Net Metering and Embedded Generation

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Net Metering and Embedded Generation
NB Climate Action Change Hub Advisory Committee
Meeting October 1, 2008 Saint John, NB Linda
Berthelot
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Net Metering and Embedded Generation Programs

• Background
• Net Metering Policy
• How Net Metering Works
• Summary of Invoicing
• Embedded Generation Policy
• Purchase Price
• Technical Requirements for Net Metering and
  Embedded Generation

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Background

• Electricity from Renewable Resources Regulation
  Electricity Act also known as Renewable Portfolio
  Standard (RPS) requires an additional 10 of New
  Brunswicks electrical energy must come from
  renewable sources by 2016 (400 MW) this has
  been accelerated to 2010
• NB Power currently has contracts with private
  sector developers for 96 MW of wind energy by
  2008, and another 213 MW by 2009

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Background

• Changes to the Electricity Act also opened doors
  for independent power producers
• In 2005 NB Power introduced Net Metering and
  Embedded Generation policies which allows
  independent power producers to connect their
  generation units to the NB Power distribution
  system (grid)
• Net Metering for renewable generation
• Embedded Generation for renewable and
  non-renewable generation
• Total aggregate capacity for both programs is 21
  MW

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Net Metering Policy

• Net metering projects must use a renewable energy
  source (wind, solar, biomass, biogas, small hydro
  and tidal)
• The maximum size of generator is 100 kilowatts
  (kW)
• The output of the generation unit offsets the
  customers electrical consumption from NB Power
• Excess generation is delivered back to NB Powers
  distribution system and this is measured with a
  bi-directional or net meter

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Net Metering Policy

• The excess kWh are used to further reduce the
  customers monthly consumption from NB Power
  credited at the retail rate
• Customers are billed for the net amount of
  electricity used that is the electricity
  delivered to the customer by NB Power, minus the
  excess that customer sends back to the NB Power
  distribution system
• Excess credits not required within a billing
  period may be carried forward to reduce future
  consumption until March 31 of each year

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Cost to Connect
Since net metering is designed to help customers
offset their own electrical requirements, there
is no need for upgrades to NB Powers facilities
NB Power charges a service call fee of 40.47 to
change the meter
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What is Net Metering?
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Invoicing

• NB Powers meter does not measure electricity
  generated by customers unit it only measures
  kWh delivered to and received from customer
• If readings indicate
• NB Power delivers 800 kWh
• NB Power receives 200 kWh
• Difference or Net 600 kWh
• Charged at prevailing NB Power residential retail
  rate
• HST applied to total supply from NB Power (800
  kWh) and not net total

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Invoicing

• What if we receive more electricity from the
  customer than what we deliver to them?
• Ex
• NB Power delivers - 100 kWh
• NB Power receives - 200 kWh
• Difference - -100 kWh
• Customer is billed for minimum monthly service
  fee of 19.73/21.63 and any rental and
  applicable fees (LPC), etc
• The excess 100 kWh can be carried forward to
  future months to offset electricity from NB Power
• Any credits remaining at the end of March each
  year will be granted to the utility or reduced to
  zero

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Embedded Generation

• NB Powers Embedded Generation policy will pay
  Non Utility Generators for the useful output of
  their generation unit.
• Renewable and non-renewable generation units
• Current policy allows generation unit up to 2 MW
• Output of the generation unit is metered
  separately from the customers on-site
  electricity requirements
• No on-site electricity requirements may be served
  from the generation unit

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Embedded Generation

• The non-utility generator is responsible for any
  and all upgrades resulting from the addition of
  their generation unit to the distribution system
• The upgrades include transformation, metering,
  line extensions, line upgrades, line relocations,
  etc
• NB Power will complete a system impact study
  prior to approval

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Generation Output Purchase Price

• Purchase price is reviewed and determined on a
  case-by-case basis. Factors include
• Contract term
• Type of generation
• Discos avoided energy cost
• Potential capacity deferral value
• Value for environmental attributes

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Technical Requirements for Net Metering and
Embedded Generation

• Installation requirements are as per NB Power
  Technical Specification for Independent Power
  Producers
• Most net metering projects will be installed via
  a certified grid-dependent inverters which
  contain all of the technical and safety
  requirements
• All installations and electrical equipment must
  be approved by a certification organization
  recognized in the Province of NB
• Installations must meet the requirements of NB
  Department Public Safety Technical Inspection
  Services

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Net Metering and Embedded Generation
NB Climate Action Change Hub Advisory Committee
Meeting October 1, 2008 Saint John, NB Linda
Berthelot