MW)

0%

25%

50%

75%

100%

2011 2012 2013

Technology mix of commissioned energy storage projects (MW)

Compressed air energy storage

Lithium-ion batteriesFlow batteries

Supercapacitors

2014 2015 H12016

Sodium sulphur batteries

Lead-based batteries Flywheels

Sodium nickel chloride batteries

Energy Storage Market Environment

Battery StorageCurrently Underway - Power storage and diversification of power sources are a key to future price stability. Solar is our members’ supply of source but intermittent, thus storage is key.

• RFI

• RFP

• Estimating 3-4 MW of Storage in 2019

• 4-6 MW in 2020

Potential Benefits

• Intelligent energy storage and frequency regulation

• Increased grid resilience and Stability

• Enhanced efficiency of renewables

• Cost Savings• Reduce KCEC peak energy demand by

at least 3MWs as metered for transmission purposes

• Self-supply Spinning Reserves Schedule 5 as defined in PNM OATT

• Peak Shaving• Rate Design Enhancements• Rates around an asset• Dynamic pricing


Electrify Everything

Solar Panels

Electric Water Heater

Electric Vehicle

Electric Heater

Battery Storage


Electric Vehicles are the Future

NationallyThe Fourth Industrial Revolution in energy and transportation systems is upon us and New Mexico must deploy critical charging infrastructure today while anticipating the mobility transformation.

LocallyDeploying the first charging stations in the KCEC Service Area in anticipation of the transportation transformation and as a tool to encourage tourism.


A New Business Model Is Emerging

Rate Design

Tariffs

Governance

Forecasting

DecouplingBroadband

Solar Energy and

Battery Storage

Electric Vehicles

Resilient Two

Electric Grid


The New Energy Future


Thank you


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