RESILIENCY: WHAT IS YOUR 96-HOUR PLAN? - WILLIS MCCULLOUGH, DIRECTOR OF KEY ACCOUNTS, UNISON ENERGY

Resiliency:
What is your 96-Hour Plan?
Willis McCullough, Director of Key Accounts, Unison Energy

The Need for Resiliency

•   California has experienced more power outages than any other state –
    in fact, more than double of any other state in 2018
•   Extreme weather has made utility outages and rolling blackouts the
    new normal for Californians
•   2022 Summer power shortfall may be worse than predicted
•   Aging utility infrastructure contributes to the problem
•   Droughts have impacted hydroelectric production, with 2021 dropping
    48% below the 10-year average – a problem for a state that relies on
    renewable power
    Onsite power solutions, including microgrids, can be part of the
      solution – both for the hospital & freeing up grid capacity

California Tops the List

1. Eaton – Blackout Tracker Annual Report – Figure 1

The Need for Resiliency

1. Power Outage Map – Bloom Energy + PowerOutage

California Energy Commission

  “In an online briefing with reporters, the officials forecast a potential shortfall of
  1,700 megawatts this year, a number that could go as high as 5,000 MW if the
  grid is taxed by multiple challenges that reduce available power while sending
  demand soaring, state officials said during an online briefing with reporters.

  Supply gaps along those lines could leave between 1 million and 4 million people
  without power. Outages will only happen under extreme conditions, officials
  cautioned, and will depend in part on the success of conservation measures.

  In 2025, the state will still have a capacity shortfall of about 1,800 MW, according
  to officials from the California Energy Commission, Public Utilities Commission,
  California Independent System Operator and Newsom's office. They also
  projected annual electricity rate increases of between 4% and 9% between now
  and 2025.”

1. Quote from Podcast with Governor Newsom, the California Energy Commission, California Independent System Operator, and the Public
utilities Commission

Codes: Configurations /
                               Sources (Current)
Current Requirements (2019 CEC/2018 NFPA 99/2016 NFPA 110)
 CEC 517.30 requires (2) Independent Power Sources (normal and emergency)
 CEC 700.10 Wiring from an emergency source shall be kept entirely
  independent of all other wiring and equipment
 CEC 700.12 lists: Batteries, Generators, UPS, Fuel Cells and Unit Batteries as
  sources of Emergency Power (not for hospitals)
 NFPA 99 allows either Generator, Batteries or Fuel Cell as EPS

Codes: Configurations /
                                Sources (Upcoming Changes)
Upcoming Changes (adoption date 1/1/2023) (2022 CEC/2021 NFPA 99/2019
NFPA 110)
No change:
 CEC 517.30 requires (2) Independent Power Sources
 CEC 700.10 Wiring from an emergency source shall be kept entirely
  independent
Changes:
 CEC will allow generators, batteries and fuel cells as EPS’s
 NFPA 99 will allow generator, batteries, fuel cells and Microgrids as EPS’s
 NFPA 99 states that Microgrids can be used as Emergency Power Sources if
 “Designed with sufficient reliability to provide effective facility operation
  consistent with the facilities emergency operations plan.”

Codes: Seismic Certification

OSP’s and seismic bracing of the microgrid components will be required if part of
the EPS. This would apply to applicable “parts and pieces” of the following on-site
power producers and controllers:

 Fuel Cells
 Photovoltaics
 Battery Storage Systems
 CoGen Equipment
 Natural Gas Turbines
 Natural Gas Reciprocating Engines
. . . etc

Codes: Fuel Storage

Onsite fuel requirements:

 OSHPD 1 (Hospitals) – 96 hrs per NFPA 110
 OSHPD 2 (Skilled Nursing Facilities)- 6 hrs if more than 7 beds
 SB 1207 would extend to SNF back-up requirements to 96 hrs
 OSHPD 3 (Clinics) Ambulatory Surgery Clinics - 4 hrs otherwise 90 min
 OSHPD 4 (Correctional Facilities) - 6 hrs if more than 7 beds
 OSHPD 5 (Psychiatric Facilities) - 6 hrs if more than 7 beds

California’s Power Generation

California’s Power Makeup

U.S. Delivered Energy

1. Source: EIA

U.S. Power Consumption

1. Source: EIA

What is a microgrid?

   Microgrids provide hospitals with on-site, resilient power to ensure they have
    the energy they need when the grid goes down
 Typically operates in parallel with the electric utility, but during a power
  outage can isolate itself (“island model”) from the grid & produce its own
  power
 Can power a single or multiple buildings
 Can be comprised of a variety of technologies, including:
   • Solar
   • Energy Storage
   • Combined Heat and Power (CHP)
   • Fuel Cells

Microgrid Technologies

   Solar:
     • Useful for covering peak electricity needs during the day
     • Typically supply about 15% of a hospital’s power
     • Can reduce onsite emissions by at least 10-20%
     • Can be limited by facility space constraints
     • No thermal applications (boiler or other thermal needs)

   Battery Storage:
     • Can help extend solar capacity
     • Overcoming intermittency requires 8x the solar generation and 16x the
         battery supply
     • Batteries rely on non-renewable lithium
     • Cost constraints can prevent a large-scale solution (expensive)

Microgrid Technologies

   Fuel Cells
     • Can run continuously to cover up to 100% of electric load
     • If sized correctly, can provide both electric and thermal
     • Can typically cut a site’s emissions by around 20% with 50% efficiency

   Combined Heat and Power (“CHP”)
     • Can run continuously to cover up to 100% of electric load
     • Can include thermal applications
     • Can use a variety of fuel sources, including natural gas, hydrogen, or
       biogas – and can transition from one fuel source to another
     • Can reduce facility emissions by 10-20%

Microgrid Technologies

                                                                                                   Hospital
                                                                                                   Campus

                                                                                 Wind

Microgrid solution:
  Microgrid maintenance controller            Solar array
  H2/Biofuels                                 Battery Storage
  Convertible CHP units                       Transportation Electrification

System will normally operate in grid parallel but would shift to island mode during grid outages

CHP Thermal Applications

Renewable Fuels
Microgrids can be designed to transition to biogas and hydrogen and these fuels become economically
feasible and available.

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How to pay for it?

   Private financing
   Government / Utility Incentives:
        Self Generation Incentive Program (SGIP)
          • Requires 100% biogas for fuel cells, internal combustion engines,
              microturbines, gas turbines
          • Wind Turbines are eligible
          • Pressure Reduction Turbines are eligible
          • Battery storage (this is a major part of the program)
          • Solar is not eligible

        ZEV Incentives – for installing EV Charging
        Others
   Energy as a Service (EaaS) model: partnering with a third party, using a 15-25
    year Energy Services Agreement (ESA)

Microgrid vs. Diesel Backup

                     Microgrid with ESA Model

               All capital costs are included in ESA

             Natural gas, RNG from underground pipeline

Additional Microgrid Benefits

In addition to providing resilient power, on-site microgrids support hospital ESG
initiatives and allow hospitals to take control of their energy future:
   Microgrids with Combined Heat and Power (CHP) provide reliable, cost-
    effective electricity and can operate in island mode to provide power to the
    hospital when the utility is down
 Using the waste heat to offset boiler usage improves efficiency and reduces
  the carbon footprint of the hospital
 Adding in solar and battery storage where possible, including in parking lots,
  increases renewable energy
 Including EV charging stations for hospital staff and patients supports the
  energy transition
 If using an Energy as a Service model, capital improvements like boiler
  upgrades and VFDs can be included in the long-term cost.

What’s it all means?

While the state has aggressive plans to achieve carbon neutral by 2050, the
current in-state electric generation makeup may pose some challenges:
   Natural gas makes up the lion’s share – and is not going anywhere, regardless
    of best intentions
 Solar and wind, while renewable, come with size and weather constraints:
     • For 1MW of solar, 4 acres of land are needed.
 EV charging stations add up to an additional 30% to a facility’s electric load

Peninsula Regional Medical Center

Salisbury, MD

Client goals: Provide patients and staff affordable
and sustainable power, especially during weather-                      Winner of 2019
related outages                                                        Association of Energy
                                                                       Engineers, Region 2
Microgrid owner installed a 3.2 MW CHP microgrid system:
                                                                       Energy Project of the Year
 Two 1,560 kW engines operating at 65% efficiency
 Load following and island mode capabilities
 Covers over 81% of the building’s energy needs
 Carbon footprint reduced by 58% or 16,800 tons per year*
   25 kV operating voltage with 3750 kVA step-up transformer

Microgrid owner installed a custom thermal solution to connect the
CHP system and boiler room:
 Over 4,000 linear feet of pre-insulated hot water piping with leak
  detection
 Pipes routed underground, on the roof, and along walls, with
  decorative covers
 Heat exchangers, pumps, valves, and digital controls

 “By installing the CHP, we achieve both environmental and
 economic stewardship that is a benefit to our community.”
                                  — Dr. Naleppa, President, PRMC

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*EPA non-baseload emissions data (eGRID 2016)

California Hospital Example

Northern California

Client goals: Add redundancy to hospital’s existing backup
generators, provide resilient power during California rolling
blackouts and other long-term utility outages (wildfires, etc)

Facility is installing a 420kW CHP-based microgrid system:
 One 420kW engine operating at 65% efficiency
 Load following and island mode capabilities
 Covers over 80% of the building’s energy needs
 Carbon footprint reduced by 15% or 16,800 tons per year*
   25 kV operating voltage with 3750 kVA step-up transformer

Other client benefits:
 Project contracted under an Energy Services Agreement at no
  capital expense to the client
 Projected lifetime energy savings of approximately $1.6M
 Anticipated Y1 electricity cost reductions from a utility cost of
  $.146 to onsite microgrid cost of $.119/kWh
 Redundant, reliable power during utility outages
 24/7/265 Operational and Monitoring support; no maintenance by
  client

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Thank you!

       Willis McCullough
       Unison Energy, LLC
       Director of Strategic Accounts
       Willis.McCullough@UnisonEnergy.com
       (704) 634-4071
       www.unisonenergy.com