Purpose If the customer s proposed project proceeds to Gate 1 of the Integrated Customer Solutions (ICS) process (see the ICS Process and Proposal Submission Guide), the customer must prepare a Load Displacement Feasibility or equivalent that meets the requirements below. This document sets forth the basic guidelines for a LDFS for a proposed Load Displacement project either within a new plant or within an existing facility. The scope and requirements outlined below provide guidelines; it is not a template. The customer must investigate each opportunity in a manner consistent with the nature and complexity of the project and in a method appropriate for the industry in which the Load Displacement project is proposed. Scope In general, the LDFS should address the following items listed below. The detailed requirements are in the subsequent section. 1. A baseline energy profile (all fuels using actual data if existing) for the new plant or existing facility before factoring in the proposed Load Displacement project 2. A description of the proposed Load Displacement project including details as to how the proposed Load Displacement project will be integrated into the new plant or existing facility 3. Specifics for all planned energy conservation measures, both electrical and thermal, that will enhance the performance of the proposed Load Displacement project 4. A complete fuel analysis 5. An estimate of plant energy consumption (all fuels) after the proposed Load Displacement project is implemented 6. Capital cost of the base case (if any) and the proposed Load Displacement project 7. Economic impact analysis of the base case and the proposed Load Displacement project 8. A summary of environmental considerations 9. A summary of preliminary interconnection considerations 10. Key project engineering/management documents including a. General arrangements and integration details b. Capital cost estimate, +/- 30% accuracy c. Energy savings estimate, +/- 10% accuracy d. Load displacement estimate, +/- 10% accuracy e. Generation Profile, +/- 10% accuracy, including: i. Gross generation revenue meter at the generator ii. Parasitic load all existing and new electrically powered supporting drives and services necessary to operate the generator iii. Net generation gross generation less parasitic load BCH-QMS-9462-C-085 Revision: 006 Page 1 of 6
f. Mass and energy balances of the base case and the proposed Load Displacement project case g. Preliminary start dates and duration of major activities and milestones including: i. Pre-feasibility design start ii. Customer project approval iii. Start detailed engineering iv. Major equipment purchase v. Construction start vi. Commissioning vii. Commercial Operation Date (COD) h. Project risk analysis and mitigation strategy Some key points to consider: 1. Item 1 above typically defines the base case in terms of production and energy consumption. If it does not, for reasons of planned production increase, process change or some other reason, the base case must be clearly defined and agreed to by all parties (the customer and BC Hydro) so that the total Load Displacement and subsequent incentive payment can be determined 2. Items 2 and 3 above typically define the proposed Load Displacement project. If conservation measures are not part of the project, then item 2 alone defines the proposed Load Displacement project. 3. Conservation measures that enhance the proposed Load Displacement project, both electrical and thermal, can be bundled together with the proposed Load Displacement project. Group all the conservation measures together and treat this part of the LDFS as an Energy Efficiency Feasibility Study (EEFS). See BC Hydro document BCH-QMS-9462-C-001 Rev 6, Guidelines for an Industrial Energy Efficiency Study. Some items in this guideline will not be relevant to every LDFS. The customer should comply substantially with these guidelines and include all material that supports the assumptions and conclusions proposed in the report as well as any information that will facilitate review of the report by Power Smart Engineering. Requirements The LDFS should include the following information. The list is not exhaustive and the customer may add additional information as deemed necessary. As well, the customer may be asked by BC Hydro to provide additional information. 1. Customer Site Profile - document the following a. Site background including i. New plant or existing facility location ii. A brief description of the new plant or existing facility including production processes employed and the products produced BCH-QMS-9462-C-085 Revision: 006 Page 2 of 6
iii. Other relevant information b. Production information i. Historical monthly facility production (actual production data if existing) indicating normal and seasonal/periodic variations ii. Normal operating hours iii. Maintenance hours including normal routine maintenance and annual maintenance shutdown c. Existing self-generation profile (if applicable) i. Generation assets ii. Generator nameplate capacity iii. Utilized capacity (MW s and GWh/yr) iv. System heat rate, (Btu/kWh) LHV on a net power basis d. Energy use history including current year and comparison with relevant previous years i. Customer Baseline Load (CBL) and, if applicable, Generator Baseline Load (GBL) ii. Quantities and costs for electrical demand and consumption iii. Biomass and fossil fuel consumption iv. Indicate whether facility electricity consumption is a function of time, season, production or other variables e. Review and summary of relevant previous studies i. Customer site investigations ii. Energy audits iii. End use assessments iv. Energy studies 2. Load Displacement Opportunity a. Proposed Load Displacement project for site i. Description of load displacement technology, i.e. simple cycle, combined cycle, combined heat and power, etc. ii. Intended fuel supply, i.e. electrical, biofuel, fossil fuels, other iii. Optimum sizing considerations and integration plan for load displacement technology at the proposed LD project site b. Energy efficiency opportunities proposed to improve overall LD performance i. Electrical energy saving measures proposed ii. Thermal energy saving measures proposed iii. Impact of each measure on site LD performance c. Baseline and future energy consumption for new facility or existing facility i. Establish the base case energy consumption (all fuels) before the proposed Load Displacement project is implemented BCH-QMS-9462-C-085 Revision: 006 Page 3 of 6
ii. Estimated energy consumption and use profile for all fuels (electricity, biomass and fossils fuels, etc.) after the proposed LD project is implemented iii. Prepare a detailed mass and energy balance for the base case and for the proposed LD project case including proposed energy conservation and thermal efficiency measures iv. Calculate the energy savings expected for the proposed LD project including: 1. Gross generation 2. Total parasitic load including all electrically driven supporting drives and services needed to operate the generator 3. Net generation 3. Fuel Plan a. Prepare an all fuels plan for both the base case operation and the proposed LD project case. See BC Hydro document BCH-QMS-9462-C-087 Rev 004, Appendix A Integrated Customer Solutions (ICS) Load Displacement (LD) Fuel Plan. 4. Project financial analysis a. Capital cost of base case and proposed LD project case b. Economic impact analysis of base case and proposed LD project case c. Provide a list and description of all grants and subsidies the customer has applied for (or received) to contribute funding to this project d. Project risk analysis and mitigation strategy 5. Environmental considerations including GHG offsets and air permitting requirements 6. Preliminary electrical interconnection considerations a. Provide information on preliminary discussions with BCH Interconnections group b. Preliminary design of control systems and switchgear to integrate proposed LD project into the customer s own power distribution system c. Preliminary information including whether or not there is an inverter, the feeder the project will connect to (latitude/longitude or service address), and maximum injected capacity d. Single line drawing e. Metering requirements including: i. Metering of the gross generator output (typically by BC Hydro) ii. Metering of the parasitic load consumption (all existing and new electrically driven support drives and services needed to operate the generator) 1. Permanent metering of parasitic load, tied into the facility DCS system capable of recording and archiving power and energy data over time f. Interconnection Studies BCH-QMS-9462-C-085 Revision: 006 Page 4 of 6
i. Work required to complete the information required in the Generator Interconnection Data Forms can be added to the LDFS costs as study costs eligible for BC Hydro study funding. ii. For projects that will connect to the distribution system, it is recommended that the customer has a Screening Study completed by Distribution Generator Interconnections. Once completed, the Screening Study will be submitted with the completed LDFS. The cost of the Screening Study can be added to the LDFS costs as study costs eligible for BC Hydro study funding. iii. For more information on distribution interconnection studies see Distribution Generator Interconnections iv. For more information on transmission interconnection studies see Transmission Generator Interconnections 7. Engineering Deliverables a. Project description b. Project scope of work c. Project risk analysis d. Project financial analysis e. General arrangement drawings f. Interconnection details and key tie-ins g. Process and control drawings h. Mass and energy balances i. Energy savings estimate, +/- 10% accuracy j. Load displacement estimate, +/- 10% accuracy k. Generation Profile, +/- 10% accuracy i. Gross electricity generation ii. Parasitic electricity requirements iii. Net electricity generation l. Capital cost estimates to +/- 30% accuracy i. Generator, supporting equipment and associated infrastructure ii. Applicable incremental cost 1. New facility total project cost 2. Existing facility modifications and tie-ins required to integrate generator and supporting equipment iii. All required electrical power metering 1. Permanent metering of parasitic load, tied into the facility DCS system capable of recording and archiving power and energy data over time m. Project Schedule BCH-QMS-9462-C-085 Revision: 006 Page 5 of 6
Power Smart Engineering Review As part of BC Hydro s review of the proposed project, a member of the Power Smart Engineering (PSE) team will review the LDFS. This review will consider the reasonableness of the overall proposal including the underlying assumptions, methodology, results and recommendations consistent with sound engineering judgement and similar project experience. PSE will not analyse the LDFS in sufficient detail to verify every aspect of it. If the PSE review uncovers anything of significant concern, the customer will have a reasonable opportunity to respond and revise the LDFS, if appropriate. The PSE review is for BC Hydro s use only and the customer must not, under any circumstances, rely on the PSE review for any purposes whatsoever. Even though the LDFS may have been reviewed by the PSE team, the customer will retain full responsibility for the accuracy of the LDFS and any information it. BCH-QMS-9462-C-085 Revision: 006 Page 6 of 6
Appendix A Integrated Customer Solutions (ICS) Load Displacement (LD) Fuel Plan Purpose The customer assumes all fuel supply and price risk associated with its project. As part of the Load Displacement Feasibility Study and Proposal, the customer must submit a fuel plan for BC Hydro analysis. The primary purpose of the fuel analysis is to assess the eligibility, technical viability and deliverability risk of the proposed project and energy volumes. Eligibility refers to whether the proposed fuel meets clean or renewable resource and/or a demand-side measure definitions in the Clean Energy Act, as well as whether the project still meets BC Hydro cost effectiveness requirements when fuel costs are included in the total project cost. Technical viability refers to whether the fuel type and quality will allow for the project to generate at the output levels proposed by the customer. Deliverability risk measures to what degree the fuel is secure enough to provide the amount of generation contracted for over the duration of the contract. The fuel plan must demonstrate the customer has secure sources of fuel with assurances of continuous supply, availability, transport and storage. Requirements The Fuel Plan consists of five areas of consideration as described below. The list is not exhaustive. The customer may add additional information as the customer deems necessary and BC Hydro may request additional information. 1. Fuel and supporting fuel systems a) Fuel Analysis i. Describe each fuel type (i.e. primary, secondary etc.) for the base case operation and the proposed Load Displacement project including 1. Fuel type (i.e. biomass, natural gas, hydrogen gas, heat, oil, coal, etc.) 2. Percent of total requirement 3. Total requirement per annum (GJ/a) ii. Fuel firing combinations iii. For each fuel type detail 1. Source(s) 2. Energy content per customary unit mass (i.e. kj/kg) 3. Moisture content where applicable (i.e. %BD or %MC) 4. Contaminants where applicable 5. Metric tonne equivalent carbon discharge per MWh 6. Total carbon discharge per year (tonnes/a) 7. Firing efficiency with respect to heat rate, LHV basis 8. Net thermal output (i.e. GJ/a) 9. Ultimate fuel analysis b) Fuel delivery systems i. Fuel transport from source to proposed Load Displacement project site BCH-QMS-9462-C-087 Revision: 004 Page 1 of 2 BCH-QMS-9462-C-087-Rev004 Appendix A LD Fuel Plan. The data and information provided in this document was compiled solely for BC
Appendix A Integrated Customer Solutions (ICS) Load Displacement (LD) Fuel Plan ii. Fuel receiving at proposed Load Displacement project site iii. Fuel processing on proposed Load Displacement project site (i.e. chipping, dewatering, drying, classification etc.) iv. On-site and local storage and reclaim 2. Environmental considerations a) Demonstrate ownership / responsibility / competency of all environmental attributes related to and part of this project b) Indicate which fuels qualify as a clean or renewable resource under the Clean Energy Act 1 c) If the project is to employ an existing generator using fuel that does not qualify as a clean or renewable resource, provide a verification plan demonstrating that incremental energy delivered is energy from a clean or renewable resource d) Discuss details of handling and disposal of all emissions and waste related to each type of fuel 3. Fuel Supply Risk Analysis and mitigation a) Detail the fuel procurement strategy including i. Self-supplied ii. Third party supplied iii. Alternative suppliers b) Indicate potential fuel supply issues including i. Fuel supply shortages ii. Fuel supply interruptions c) Demonstrate contingency plans including i. Alternative fuel supplies ii. Alternative fuel types iii. Continuity insurance 4. Detail infrastructure and capital costs associated with proposed Load Displacement project fuel plan, including a) Supply infrastructure b) Storage infrastructure c/w capacity c) Fuel treatment facilities d) Federal and Provincial Safety compliance 1 As defined in the Clean Energy Act, clean or renewable resource means biomass, biogas, geothermal heat, hydro, solar, ocean, wind or any other prescribed resource BCH-QMS-9462-C-087 Revision: 004 Page 2 of 2 BCH-QMS-9462-C-087-Rev004 Appendix A LD Fuel Plan. The data and information provided in this document was compiled solely for BC