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Sustaining Sustainability. Monitoring and Verification as the Basis for Sustained Municipal Investment in Renewable Energy. Joseph LaRusso Energy Efficiency & Renewable Energy Finance Manager City of Boston. City of Boston Energy Planning . Integrated Energy Management Plan
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Sustaining Sustainability Monitoring and Verification as the Basis for Sustained Municipal Investment in Renewable Energy Joseph LaRusso Energy Efficiency & Renewable Energy Finance Manager City of Boston
City of Boston Energy Planning Integrated Energy Management Plan April 13, 2007 “Executive Order Relative to Climate Action in Boston”
Integrated Energy Management Plan • Procurement of energy from third party suppliers • Measurement and monitoring of energy consumption at all City facilities • Assessment of the suitability of all City facilities for distributed generation
April 13, 2007 “Executive Order Relative to Climate Action in Boston” • Reduce greenhouse gas emissions from government operations 7% below 1990 levels by 2012, 25% by 2020, 80% by 2050 • Adopt robust standards for new construction – all new City buildings must meet Silver LEED standard • Incorporate climate change into all formal planning and project review processes
PURPOSE: To implement the strategies and deliver progress on the goals stated in the Integrated Energy Management Plan and the Mayor’s Executive Order. Municipal Energy Management Program
Electricity Savings 2006 -2010 Fiscal 2006-10 27,309,536 kWh Savings Achieved Fiscal 2005 201,542,922 kWh Consumed RESULT: An estimated annual operating budget savingsof $3.5 million.
Avoided Costs Attributable to 2011 Electricity Efficiency Projects Avoided Cost $ 1,407,601 $ 1,491,212 $ 1,579,791 $ 1,673,630 $ 1,773,044 $ 1,878,363 $ 1,989,937 $ 2,108,140 $ 2,233,363 $ 2,366,025 $18,501,105 Year 2012 2013 2014 2015 2015 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Based on U.S. Energy Information Administration data for Household Energy Consumption and Expenditures by End Use and Energy Source (Electricity), Selected Years, 1978-2005, 5.94% average annual rate of increase. Amounts stated are not adjusted for inflation.
2011-12 Renewable Energy Projects Annual Value of ProjectkWhkWh Credits* RECs Archival Center PV 148,356 $ 19,286 $ 78,628** 400 Frontage Road PV 56,624 $ 7,361 $ 30,011** Moon Island Wind Turbine 4,097,000 $532,610$ 163,880*** TOTAL: 4,301,980 $ 559,257 $ 270,159 RESULT: $559,257 in estimated annual operating budget savings, plus revenue in the form of Renewable Energy Credits (RECs). • * Based on current estimated metered day-ahead rate of $0.13/kWh • ** Based on December 2011 SREC price of $530/MW. • *** Based on 1/4/12 Chicago Climate Futures Exchange Massachusetts Futures End of Day Summary of $40/MW for January 2012 contracts.
Making the Case for Renewable Energy − Monitoring and Verification − • The case for renewable energy must, in effect, continually be made— financial benefits as well as environmental benefits must be proved with data • The case must be made to constituencies both inside and outside municipal government • The promise of financial and economic benefits must be kept—the operational and financial performance of installed systems must remain optimal throughout their useful lives
Considerations that Drive the Need for Uniform Specifications • Legal Contract terms are limited to three years. • Practical It is difficult to swap out equipment every three years. Given time and human resource constraints, multiple monitoring systems will almost certainly result in inattention, extended component/system down times, and lost revenue.
Service Monitoring and Reporting Obligation Hardware
Service Monitoring and Reporting Obligation Hardware
Procurement Obligation: Services Disaggregated from Hardware Service Hardware Years 1 - 3 Years 4 – 6 Years 7 - 9
Uniform Specifications • Allow Disaggregation of Equipment and Service Simplifies periodic procurement of monitoring services. Encourages “grouped” municipal procurements. • Allow Frequent and Consistent Monitoring Facilitates uptake of data into reporting systems. Allows rapid assessment of equipment failures, minimizes downtime, maximizes financial return.
The Measure of Success • Confidence in the Financial and Operational Performance of Photovoltaic Systems Results in Sustained Municipal Investment • Acceptance of Renewable Energy Systems as the “Other Side of the Coin,” the Corollary and Companion to Municipal Energy Efficiency Efforts • Proves Financial Case of Renewable Energy to Taxpayers—the Public at Large—Accelerating Private Deployment of Renewable Energy Technologies.
Uniform specifications are not only the means to overcome technical communications and protocol issues, they are a means to foster the implementation of public environmental and energy policy.
City of Boston Municipal EnergyManagement Program Joseph LaRusso Energy Efficiency & Renewable Energy Finance Manager City Hall Room 805 One City Hall Square Boston, MA, 02201 (o) 617-635-3853 (c) 617-913-2528 joseph.larusso@cityofboston.gov Todd Isherwood Energy Efficiency & Renewable Energy Project Manager City Hall Room 805 One City Hall Square Boston, MA, 02201 (o) 617-635-2518 (c) 617-821-8388 todd.isherwood@cityofboston.gov