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At least 19 records

Financing Federal Microgrids [Slides]

A microgrid can enhance a site’s electrical power system during normal operations, as well as provide reliable backup power to critical loads when electric utility power is interrupted. When components of a microgrid (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs, implementation by one of several privately financed federal procurement mechanisms is possible. However, it is typically difficult to achieve enough savings and avoided costs to cover the design, equipment, and installation of certain microgrid components that are required to integrate the system. This presentation explores procurement options and agreements that may be useful to federal agencies interested in implementing microgrids at their sites. This information will be most useful to agencies when they are exploring electric energy system resilience options and/or considering different procurement options to meet their needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

American Made Energy Infrastructure - Evolution of Federal Incentives and Requirements

This presentation, "Evolution of Federal Incentives and Requirements," explores the development and impact of federal cybersecurity regulations, tax credits, and domestic content requirements on the energy sector. It covers key legislation such as the ARRA of 2009, IIJA, and IRA, and their implications for grid modernization, manufacturing, and deployment of energy technologies. The presentation also addresses definitions and restrictions related to Foreign Entities of Concern (FEOC) and their impact on federal procurement. Additionally, it introduces the DOE's cybersecurity framework for energy supply chains and practical actions for compliance planning.

25 - ENERGY STORAGE↗

Selling to NASA

Prospective contractors are acquainted with the organizational structure of NASA, and the major technical program offices and selected staff offices at the Headquarters level are briefly described. The basic procedures for Federal procurement are covered. A primer is presented on how to market to NASA. While the information is specific to NASA, many of the principles are applicable to other agencies as well. Some of the major programs are introduced which are available to small and disadvantaged businesses. The major research programs and fields of interest at individual NASA centers are summarized.

Source record↗

Buying Low Carbon Food Services

This handout summarizes useful resources and links from the Take Five: Buying Low Carbon Food Services training, a short training video that helps federal procurement stakeholders purchase more energy efficient food service appliances.

Venkatraman, Meenakshi↗

Microgrid Procurement Checklist Training: Part 1

Learn how to navigate the Microgrid Procurement Checklist, a key resource for federal agencies developing microgrid projects. This first session will provide a step-by-step walkthrough of the checklist, helping participants understand its structure, key tasks, and how to apply it in project planning.

25 ENERGY STORAGE↗

Panel Session 88: US DOE EM Tier 1 Procurement Activities and Strategy Update

This Panel was open to all WM participants, including exhibitors and was held in the Panel Zone of the Exhibit Hall attended by over 70 participants. The panel was complimentary to Session 73 - DOE EM End State Contracting. This panel placed focus on DOE EM and NNSA procurement activities including procurement strategies and planned activities for Tier 1 contracts. DOE federal and procurement officials provided the participants with DOE rationale and insights for recent and upcoming procurement strategy changes. Representatives for the Energy Community Alliance and the Energy, Technology and Environmental Business Association provided perspective on the DoE's procurement process improvements. Presentations proposed include: 1 - DOE-EM Tier 1 Procurement Activities and Strategy Update (Tamara Miles, US DOE (USA)); 2 - ECA - SRSCRO Perspective on US DOE Tier 1 Procurement Activities and Strategy Update (Rick McLeod, Savannah River Site Community Reuse Organization - SRSCRO (USA)); 3 - Tier 1 Procurement Activities (Greg Gonzales, US DOE NNSA (USA))

12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE W↗

Procurement Options for Low Temperature Geothermal Technologies at Federal Facilities

Federal agencies are moving towards more efficient and resilient facilities by increasingly implementing energy projects in an effort to meet federally mandated goals, agency needs, and administration priorities. Low temperature geothermal technologies, which include geothermal heat pumps (GHP) and district heating systems, can contribute to meeting these goals. These technologies provide facilities with heating and cooling while reducing facility energy use and improving resilience. However, in order to implement these solutions, federal facilities must identify and execute a strategy for the procurement of these technologies. Federal facilities have successfully completed energy efficiency projects using a variety of procurement options. The purpose of this document is to provide federal agencies with a comprehensive overview of the procurement options available for low temperature geothermal technologies and other energy efficiency projects. The procurement options discussed include third-party financing mechanisms such as energy saving performance contracts (ESPCs), ESPC energy sales agreements (ESPC ESAs), and utility energy service contracts (UESCs), as well as dedicated funds in the form of federal grants and appropriated funds.

15 GEOTHERMAL ENERGY↗

Changing Institutional Procurement Behavior to Achieve Energy Savings

Although federal policies regarding energy-efficient product procurement (EEPP) are long-standing and well-established, federal buyers do not typically request energy-efficient products when making purchases. This is a large missed opportunity: full compliance could save the U.S. federal government roughly $500 million in energy cost annually. In 2016, the U.S. Department of Energy’s Federal Energy Management Program (FEMP) began a new set of program activities to increase federal compliance with these procurement requirements. Program interventions included increased communication with contracting officers during the solicitation process; development of enhanced, targeted training; and collection and dissemination of procurement best practices across the federal sector. We have collected and analyzed ~2,500 solicitations from over 40 different federal agencies to evaluate the influence of these interventions. Compared to pre-intervention years (FY15 and FY11), annual compliance rates for FY16 and FY17 increased by about 10%. This paper provides an overview of the data collection process, analysis framework, intervention method, and results of our analysis. We discuss strategies to increase compliance rates by examining institutional factors that drive procurement behavior. By combining data collection with adjustment to program implementation, we have created an iterative process that is having a demonstrable effect in improving the impact of a long-running program.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Reported Energy and Cost Savings from the DOE ESPC IDIQ Program: FY 2024

Energy Savings Performance Contracts (ESPCs)are a contractual mechanism that allow a federal agency to procure energy savings and facility improvements without upfront capital costs to reduce costs and resiliency. ESPCs are covered under FAR Part 23.2, and 42 USC § 8287. Section 8287(a)(2)(A) of Title 42 of the U.S. Code requires that each energy savings performance contract (ESPC) undergo an annual energy audit, resulting in a separate audit report for every project. The objective of the present report is to compile and analyze all annual ESPC audit reports issued between October 1, 2023, and September 30, 2024, for projects awarded under Generations 1, 2, and 3 of DOE’s ESPC IDIQ contracts. During this period, 205 measurement and verification (M&V) reports were produced for 200 projects; the total number of reports exceeds the number of projects because some projects generated more than one report(for example, a few projects measure savings twice per year and produce two audit reports annually, each covering a different six-month period). By aggregating the results from these individual audits, the report determines the portfolio-wide realization rate of energy and cost savings for all active ESPC projects awarded under DOE’s IDIQ program. For all 205audit reports, sufficient information was available to compare project-level estimated, reported, and guaranteed cost savings. Reported cost savings accounted for ESCO verified savings per each project’s M&V plan. The total reported cost savings for the period addressed were $\$$647.8million,compared with the total guaranteed cost savings of $\$$601.6million. On average across the reported projects: •ESPC contractors guaranteed 92.8% of the estimated cost savings• projects reported achieving 100.0% of the estimated cost savings• projects reported achieving 107.7% of the guaranteed cost savings. The M&V performed for the period indicated adjustments for government operations and maintenance impacts to savings amount to$\$$43.9millionandcould be restored with the original operational parameters for impacted projects. Accounting for this potential cost savings impact, these projects still realized 100.4% of the guaranteed cost savings. The information on estimated and reported energy savings was collected and compared for all 205of the reports examined. Based on site energy, estimated savings totaled 14.88million MMBtu, and reported savings were 15.33million MMBtu; 3.1% greater than the estimated energy savings. All of the reports examined contained sufficient information to calculate source energy savings. Based on site-adjusted source energy, total estimated energy savings were 20.90 million MMBtu, and reported savings were 21.22million MMBtu, 101.5% of the estimated energy savings. For water savings, the estimated savings were 11,539,055 kGal and the reported savings were 13,315,930 kGal. This means 1,776,875 kGal more water was saved than estimated, which is about 15% higher than the estimate. These results indicate that, overall, the reported energy savings slightly exceeded the estimated values, while estimated water savings significantly exceeded estimated values, suggesting that the projects achieved greater cost savings than originally projected. The total annual expense for the ESCOs to perform annual M&V audits and reporting was $\$$10.02million. Through this effort, $\$$647.8 million in annual cost savings was verified. The M&V results indicated that $\$$43.9 million of these verified savings reflected adjustments due to government operations A-6and maintenance impacts, which could be restored under the original operational parameters for the affected projects. These findings show the value of M&V that only costs 1.7%of the guaranteed cost savings to ensure guarantees are met.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Reported Energy and Cost Savings from the DOE ESPC IDIQ Program: FY 2024

Energy Savings Performance Contracts (ESPCs) are a contractual mechanism that allow a federal agency to procure energy savings and facility improvements without upfront capital costs to reduce costs and enhance mission resiliency. ESPCs are covered under FAR Part 23.2, and 42 USC § 8287. Section 8287(a)(2)(A) of Title 42 of the U.S. Code requires that each energy savings performance contract (ESPC) undergo an annual energy audit, resulting in a separate audit report for every project. The objective of the present report is to compile and analyze all annual ESPC audit reports issued between October 1, 2023, and September 30, 2024, for projects awarded under Generations 1, 2, and 3 of DOE’s ESPC IDIQ contracts. During this period, 205 measurement and verification (M&V) reports were produced for 200 projects; the total number of reports exceeds the number of projects because some projects generated more than one report (for example, a few projects measure savings twice per year and produce two audit reports annually, each covering a different six-month period). By aggregating the results from these individual audits, the report determines the portfolio-wide realization rate of energy and cost savings for all active ESPC projects awarded under DOE’s IDIQ program.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Analysis of Supply Chain Challenges in the U.S. Solar Industry: Focus on Build America, Buy America Act and Inverter Supply Issues

The United States (U.S.) solar industry has been undergoing significant transformation, driven largely by meeting U.S. climate goals while simultaneously maintaining national security. At the forefront of this movement is the Inflation Reduction Act (IRA) and the Build America, Buy America (BABA) Act. The IRA has driven investment in clean energy generation deployments while the BABA Act, enacted under Division G, Title IX of the Infrastructure Investment and Jobs Act (IIJA) establishes domestic content procurement preference for all federal financial assistance obligated for infrastructure projects. While these pieces of legislation aim to reduce reliance on foreign-made solar components and increase domestic production, the sector continues to face notable supply chain challenges. These are particularly pronounced with inverters, a critical component in solar photovoltaic (PV) systems. This report explores the current state of these supply chain challenges, with a specific focus on the impact of the BABA requirements and the associated complexities in inverter manufacturing and supply.

14 SOLAR ENERGY↗

Financing Microgrids in the Federal Sector

Recent high-impact events such as hurricanes and wildfires highlight the need for energy system resilience. One potential impact of these events is the loss of utility grid power to federal sites, negatively affecting the ability to carry out their missions. Depending on the need to sustain critical functions, it may be important to continue operations during an outage of the electric grid, or at least have power restored quickly after the event. One approach to addressing this need is through a microgrid. Microgrids can provide a more reliable solution than the traditional approach of using a backup generator at individual buildings. A microgrid can enhance a site’s electrical power system during normal operations, as well as provide reliable backup power to critical loads when electric utility power is interrupted. Many times, certain components of a microgrid (and potentially the entire system) can be justified economically and paid for out of energy savings or avoided costs. In cases where savings can cover the project costs, one of several privately financed procurement mechanisms may be used to implement the project. Procurement options available to all federal agencies include utility energy services contracts (UESC), energy savings performance contracts (ESPC), and utility services contracts (USC); other mechanisms such as a power purchase agreement (PPA), enhanced use lease (EUL), and utility privatization (UP) may also be useful to agencies that have the authority to use them. Implementing a microgrid in a comprehensive effort that also includes energy efficiency can provide an important savings component, while reducing power requirements for critical loads, thus reducing the cost of the microgrid and associated distributed energy resources (DER). However, it can be difficult to achieve enough savings and avoided costs to cover the entire microgrid system, so leveraging these avoided costs in combination with appropriated funds may be necessary to implement the full project. When a site is deciding if a microgrid is the best solution, activities early in the process include identifying critical loads and existing DERs, conversations with the local electric utility, and implementation options that work best for the agency and site. This paper explores procurement options and agreements that may be useful to federal agencies interested in implementing microgrids at their sites. Microgrid complexities, implementation considerations, and suggestions to get started are also discussed. This information will be most useful to agencies when they are exploring electric energy system resilience options and/or considering different procurement options to meet their needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Offshore Wind Market Report: 2023 Edition

The Offshore Wind Market Report: 2023 Edition provides detailed information on the U.S. and global offshore wind energy industries to inform policymakers, researchers, and analysts about technology, economic, and market trends. The scope of the report covers the status of over 293 global operating offshore wind energy projects as well as the broader global pipeline of projects in various stages of development through December 31, 2022. To provide up-to-date information and discussion on this emerging industry in the United States, this report tracks the significant U.S. domestic industry progress and events from January 1, 2022, through May 31, 2023. The U.S. offshore wind energy project development pipeline has reached a potential generating capacity of over 52 gigawatts, and the industry has seen strong support from state and federal governments (such as from the Inflation Reduction Act of 2022 and the announced Floating Offshore Wind Shot to reduce the cost of floating wind by 70%). There are contracts for over 17 gigawatts of the electricity from these offshore wind projects and state policies are in place to procure over 42 gigawatts by 2040. Although some projects are facing economic headwinds due to rising costs and higher interest rates (corresponding to project cost increases of 11% - 30% in 2022), there has still been significant investment in a domestic supply chain (including manufacturing facilities, new vessels, and upgraded or planned ports). Technologies continue to evolve as offshore wind turbines in the 15-megawatt class advance towards commercial production. Key offshore wind energy market indicators, such as commercial leasing, state energy planning targets, procurement policies, offtake agreements, and federal support for U.S. jobs and supply chain development, point toward sustained market growth when viewed together, but the macroeconomic hurdles facing the first generation of commercial projects could significantly stunt that growth.

17 WIND ENERGY↗

National Mandates Won’t Save Us!: How to Design Energy Efficiency Policies that Address Institutional Barriers to Change

There are many national policies aimed at driving an increase in energy efficiency (EE) implementation. But how effective are they? Over the past 20 years, the U.S. government has established five legal authorities mandating federal agencies to prioritize energy-efficient products when purchasing. As the largest single buyer of energy-consuming products, energy-efficient purchasing across the federal sector would result in huge energy savings and emissions reductions. Despite this, our research has found that only ~55% of federal purchases currently meet existing requirements. If national mandates are not enough to ensure that federal agencies are buying efficient products, what is? To answer this question, we surveyed 161 procurement and sustainability staff from 26 different federal agencies. Findings revealed that several institutional factors (i.e., the roles, rules, and tools within an organization) play a key role in determining how likely federal buyers are to prioritize EE. Ensuring that federal agencies comply with existing EE requirements is foundational to achieving a clean energy future. This will require more than national mandates, but also the design of policies that successfully identify and address the institutional factors that must be changed in order to increase EE implementation. This paper presents an overview of the data collection and analysis methods for our study, as well as key survey findings and the insights they offer for overcoming institutional barriers to compliance with existing EE requirements. We conclude by discussing how these strategies can be broadly applied to improve the design of EE policies in the U.S. and beyond.

Morabito, Molly↗

Utility Green Tariff Programs in the U.S.: Overview and Opportunities for Cost Savings

Federal agencies may want to procure renewable energy from an off-site generator. Green tariffs allow large utility customers in traditionally regulated states to procure renewable energy from their utility through a special tariff for energy from a specific renewable energy project, typically through a long-term contract. Some of these green tariffs provide customers with cost savings. The webinar will explain how these tariffs are structured, how to evaluate cost savings potential and what agencies need to consider when examining this purchasing option.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗