Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Power Purchase and Grid Connection Procedures Aidan Foss ANF Energy Solutions Inc. Building Your Biogas System Workshop 10 th March 2009

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection ANF Energy Solutions DG grid connection specialists No project ownership Current projects Biogas21 Landfill Gas2 Wind25 PV5 Small Hydro3 River Turbine1 Increasing involved in research due to new connection issues

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection The Grid Connection HV FUSE INTER-TIE CIRCUIT-BREAKER GENERATOR CIRCUIT-BREAKER TO DIGESTER & POWERHOUSE LOADS INTER-TIE TRANSFORMER MREVENUE METER BIOGAS GENERATOR UTILITY FEEDER HV DISCONNECT LV DISCONNECT LV FUSE MREVENUE METER HV FUSE GENERATOR CIRCUIT-BREAKER TO OTHER LOADS INTER-TIE TRANSFORMER MREVENUE METER BIOGAS GENERATOR LV DISCONNECT POWER EXPORTERNET METERING LV FUSE HV EQUIPMENT OWNED BY FARMER

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Getting Connected Power Purchase Options Grid Access Grid Connection Costs Grid Connection Process

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Power Purchase Options: Embedded Retail Generator – market price Net Metering – to 500kW RESOP – Renewable Energy incentive CESOP – Clean Energy incentive - ?? Green Energy Act – will replace RESOP

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Renewable Energy Standard Offer Program (RESOP) Launched in Nov c/kWh c/kWh for peak 20 year contract with OPA Up to 10MW, 50kV Requires a CIA Green, Yellow & Orange zones Driver for flood of projects Suspended in May 2008 Biogas OK to 5MW Will be superseded by Green Energy Act

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Grid Access Rights No guaranteed access rights Distribution Code has limited capacity Until 12 February 2009, Distribution Code was ‘First-come First-served’ for all generation in 10kW-10MW range

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Hydro One Queue Substation Capacity = 20MW Queue PositionProject 1111 (10 MW) 2222 (10 MW) CIA Pending333 (10 MW) CIA Pending444 (500 kW) Capacity limits due to feeder, switchgear and transformers Speculative projects ahead in the queue could delay your application by 2-3 years per project

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Hydro One Queue Analysis Project SizeApplications <500kW39 501kW MW MW971 Full Substations117 of 151 From Hydro One queue 31-Oct-08 Over 80% in 9-10 MW range Blockages started in windy areas – Great Lakes Blanket applications in Eastern Ontario Aug/Sept 07 Small biogas being shut out from many agricultural areas

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Wind & Farm Biogas Wind & PVFarm Biogas Typically 9-10MWGenerally <500kW Multiple applications financed by large corporations Individual applications financed by farmers Flexible on locationTied to farms 30-35% capacity factor70-100% capacity factor Competition between generatorsCo-operation between farmers Grid access is first step - companies forced to speculate No speculation, but forced to rapidly submit Form Bs Removes opportunity for small biogas No significant impact on wind farm development

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Distribution Code Modification 12 th February 2009 Amendment Up to 250kW: Queue exempt on feeders below 15kV Up to 500kW: Queue exempt on feeders above 15kV

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Grid Connection Costs All costs up-front – unlike load customer Distribution Network designed for load customers Deep Entry – Watch out for $$$: –Protection upgrades –Anti-islanding protection –Recloser replacement –Voltage regulators

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection The Single-phase Hydraulic Recloser Extensively deployed across Ontario Restores load customers in 1-2 seconds Simple, reliable Can be a big problem for generation

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Grid Connection Process 1.Initial Feasibility Assessment 2.Connection Impact Assessment –Gives queue position –12 months to CCRA 3.Connection Cost Estimate 4.Connection Cost Recovery Agreement 5.Connection Agreement

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Grid Connection Process Distribution Code timescales not met – Hydro One swamped Generator responsibility for connection design, equipment procurement and protection design No simplified process for small generation

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Terryland Farm 180kW Biogas Form A submitted Sept 2006 CIA issued May 2007 Commissioned August 2007 Major delay due to Anti- islanding Protection

Biogas Workshop 10 th March 2009 ANF Energy Solutions Inc Power Purchase & Connection Fepro Farms 499kW Biogas July 2007 – 1 st Form B and CIA Highlighted several areas of unclear connection policy Pilot for new Anti- islanding protection strategy Scheduled for March 2009