1 • Subtitle
New SV Clean Energy
PowerPoint Template
Resource Adequacy Capacity
Agreement with High Desert
Power Project, LLC
SVCE Executive Committee
April 26, 2024
Item 3
PRESENTATION
AMENDED
2 Request of Executive Committee
Staff recommends that the
Silicon Valley Clean Energy
Authority (SVCE) Executive
Committee recommend the
SVCE Board of Directors
authorize the Chief
Executive Officer (CEO) to
execute a Long Form
Resource Adequacy
Agreement with High
Desert Power Project, LLC
(“MRP RA Agreement”)
• 6-Year term RA Agreement with expected delivery
from January 1, 2027 through December 31,
2032; and
• 50 megawatts (MW) of baseload System and
Flexible Resource Adequacy (RA) capacity from
natural gas.
The 6-year MRP RA Agreement exceeds the
CEO’s authority under the Board-approved
Energy Risk Management Policy which
currently authorizes transactions for RA up to
five years in term.
Item 3
PRESENTATION
AMENDED
3 Background
California has established a Resource Adequacy (RA) framework to ensure each load serving entity has sufficient Capacity to meet grid Reliability needs
• California must ensure there is sufficient Capacity to meet Monthly Peak Demand
• RA rules are set to change starting in 2025 when Slice of Day (SOD) is adopted moving away from a Peak only monthly
accounting
• SOD requires LSEs meet RA requirements on a 12x24 basis • 12 months per year
• 24 hours per month
• Requirements based on “worst-day” each month
Item 3
PRESENTATION
AMENDED
4 Buyer has the rights to Capacity under a contract that ensures a resource generates when needed
• No Energy associated RA Capacity
• These contracts serve to meet RA Program
requirements
• RA-Only Capacity contracts primarily from natural gas resources
• Board has delegated authority to CEO to transact these types of contracts with less than 5 year terms
Resource Adequacy Only Capacity Contracts
Item 3
PRESENTATION
AMENDED
SILICON VALLEY
CLEAN ENERGY
5 SVCE Solicitation in March 2024
SVCE regularly
solicits for resource
adequacy, specifically
baseload RA
Baseload RA
contributes to RA
need in every hour of
the day
Natural gas,
nuclear, geothermal
and biomass are
baseload
• SVCE solicited for baseload RA
for any years between 2027
through 2031
• 3 offers received
• MRP's High Desert Project
(natural gas) offer was the most
competitively priced
Item 3
PRESENTATION
AMENDED
6 High Desert Power Project
High Desert Power
Project
• San Bernardino County
• 830 MW resource
• 50 MW of Flexible and
System RA
• High Desert Power
Project, LLC is a
subsidiary of Middle
River Power (also
owner of Hanford
resource)
• Delivery Term: January 1, 2027
through December 31, 2032 (6
years)
• SVCE will only procure the RA
capacity attributes
• No energy and emissions
attributed to SVCE
Item 3
PRESENTATION
AMENDED
7 Summary
SVCE seeking EC
recommend that the
BOD authorize CEO
to execute this
transaction
Planned for May 2024
BOD Consent
Calendar
• Resource Adequacy Program is set to
change with Slice of Day Framework
• Natural Gas resources provide baseload
RA in all hours of the day
• High Desert contract will make decent
progress in ongoing procurement
• SVCE ladders in procurement of RA to help
balance price fluctuations
• Contract aligns with SVCE’s Strategic Plan
Item 3
PRESENTATION
AMENDED
8 Questions?
Item 3
PRESENTATION
AMENDED
9 High Desert Aligns with SVCE’s Strategic Plan
Execution of the MRP
RA Agreement
supports the
reliability- and
compliance-focused
goals of the Board
adopted Strategic
Plan including:
• Goal 7 – Acquire clean and reliable electricity
in a cost-effective, equitable and sustainable
manner
o Measure 1 – Meet SVCE-Board directed
100% clean goals and Integrated
Resource Plan directives; RPS mandates;
RA obligations; and procurement
mandates
• Goal 8 – Manage and optimize power supply
resources to meet affordability, GHG
reduction and reliability objectives
o Measure 1 – Manage power supply
portfolio and energy risk, and optimize
market participation
Item 3
PRESENTATION
AMENDED
1 • Subtitle
New SV Clean Energy
PowerPoint Template
Hanford Hybrid Plant
Emissions Mitigation
Guidelines Proposal
April 26, 2024
Executive Committee Meeting
Item 4
PRESENTATION
AMENDED
2 Objective – Seeking Input
Purpose: discuss
Staff’s proposal for
the Hanford Hybrid
Plant Emissions
Mitigation Guidelines
for Exec Comm to
provide input.
• In April of 2023, the Board adopted Resolution No.
2023-06 approving a 12-year power purchase
agreement with Middle River Power for energy and
reliability products from its Hanford Hybrid Natural
Gas Power Plant and Battery Energy Storage System
• The resolution requires staff to develop a policy
and/or guidelines to set aside funds to be used for
programs and/or projects to help mitigate emissions
associated with energy produced by the Hanford
Hybrid Plant
• SVCE is proactive about ensuring its portfolio
management activities leave a net positive impact on
communities
Item 4
PRESENTATION
AMENDED
3 More on the Hanford Hybrid Plant’s Location
• Hanford is located Kings County,
which is in the San Joaquin Valley
• The population in 2021 was 58,470
• Hanford’s median household
income for a family of 4 is $43,200
• Hanford has been designated a
disadvantaged community as
defined by the 2022 version of
CalEPA’s CalEnviroScreen 4.0
Source for population and income data: U.S. Census Bureau and the City of Hanford’s website: https://www.ci.hanford.ca.us/.
Item 4
PRESENTATION
AMENDED
4 About the Hanford Hybrid Plant
• The Hanford Hybrid Plant is a hybrid natural gas peaker power plant and battery energy storage system that SVCE contracted with for twelve years to ensure that SVCE can meet its Resource Adequacy (RA) program obligations.
Item 4
PRESENTATION
AMENDED
Emissions Reduction
Battery
Storage
131.4 MWs/131.4 MWhs
Will shift energy to when
it is needed once per day
Colocated: Will economically
displace peaker energy
with grid charged energy
Peaking
Gas Unit Reliability
—•99.4 MWs
Primarily run for
grid reliability
Quicker startup - can
* generate within
10 minutes of being idle
5 About the Hanford Hybrid Plant’s Emissions
• Due to tight RA supply conditions, the Hanford plant is likely to have run through the end of the decade whether or not SVCE contracted for the unit
• The Hanford Hybrid Plant agreement is 12 years in duration, with the battery energy storage system and the natural gas peaker both starting October 1, 2024
• Projected energy dispatch expected to result in ~5,000 MT of CO2/year at start of contract period; the CPUC’s electric sector GHG emissions target for 2030 is 25,000,000 MT of CO2
• SVCE’s hybridization of the plant (i.e., addition of a battery energy storage system) is expected to decrease the utilization rate of the gas portion of the plant because the battery system will displace the peaker, likely resulting in yearly emissions decreasing over time
Item 4
PRESENTATION
AMENDED
Hanford Capacity Factor
6 Proposal for Hanford Hybrid Plant Emissions
Mitigation Guidelines
Objective
• Fund existing programs to help
reduce emissions from
greenhouse gases through
electrification activities in
disadvantaged or low-income
communities in Kings County
• Propose a funding amount that
can make a meaningful impact
and is worthwhile to spend
resources on
Impacts
• Guidelines require staff
evaluation of the effectiveness
of the fund disbursements
Key Elements of the Guidelines
1 Establishes the Hanford Hybrid Plant Emissions Mitigation Fund (“Hanford Fund”)
2 Hanford Fund will be used to fund existing local programs to help reduce emissions from greenhouse gases through electrification activities in disadvantaged or low-income communities in Kings County
3 Recommended one-time funding allocation of $750,000 to $1.8 million– for the entire duration of the Hanford contract (12 years) • This represents:
o 0.6% - 1.5% of SVCE’s total Programs Budget Allocation o 0.3% - 0.6% of the total not-to-exceed amount approved by the board for the Hanford Hybrid Plant Power Purchase Agreement over 12 years
4 Fund could be used to pay for activities led by organizations working in Kings County
5 SVCE staff will evaluate the effectiveness of fund disbursements 6 All funds in the Hanford Fund must be disbursed by June 1, 2036 Item 4
PRESENTATION
AMENDED
7 Option for Stakeholder Input
• An option or requirement could be included
in the guidelines for stakeholder input
• Stakeholder engagement process would
allow us to receive feedback directly from
Kings County community members
• Understand types of emission reduction programs
that would be most beneficial to Kings County
residents.
• What are community priorities?
• Guidelines could require collected feedback
be used to determine best course of action
for utilizing Hanford Hybrid Plant Emissions
Mitigation funds
Item 4
PRESENTATION
AMENDED
8 Conclusion
• The Hanford Hybrid Plant Emissions Mitigation Guidelines will enable staff to meet the Board’s directive to develop a policy and/or guidelines to set aside funds to be used for programs and/or projects to help mitigate emissions
associated with energy produced by the Hanford Hybrid
Plant.
• After the Executive Committee provides feedback on the proposed guidelines, staff will return with a modified
proposal for guidelines.
Item 4
PRESENTATION
AMENDED
• Subtitle
New SV Clean Energy
PowerPoint Template
Executive Committee Meeting
April 26, 2024
Hannah Gustafson, Senior Programs Specialist
Program Snapshot:
Priority Zone DCFC 2.0
(PZDCFC 2.0)
Item 5
PRESENTATION
• Implemented 2019-2021
• Defined 29 Priority Zones near older
multifamily
• Participating sites must receive CALeVIP
funding first
• No grants awarded, no installations
2 You may remember Priority Zone DCFC 1.0…
Example PZDCFC 1.0 selection map in Morgan Hill
Item 5
PRESENTATION
Morgan Hill
3 Priority Zone DC Fast Charging 2.0
Objectives:
• Encourage new DCFCs near
MUDs in charging deserts
• Support EVI in low-income and
priority communities
• Assess effectiveness in
accelerating MUD resident
adoption of EVs
Incentive:
• Up to $50,000 per port or 50% of
total project cost
• Goal: 10 DCFC ports across 4 sites
Program Funding:
• $875k SVCleanEnergy.org/dcfastchargers
Item 5
PRESENTATION
4 Timeline
July-Nov
2022
Dec
2022
Jan-March
2023
Application
window open
Application
Review and
Award
Selection
Site
Agreements
Executed (4)
• Site
Development
Begins
• Resident
outreach
planning
April 2023-
April 2024
April-Aug
2024
• Installations
Completed
• Resident
outreach &
education
We are here
Sep
2024
• Program close
and evaluation
of impact
Item 5
PRESENTATION
/
5 PZDCFC 2.0 Sites have installed 10 ports
4 ports
Monta Loma Plaza
Mountain View
1300+ MUD units
2 ports
Gas Station
Mountain View
500+ MUD units
2 ports
Public Parking Lot
Morgan Hill
700+ MUD units
2 ports
Gas Station
Milpitas
700+ MUD units
Now live!
Now live!
Now live!
Coming
soon!
Item 5
PRESENTATION
6 Early Learnings and Next Steps
• Early lessons learned:
• Decoupling from CALeVIP simplified process
• Applicants tend to be primarily EVSE vendors
• Grant awards work for sites that are "shovel-ready"
• Evaluate and learn:
• Conduct multifamily resident outreach & education
• Assess how well DCFCs meet the needs of multifamily
residents
• Assess EV adoption rates among multifamily residents
in Priority Zones over time Dual port charger (200 kW) with integrated battery storage in
Mountain View
Item 5
PRESENTATION