2024-GEN 00021 Published On: 09/09/2024
Question: Can you confirm that if a UOT track proposal were to be selected as a Winner that it would need to hold both the Step 2 Proposal Security and the LOI Security until the execution of the applicable Asset Acquisition Agreement? Or would the Proposal Security be released at the time of LOI execution, and just the LOI Security would be held until execution of the Asset Acquisition Agreement?
Answer: For a selected UOT proposal, pursuant to RFP Document Section V.J.3, the Step 2 Proposal Security will be released upon execution of the applicable definitive agreement (i.e the Asset Purchase Agreement (“APA”) or the Build Transfer Agreement (“BTA”)). Additionally, pursuant to RFP Document Section VII.F, market participants are required to provide additional LOI security of 3% of the asset bid price within 5 business days of executing the LOI, which will also be released upon executing the applicable definitive agreement (i.e. APA or BTA).
2024-GEN 00020 Published On: 09/05/2024
Question: Under this RFP, Duke has the right to terminate the PPA under Section 20.1.2, if the System Upgrade Costs in the executable version of the Interconnection Agreement are greater than 125% of the SUC estimate in the RSC Phase I Study results. Does Duke have to exercise this right to terminate the PPA under Section 20.1.2 before the Seller has to make the M4 payment deposit under the RSC process with DEP Transmission?
Answer: No, State projects will have paid M4; the “M4” deposit is due 10 days after receiving the Facilities Study results for the state jurisdictional projects.
This is described in Section 4.4.10.4 of the North Carolina Interconnection Procedures ncip-appr-oct292021-eff-oct112021-searchable.pdf (duke-energy.com) and in Section 5.3.10.4 in the SC Appendix CS.
2024-GEN 00019 Published On: 09/04/2024
Question: As a follow-up to FAQ 2024-GEN-00008, how will Duke ensure that BESS bids are comparable? Much like Duke requires all bidders to use a consistent platform (PVSyst) and even provides modeling parameters for production data, how will Duke verify if BESS performance estimates (losses, auxiliary load, degradation, etc.) provided by bidders in Appendix Q2 consistently complied with the modeling requirements in Appendix Q1?
Answer: Similar to solar only evaluations, SPS bids will be evaluated with tools that are designed for the evaluation of the BESS degradation. Market Participant provided information will be utilized as inputs and all of the proposals will be evaluated with a consistent approach.
2024-GEN 00018 Published On: 09/03/2024
Question: For an SPS bid, the RFP requires a BESS at about 40% capacity of the solar PV. What assumptions about discharge for the BESS and solar PV should we make? For instance, if the BESS is grid charged, will there be operating scenarios in which the PV and BESS will discharge simultaneously? In other words, should our maximum interconnection be the sum of the max PV capacity and the BESS capacity or should we assume the combined discharge will never exceed the PV, since the BESS will be used during low solar hours?
Answer: For the solar plus storage projects, DEC and DEP will use the maximum output of the solar facility for purposes of interconnection study. Using an 80MW solar facility paired with 32 MW of BESS as an example: the solar generating facility’s maximum output at the Point of Interconnection should not exceed 80MW, because in the interconnection study assumptions made by DEC and DEP, the BESS will not discharge when the solar facility is generating at its full capacity. For more information on how DEC and DEP study solar plus storage projects, please see the OATI Oasis posting “Duke Energy Business Practice: Studying Storage Interconnection Requests in DEC and DEP”at Storage_Studies_-_Duke_Energy_Business_Practice_2022-10-26.pdf (oati.com).
2024-GEN 00017 Published On: 08/30/2024
Question: Would a project be able to submit two 75 MW projects (either under the PPA or UOT track) that are located on sites next to each other and targeting the same transmission line?
Answer: Two projects interconnecting on separate transmission lines does not alleviate the requirements of the FERC 1 mile rule, which does not distinguish between the same transmission line or not. Projects owned by the same Interconnection Customer shall be in compliance with the FERC guidelines for the projects to be considered as qualifying facilities. Please also review the 2024 RFP, Section IV.B for additional guidance on PPA proposals. Note also if there are two projects in close proximity to each other, a multi-breaker switching station will likely be needed to connect into the transmission line.
2024-GEN 00016 Published On: 08/22/2024
Question: How is CRA managing confidentiality of project information for bidders that previously were shortlisted but did not either get selected or choose to execute a PPA or LOI for a UOT bid. Duke would have access to things like POIs, landowner information, cost estimates, design and other EPC information as well as a variety of other project information that could be used to create an unfair advantage?
Answer: All information provided by a Market Participant for a Utility Ownership Track Proposal is subject to the confidentiality agreement signed by the parties at the time of bid submittal. Further, for both the 2023 and 2024 RFP processes, the RFP established separation requirements pursuant to which (i) Utility Ownership Team members (which develop Utility-Developed Proposals) will not be involved in or responsible for the economic evaluation of any Proposals (which will be performed by the Independent Evaluator and the Duke Evaluation Team); and (ii) a separate Utility Bid Sub-Team that will solely and exclusively be responsible for any pricing refreshes to any Utility-Developed Proposals or Asset Transfer Proposal after Step 1 (i.e. don’t not have access to any Build-Own-Transfer Proposals).
More information is available in Section V.E of the 2024 RFP.
2024-GEN 00015 Published On: 08/22/2024
Question: Can you confirm that the $1.5M cap on Winners' Fees refers to the total of all Winners' Fees combined and that it is not capping the Winners' Fee per project at $1.5M per project. The most that a Winners' Fee would be for a project would be $1.5M divided and allocated on a pro-rata basis in solar MW among all Winners, correct?
Answer: Correct, the total Winners’ Fee is capped at $1.5 million, see 24 DEC DEP RFP Document, Section VIII Winners' Fee.
2024-GEN 00014 Published On: 08/19/2024
Question: For a UOT SPS proposal, a significant overbuild on day 1/COD will be required to maintain the BESS Performance Guarantees for the first 15 years of asset life without the ability to augment. Please confirm you are asking bidders to overbuild the BOT option to include enough extra batteries to cover degradation over the first 15 years of the asset life. Would Duke be open to a 2-7 year overbuild in conjunction with additional buildable acreage to accommodate additional BESS equipment in order to meet original nameplate capacity?
Answer: Technical requirements for UOT SPS proposals can be found in Appendix Q1. Appendix Q1 provides that “Cell replacement is only allowed at year 15. No other augmentation or replenishments are allowed throughout 15-year project life.” UOT SPS bidders are required to adhere to Appendix Q1, which does not permit cell replacement during the 15-year operating period for the BESS.
2024-GEN 00013 Published On: 08/13/2024
Question: Would Duke be open to a portion of a bigger facility as PPA and remainder as UOT, under a shared or separate POI? The RFP mentions "full output of Facility" under the PPA track, but any clarifications is appreciated here.
Answer: Yes, Duke Energy would consider a bigger facility split into a PPA (maximum output 80MW) and the remainder UOT as long as the POI is separate for each. Each unit requires its own metering and telemetry.
2024-GEN 00012 Published On: 08/07/2024
Question: If a project is located in a cooperative territory and a Duke Energy transmission line crosses the territory and would be used for interconnection, can this project be included in the RFP?
Answer: Facilities must be located in the Duke Energy Carolinas, LLC (DEC) or Duke Energy Progress, LLC (DEP) North Carolina or South Carolina service territory and must also physically interconnect with the DEC or DEP transmission system.
2024-GEN 00011 Published On: 08/07/2024
Question: Can you please confirm that Network Upgrade costs should not be included in the proposal price for an Asset Transfer? Additionally, would an Asset Transfer proposal be required to provide Network Upgrade security and hold that cost until closing if selected?
Answer: The proposal price provided by an Asset Transfer project should not include any Network Upgrade costs; new projects bidding into the 2024 RFP and participating in the Resource Solicitation Cluster will not know their Network Upgrades cost at the time the proposal price is due to be submitted. An Asset Transfer proposal would be required to provide M4 security to cover the cost of Network Upgrades once the Facilities Study is complete. The Asset Transfer proposal will also be responsible for executing and maintaining an Interconnection Agreement, including any additional securities that may be required under such Interconnection Agreement, until the Interconnection Agreement is assigned to DEC/DEP at closing of the definitive Asset Purchase Agreement.
Asset Transfer proposal that bids in the 2024 RFP with a fully executed Interconnection Agreement shall be solely responsible for the cost of any interconnection facilities and System Upgrades assigned to it under its Interconnection Agreement and shall bid accordingly as participation in the 2024 RFP will not alter any contractual obligations included in the MP’s executed Interconnection Agreement.
2024-GEN 00010 Published On: 08/02/2024
Question: Is there an updated estimated curtailment schedule that Duke can share based on the prior schedule that was shared in the 2023 RFP?
Answer: The updated File for Annual Solar Curtailment Estimates Due to Excess Energy is now posted here. All solar-only PPAs will be subject to the 5%/10% non-reliability curtailment rights as specified in the PPA. Other possible curtailment events include reliability curtailments for transmission events (these are infrequent and impact resources local to the transmission constraint that are exacerbating the constraint), and reliability curtailments for excess energy (these will presumably grow as more solar is on the system). From the modeling work that supports the Companies’ 2024 Carolinas Resource Plan filed on 1/31/2024 for Portfolio P3 Fall Base, we are providing year over year solar curtailment estimates due to excess energy (as a percent of the total solar generation). Please note that these figures are modeled assumptions and outputs based upon a snapshot in time as of when the modeling was produced and numerous factors can impact the need for curtailment in the future. Resource Solicitation/Procurement participants should review the terms of the applicable solar-only PPA for terms and conditions related to resource curtailment.
2024-GEN 00009 Published On: 07/31/2024
Question: re: 2024 RFP, can Duke provide up to date historical solar curtailment in its sub regions?
Answer: DEC and DEP publicly file quarterly reports with the NCUC providing historical solar curtailment data in Docket Nos. E-2, Sub 1178 Docket Details (ncuc.gov) and E-7, Sub 1175 Docket Details (ncuc.gov). Please note all solar-only PPAs will be subject to the 5%/10% economic curtailment rights as specified in the 2024 RFP PPA.
2024-GEN 00008 Published On: 07/29/2024
Question: In the evaluation of UOT bids for SPS Facilities, will Duke perform its own independent battery modeling to ensure that the requirements of Appendix Q1 and Q2 are met? If so, is there a specific tool that Duke uses for this modeling?
Answer: In the evaluation of SPS UOT bids, the utility’s Evaluation team will use the data provided in forms Appendix Q1 and Appendix Q2 by the Bidder to evaluate the operational profile and degradation of the BESS. No single specific tool or model is utilized for the evaluation.
2024-GEN 00007 Published On: 07/26/2024
Question: Can you confirm the following requirement applies only for UOT track proposals and not for PPA track proposals? "Bidders are expected to provide valid due diligence terms through mid-2028 (July), or longer, with a minimum of 18 months of a construction term and a minimum of 35 years of an operating term commencing at placed in service (if lease agreement);"
Answer: This requirement is listed in Section IV.A of the 2024 RFP, which only applies to UOT proposals.
2024-GEN 00006 Published On: 07/24/2024
Question: Can an MP submit a project under the UOT that does not meet the site control requirements outlined in Section IV.A of the 2024 RFP, provided that the project has a signed interconnection agreement from a previous serial process and the site due diligence term is sufficient to achieve the ISD under the interconnection agreement? I.e., can an MP submit a project that has site control through 2027, if the project COD is 2027?
Answer: Yes, an MP may bid a project into the UOT track that has site control through 2027; however, the proposal will be scored accordingly. Site control requirements are provided in “Section IV Proposal Tracks, A. Utility Ownership Track Proposal” bullet 6 -
"Provide sufficient and satisfactory site control rights for the Facility including delivery to the Point of Interconnection (POI) to develop and construct the proposed Facility within the timeframe laid out in the RFP. Bidders are expected to provide valid due diligence terms through mid-2028 (July), or longer, with a minimum of 18 months of a construction term and a minimum of 35 years of an operating term commencing at placed in service (if lease agreement);”.
There are other factors beyond just a fully executed interconnection agreement that may impact a project’s construction lead time, such as equipment availability, construction subcontractor availability, outage coordination, etc. As such, all UOT projects will be scored in accordance with the requirements provided.
2024-GEN 00005 Published On: 07/17/2024
Question: Is the maximum size project allowed to bid into this RFP 80 MWac? Will projects larger than 80 MW not be allowed?
Answer: For a power purchase agreement (PPA) track project, the maximum size is up to and including 80 MWac (based on the interconnection request) in both DEC and DEP. However, projects bidding into the Utility Ownership Track (UOT) of the RFP can be larger than 80 MWac (and any project greater than 80 MWac would be submitting their interconnection request as a FERC jurisdictional project).
2024-GEN 00004 Published On: 07/16/2024
Question: I’m trying to understand whether bat studies are required prior to RFP submission or only if the project is selected in the [2024] RFP. The RFP requirements and FAQ GEN 00070 on https://www.dukeenergyrfpcarolinas.com/FAQ/General contradict each other. Thanks in advance for clarifying. From the tariff: UTILITY OWNERSHIP TRACK PROPOSALS In addition to the requirements in Section III, Proposals for Facilities in the Utility Ownership Track must also meet all of the following: Include a habitat assessment and onsite acoustic survey for all listed and proposed to be listed bat species, as well as any bat species listed or proposed to be listed after the issuance of this RFP within bidder scope. Duke Energy, as project owner, shall have the ability to review and approve the scope of said studies before authorized. The U.S. Fish and Wildlife Service ("USFWS") has listed or proposed to be listed several bats species with habitat range in North and South Carolina. These species include the Indiana Bat (Myotis sodalist) and Northern Long-eared Bat (Myotis septentrionalis), both currently listed as endangered. The tricolored bat (Perimyotis subflavus) is proposed to be listed in the fall of 2023 as either a threatened or endangered species.
Answer: To clarify the guidance provided in GEN 00070 and 00007 for the 2023 RFP, for Asset Transfer and BOT bids, the Seller (the Market Participant) will be required to complete habitat assessment(s) and onsite acoustic survey(s), as established in Section IV.A. This will be the responsibility of the Market Participant and must be completed, along with all other applicable scope, as a condition to close pursuant to the applicable definitive agreement (Asset Purchase Agreement or Build Transfer Agreement). So, the assessment and surveys do not need to be completed prior to bidding a project into the RFP.
2024-GEN 00003 Published On: 07/16/2024
Question: Is the habitat assessment and acoustic survey for bats required prior to RFP submission for UOT projects? Considering the changing habits of bats which often change roosts seasonally, can it be assumed that a habitat assessment and acoustic survey will be required every year for the same project?
Answer: The habitat assessment and onsite acoustic survey requirements established in Section IV.A of the RFP, which apply to Utility Ownership Track projects, are not required to be completed prior to bid submission. The RFP provides guidance for bidders to plan to complete the habitat assessment and an onsite acoustic survey as part of their scope submission; whether and how often an assessment or survey will be required to be updated will depend on project specifics and then-current rules and regulations .
For additional information please see 2024-GEN 00003 and Q&As from the 2023 RFP - GEN00006, GEN00007 and GEN 00070.
2024-GEN 00002 Published On: 07/10/2024
Question: To clarify, for the 2024 RFP only the UOT proposals need to submit a habitat and onsite acoustic survey for all listed and proposed to be listed bat species, correct? PPA proposals are not required to submit that bat species information?
Answer: Correct, the habitat assessment and onsite acoustic survey requirements estimated in Section IV.A of the RFP only apply to Utility Ownership Track projects.
For additional information please see GEN00006, GEN00007 and GEN 00070, available at www.dukeenergyrfpcarolinas.com/FAQ/General.
2024-GEN 00001 Published On: 06/17/2024
Question: This question is regarding the upcoming 2024 RFP. Will Duke permit projects on local coop infrastructure to wheel power to them in this RFP?
Answer: Facilities must be located in the Duke Energy Carolinas (DEC) or Duke Energy Progress (DEP) North Carolina or South Carolina service territory and will physically interconnect with the DEC or DEP transmission system.