Portland General Electric Request for Information (RFI): Providers of Utility Operable Energy Storage Systems Table of Contents 1 Background Information... 2 1.1 About Portland General Electric... 2 1.2 Statement of Intent... 2 2 Request for Information (RFI) Process... 3 2.1 Purpose and Scope of the RFI... 3 2.2 General RFI Guidelines... 3 2.3 RFI Submittal Schedule... 4 2.4 PGE Contact Information... 4 3 Instructions to Respondents... 5 3.1 RFI Response Format and Content... 5 3.2 Submittal Instructions... 8 4 Review Process... 8 5 Template for References... 10 1
1 Background Information 1.1 About Portland General Electric Portland General Electric has provided electricity to customers in the northern Willamette Valley since 1889. Today, we serve more than 840,000 customers within our 4,000-square mile service area, including 52 Oregon cities. As a vertically integrated power utility, PGE generates electricity from plants it owns, and purchases power on the wholesale market to ensure that its customers are served with reliable, low-cost energy at any given time. PGE operates wholly and jointly owned hydroelectric, natural gas, coal, wind and solar generating plants. PGE also owns and operates a transmission network which, as part of the regional power grid, enables real-time delivery of electricity from where it is generated to where it is needed. As Oregon s population and need for electricity grows, PGE is strategically planning for a sustainable and diversified resource portfolio that includes energy storage. 1.2 Statement of Intent On June 10, 2015 the Oregon Legislature signed House Bill (HB) 2193 into law. The law requires PGE to submit one or more proposals to the commission for developing at least 5 MWh of energy storage by January 1, 2020. A cross-functional team within PGE was soon formed to develop and deliver a diversified portfolio of energy storage resources for compliance with HB 2193 while establishing PGE as a leader in the integration of energy storage. The primary objectives of this cross-functional project team are to 1) procure one or more energy storage systems capable of storing at least 5 MWh of energy, 2) procure additional energy storage systems if economically justified 1 3) learn how to integrate energy storage technology and control systems seamlessly into PGE s operations, and 4) achieve a diverse portfolio of storage resources to enhance PGE s integration of different types of energy storage technologies. A unique feature of energy storage systems is their ability to provide multiple services to the electric system. The capabilities ultimately sought by PGE through energy storage may include, but are not limited to, one or more of the following: Spinning Reserves Non-Spinning Reserves Load Following and Ramping for Renewables Regulating Reserves Wind Forecast Error Correction Frequency Response Contingency Reserves Capacity Resources Energy Shifting (Off-peak to Peak) Infrastructure Deferral Enhanced Customer Services (e.g. Backup Power) Load Sink EIM Participating Resource Economic Dispatch 1 According to HB2193, the total capacity of energy storage systems procured by any one electric company may not exceed one percent of the electric company s peak load for the year 2014. In 2014, PGE s peak load was 3,866 MW. 2
Distribution System Voltage Support & Control Locational Capacity Black Start Capability 2 Request for Information (RFI) Process 2.1 Purpose and Scope of the RFI The purpose of this Request for Information (RFI) is to assist PGE in understanding and evaluating the capabilities of companies that can function as the engineering, procurement, and construction (EPC) primary contractor for energy storage projects. PGE is interested in learning which firms can deliver complete energy storage systems and control platforms that integrate seamlessly with the utility s operations. This could include projects implemented at various parts of the electricity delivery system from generation, to substations, to the customer side of the meter. PGE requests that interested vendor companies provide information on their capabilities and experience in accordance with the instructions provided in Section 2.5 below. PGE is not interested responses from the following: Respondents that can provide only an incomplete energy storage system and have not otherwise identified project partners or technologies that would enable a complete solution. Respondents that are unwilling or unable to provide PGE with operational control of developed energy storage systems. Respondents providing energy storage solutions that are conceptual or unproven. 2.2 General RFI Guidelines PGE reserves the right to make changes to this RFI by issuance of one or more addenda or amendments and to distribute additional clarifying or supporting information. PGE may ask any or all respondents to elaborate or clarify specific points or portions of their submission. Clarification may take the form of written responses to questions or phone calls or in-person meetings for the purpose of discussing the RFI, the responses thereto, or both. It is solely the responsibility of each respondent to ensure that all pertinent and required information is included in its submission. PGE reserves the right to determine at its sole discretion whether a submission is incomplete or non-responsive. Respondents should clearly state all assumptions they make about the meaning or accuracy of information contained in this RFI. Respondents will have an opportunity to ask clarifying questions. If a respondent does not ask questions or clarify any assumptions, PGE will assume that the respondent agrees with and understands the requirements in the RFI. While PGE has endeavored to provide accurate information to responding firms, PGE makes no such warranty or representation of accuracy. 3
Respondent firms are encouraged to provide and release necessary authorizations for PGE to verify any of such respondent firm s previous work, except where it is contractually prohibited from doing so pursuant to customer agreements. This RFI shall not be construed to create an obligation on the part of PGE to enter into any contract, or to serve as a basis for any claim whatsoever for reimbursement of costs for efforts expended by respondent firms. Furthermore, the scope of this RFI may be revised at the option of PGE at any time, or this RFI may be withdrawn or cancelled by PGE at any time. PGE shall not be obligated by any responses or by any statements or representations, whether oral or written, that may be made by the company or its employees, principals or agent. Respondents should note that if PGE has reviewed its response, there is no guarantee that the respondent will be selected to participate in a subsequent RFP issued by PGE. PGE has requested company information for informational gathering purposes only and this RFI is not a formal solicitation. Any exceptions to the terms, conditions, provisions, and requirements herein must be specifically noted and explained by a respondent firm in its response to the RFI. PGE will assume that any response to this RFI expressly accepts all the RFI terms, conditions, provisions and requirements, except as expressly and specifically stated by a respondent firm in its response to the RFI. Participating respondent firms agree to keep confidential all information provided by PGE in connection with this RFI. Please note that PGE will not reimburse any respondent for the costs or expenses incurred in the preparation or submission of a response to this RFI. 2.3 RFI Submittal Schedule Responses to this RFI and any supporting documentation are to be submitted electronically via the internet as PDF or Excel file attachments to an email to joseph.ross@pgn.com. Please limit email file attachments to <10 MB. Respondents will have an opportunity to ask clarifying questions by submitting them to joseph.ross@pgn.com. The deadline to submit questions via email is 5pm PDT on May 30, 2016. Emailed questions received after this date will not receive a response. PGE will not respond to any questions received in-person, by mail, by fax, or by phone. A summary of all questions submitted by May 30 th and the corresponding answers will be submitted via email to all potential respondents June 3, 2016. RFI Milestones Completion Date* RFI issued May 23 rd Last day to submit clarification questions May 30 th PGE publishes answers to clarifying questions June 3 rd RFI response submission deadline June 10 th * PGE reserves the right to change any of the above dates. 2.4 PGE Contact Information 4
Please direct all questions and inquiries about this RFI to Joe Ross, PGE Sourcing and Contracting, 503-464-8966, joseph.ross@pgn.com. 3 Instructions to Respondents Respondents are instructed to prepare their responses to this RFI in accordance with the instructions outlined below. 3.1 RFI Response Format and Content The content of the written RFI response should be organized as follows: Response Section Section Title n/a Cover Letter n/a Table of Contents 1 Executive Summary Professional Background and 2 Company Financials Energy Storage Project 3 Development Experience 4 Technology Preferences 5 Performance Guarantees 6 References Appendix A Glossary of Terms (if needed) Completed RFI Response Form Appendix B (attached as Excel spreadsheet) In addition to any written response, the MS Excel-formatted RFI Response Form attached to this RFI ( PGE Energy Storage RFI Response Form FINAL.xlsx ) should also be completed and included as part of the overall response. 3.1.1 Cover Letter and Table of Contents The cover letter shall include the following: The legal name and address of the respondent; The name, title and telephone number of the individual authorized to submit information; and A statement that the respondent has read, understands, and agrees to all provisions of the RFI and acknowledges that this RFI is for informational purposes only and does not constitute a formal solicitation. 3.1.2 Executive Summary This section should include a brief summary (1-2 pages) of the respondent s capabilities and experience as described in the remainder of the submission. 5
3.1.3 Professional Background and Company Financials This section is intended for the respondents to provide a description of their company, project team leadership, financial position and services offered. In addition, respondents should provide the information listed below and complete all relevant sections of the RFI Response Form. A list of individuals on the respondent s team who have, in a managerial capacity, been responsible for the planning, development and construction of a grid-connected electrical facility in PGE s service territory or elsewhere in the Western Interconnection. Please include resumes if appropriate. Financial statements for the previous three fiscal years; Most recent annual report; List of any current non-performing or loan defaults in the past five years; Information about instances in which any member of the development team has ever filed bankruptcy or had projects that have been lost to foreclosure; Evidence that respondent is a creditworthy company registered to conduct business in Oregon and is in good standing; List of three (3) contacts that have provided the respondent with debt or equity financing of at least the magnitude likely to be required for a utility-scale storage project; A list of all lawsuits, regulatory proceedings, or arbitration in which the respondent or its affiliates or predecessors have been or are engaged in that could affect respondent s performance in the development of an energy storage project. 3.1.4 Energy Storage Project Development Experience This section is intended for the respondent to provide a description of experience as an EPC contractor, or other enabling role, in the development of energy storage and other electricity related projects. In addition, respondents should provide the information listed below and complete all relevant sections of the RFI Response Form. Description of the respondent s energy storage project experience. o Please identify individual team members who have, in a managerial capacity, been responsible for the planning, development and construction of an energy storage project. o Please emphasize any storage solutions implemented for other investor-owned utilities, large municipals, electric co-ops, or other similar entities. Description of specific energy storage technologies and/or solutions implemented by the respondent (multiple can be listed). Partnerships secured or needed for future project execution (e.g. subcontractors, community groups, etc.) Any other relevant information that you deem appropriate and noteworthy that supports your company s ability to deliver a world class energy storage system and controls platform. 3.1.5 Technology Preferences In accordance with HB 2193, PGE intends to consider different types of energy storage. In this section, each respondent should briefly describe the attributes of its preferred energy storage technology. This description should explain any technology-specific beneficial aspects such as: Respondent s experience with the technology Levelized cost for utility applications 6
Durability Relative efficiency Suitability for specific use cases Potential sizes and locations of storage systems If a respondent does not have a preferred energy storage technology, it may also declare that it is agnostic to the specific storage technology to be implemented. In addition to the storage medium, respondents should describe the attributes of any preferred power conversion system (PCS) that is likely to be implemented or recommended in the full proposal. This description should include any advantages, including: Respondent s experience with the technology Cost for utility applications Durability Relative efficiency Suitability for specific use cases. If a respondent does not have a preferred PCS, it may also declare that it is agnostic to the PCS to be implemented. Statements made in this section will not be binding in any future proposal. 3.1.6 Performance Guarantees PGE recognizes that the energy storage industry has evolved rapidly in recent years and now includes a wide spectrum of storage solution providers with varying experience. Some of these providers are longestablished firms with robust project experience and the ability to offer a complete storage solution. Meanwhile, some providers are more recently established firms that have promising technologies but cannot yet offer a complete solution or are too new to have developed a long track record. PGE is interested in hearing from firms across this spectrum. However, in selecting a storage provider PGE ultimately must have assurance that a proposed storage project will be delivered to meet predefined specifications. Thus, PGE may consider firms that lack full solutions or significant project development experience independently, but only if these firms are able to achieve PGE s required specifications through alternative means and/or partnerships. In this section, each respondent should describe in detail how it could guarantee to PGE that a proposed storage project would be delivered and would meet PGE s performance specifications over the life of the asset. Additionally, each respondent should indicate what recourse PGE would have (e.g. compensation for monetary loss; alternative means of project delivery) in the event a proposed project is not delivered or does not operate according to specifications. This guarantee may come in the form of a performance bond (i.e. surety bond). Additionally, if a firm is only capable of providing a partial storage solution, it should describe in detail how it plans to secure the ability to deliver a complete storage solution for a project proposal. 3.1.7 References 7
Respondents should provide at least three (3) client references that can attest to the respondent s qualifications in the table format provided in Section 4 below. Please list the most recent references first. Three (3) client references must also be provided for any subcontractors identified in the Respondent s response that are providing more than 25% of the work. Duplicate and attach additional reference pages as necessary. 3.2 Submittal Instructions All responses must be submitted via email to the following address: joseph.ross@pgn.com. Submissions must be received by 5pm PDT, June 10, 2016 to be considered. Please format the email subject line as follows: Energy Storage RFI Vendor Submission [Company Name] Responses delivered by hand or fax, regular mail, or any other method will not be accepted. PGE will not be responsible for late, lost, illegible or misdirected submissions. 4 Review Process PGE will review responses to this RFI. This review will be coordinated through PGE s Resource Strategy Department and other company departments as necessary. PGE may, at its discretion, contact respondents with additional questions or information requests. Additional action by PGE related to this RFI is solely at the company s discretion, and as such, the company has no obligation whatsoever to address questions, comments, or information requests related to this RFI after receipt of respondents responses. Submissions that do not address all of the components outlined in this document may not be reviewed. Written RFI Responses should be clear and succinct and demonstrate an understanding of capabilities and performance requirements that PGE is seeking. PGE will review each complete response, as well as other information, and consider how well the respondent has demonstrated its ability to deliver an energy storage project. This review process is designed to be fair and equitable, with the objective of ultimately selecting a vendor and solution(s) that provides the greatest overall value to PGE and its customers. To help guide PGE s review, the company has developed a summary list of the key attributes it is seeking to understand about prospective energy storage providers (see below). Key Information Sought from Prospective Energy Storage Providers Organization and Personnel: Strength of key personnel Qualifications of management personnel Qualifications of technical personnel Qualifications of construction/site personnel Qualifications of subcontractors Company Financial Viability: Solvency and financial viability Past financial performance Mandatory insurance policies/levels Relevant licenses 8
Professional accreditations or registrations Experience and Technical Competence: Company-wide experience and capability Local experience and capability Experience with similar projects Record of satisfactory performance Recent project management contracts of similar scope, scale, and complexity Demonstration of project integration with utility control systems and/or scalability of controls Preferred Storage Technology: Suitability of technology to use case Track record of performance Safety considerations End of life recycling Operational characteristics System installed costs Performance Guarantees: Ability to guarantee delivery of energy storage within project deadlines and budgets Ability to meet performance specifications for the operational life of the asset Ability to secure necessary project partners and technology providers References: Relevance of completed references Demonstration of project performance Proven success in meeting client goals 9
5 Template for References REFERENCE 1 Name of Company Street Address City State Zip Contact Person Dates of Service Value or Cost of Service Brief Description of Services Provided Telephone Number Fax Number Email Address REFERENCE 2 Name of Company Street Address City State Zip Contact Person Dates of Service Value or Cost of Service Brief Description of Services Provided Telephone Number Fax Number Email Address REFERENCE 3 Name of Company Street Address City State Zip Contact Person Dates of Service Value or Cost of Service Brief Description of Services Provided Telephone Number Fax Number Email Address 10