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HomeMy WebLinkAboutSaft Response to KEA RFP - December 23, 2014 SAFT America Inc. Energy Storage Business Unit 13575 Waterworks Street Jacksonville, FL 32221 Page 1 of 6 13575 Waterworks Street, Jacksonville FL 32221 Tel. (904) 861-1510 Fax (904) 772-1463 www.saftbatteries.com Response to KEA Request For Proposal Kotzebue Electric Association P.O. Box 44 Kotzebue, Alaska 99752 Date: December 23, 2014 Dear Kotzebue Electric Association, Saft would like to thank you for the opportunity to respond to your “Request for Proposal” (RFP) for the procurement of an Energy Storage “ES” system. Saft has embraced the Kotzebue Electric Association (KEA) Inc. RFP objective and looks forward to helping KEA improving its energy reliability and operational efficiency as well as reducing operational costs. Saft has a long-track record of deploying durable, cost effective and value added battery systems and is pleased to offer a complete ES solution to KEA which would include two (2) battery containers (Intensium Max 20P-8 or Intensium Max+ 20M) and two (2) ABB EssPro™ Power Conversion System (PCS) in an indoor lineup – please see further technical details under respectively “Saft - IM20P-8 Technical Description.pdf”, “Saft - IM+20M Technical Description.pdf” and “ABB - EssPro PCS Technical Description”. Technical Solution The PCS operates with the batteries operating over a 609 to 812 VDC voltage range and has been rated to take maximum advantage of its overload capability for a short duration as specified by KEA, i.e. with a capability of both delivering 2.5 MW for five minutes and also capable of “grid forming.” To get the most optimized PCS for this application, the system rating is based on taking advantage of the 130% overload capability for five minutes (75% pre-load condition). This means, even though the continuous rating of the PCS system in this proposal is 2 x 1000 kVA, the system is capable of meeting the 5 minute rating of 2.5MW. Combining both Saft and ABB’s experience in respectively the battery and electric drive industry, this solution will support KEA for the following intended applications:  Spinning reserves allowing the BESS to support the entire KEA load as needed, either as a result of a wind ramp event or because of a generator trip  Load shifting enabling the storage of energy during a wind event while allowing an appropriately sized diesel engine (smaller than one required to meet the entire load) to opera te at its highest efficiency during and for some time period after the wind event  Black-start enabling a small diesel generator to shut off or restart during wind events to save as much diesel fuel as possible.  Frequency and voltage regulation supported by the bi-directional inverter capable of “grid forming”, that is, maintaining frequency and voltage without an external grid, and capable of diesels on/diesels off transitions. The base proposal using Saft’s IM20P-8 containers is sized for ‘Configuration 2’ of the KEA RFP. This product is optimized for a high power -to-energy ratio, providing excellent performance for short discharges of a few minutes’ duration. Furthermore, this configuration will perform the full 2.5 MW, 5-minute discharge when the battery has degraded to 70% of rated energy, allowing the system to perform tens of thousands of full discharges and hundreds of thousands of partial discharges over a life of 20 years or more. SAFT America Inc. Energy Storage Business Unit 13575 Waterworks Street Jacksonville, FL 32221 Page 2 of 6 13575 Waterworks Street, Jacksonville FL 32221 Tel. (904) 861-1510 Fax (904) 772-1463 www.saftbatteries.com In order to address KEA’s desire for load-shifting capability (Configuration 1) while retaining the spinning -reserve functionality of Configuration 2, we have provided the optional configuration with IM+20M containers. This configuration increases the installed energy from 672 kWh to 1,900 kWh, providing a major increase in flexibility to achieve greater fuel savings. With this extra energy, for example, the BESS could provide an extended capability to balance wind resources and load, allowing diesels to be shut down for prolonged periods. We acknowledge that the pricing of our optional configuration, when combined with transportation and site work, may exceed the $3M cap on the project cost. However, this configuration is very flexible and we can remove parallel battery strings, or ESSUs, to optimize the cost and remain under the project cap. Saft would be happy to work with KEA on an optimized solution in this respect. Saft’s extensive micro-grid experience in polar climates Furthermore, Saft employs a very robust system modeling capability using Matlab-Simulink battery models that have been developed over several years. These models include not just the electrical and thermal characteristics of the battery but also provide aging data, allowing the aging effects of different load profiles to be assessed. Saft would be happy to work with KEA on multiple application scenarios to determine the optimum use of this BESS. Saft has extensive experience in providing BESS solutions in Arctic environments and provided the battery for the ABB- led project to construct the Golden Valley Electric Association BESS in Fairbanks, Alaska, commissioned in 2003 and still in reliable operation after 11 years. The BESS provides spinning reserves and other services to the GVEA network and is now seeing increased use to cover wind -ramp events occurring at the Eva Creek wind farm. More recently, Saft delivered a two-container lithium-ion BESS to Cowessess First Nation in Regina, Saskatchewan under a project run by the Saskatchewan Research Council. This system operates with a large wind turbine and provides a variety of services, including ramp-rate control, wind firming, energy shifting, etc. Finally, Saft has just shipped a single-container BESS to Northwest Territories Power Corporation for a small diesel- powered network in Colville Lake, north of the Arctic Circle. The container is heavily insulated and includes hydronic heating coils for hot-water, rather than electric, heating of the system. We performed extensive si mulations for NTPC that quantified expected fuel savings and led to a determination of the total amount of solar power to be installed. A partial list of Saft’s ES projects is included in the attachment to this response (“ESS_Container projects_EN_May2014”). SAFT America Inc. Energy Storage Business Unit 13575 Waterworks Street Jacksonville, FL 32221 Page 3 of 6 13575 Waterworks Street, Jacksonville FL 32221 Tel. (904) 861-1510 Fax (904) 772-1463 www.saftbatteries.com Commercial Offer The below pricing reflects an offer from Saft to design, manufacture and supply the complete BESS (Battery and PCS), ex works from Saft and ABB’s factories. This offer also comes along with a 2 year equipment and labor warranty and includes field services activities to support the installation, commission and train the Customer’s personnel on the system. System Price* (USD) BESS Configuration - 2.5MWAC Equipment Price (1yr Warranty) Site Activities Shipping Total (Equipment & Labor) Option 1 – 2.5MW AC for 5 minutes Two IM20P-8 w. 8 ESSU, 2MW indoor PCS, 1.14kV Xfmr (672kWh, 2MW) $1,769,818 $73,520 $0 $1,843,338 Option 2 – Increased Energy Two IM+20M, 2MW indoor PCS, 1.14kV Xfmr (1.9MWh, 2MW) $2,380,212 $79,373 $0 $2,459,585 Please note that due to a late receipt of the original RFP and in the interest of time, this proposal to KEA only reflects a preliminary response. It is our understanding that the complete RFP package (RFP.KEA.2014.11.21.xls) will be completed at a later stage, should KEA have further interest in this high quality solution. We trust that our offer meets with your satisfaction. Should you require any further assistance, please do not hesitate to contact the undersigned. Kind regards, Blake Frye, VP Energy Storage SAFT America Inc. Energy Storage Business Unit 13575 Waterworks Street Jacksonville, FL 32221 Page 4 of 6 13575 Waterworks Street, Jacksonville FL 32221 Tel. (904) 861-1510 Fax (904) 772-1463 www.saftbatteries.com Notes: 1) Commissioning, oversight of installation and training is based on 20 or 24 man-days for respectively solutions 1 and 2. Any unforeseen additional days required will be billed at costs + mark-up. 2) Definition of communication interface including communication protocol and operational algorithm to be clearly defined in conjunction with KEA. 3) Saft will provide a two (2) year equipment warranty and requires a preventative maintenance (PM) contract for the Intensium Max containers over such warranty period. The high-level conditions of such warranty includes but are not limited to the following: a. Saft will provide a standard warranty against defects and workmanship for 24 months after provisional acceptance or no later than 27 months after shipment of the equipment. b. The warranty covers repair or replacement (at Saft’s choice) of parts found defective during this period, excluding normal wear. The warranty requires a prev entative maintenance contract. c. The warranty does not apply for defects resulting from improper handling, operation or poor maintenance of the equipment or their use / supply outside the prescribed tolerances. It does not cover production losses either. d. Saft shall not be responsible for providing working access to the nonconforming Equipment, including disassembly and re-assembly of non-Saft supplied equipment, or for providing transportation to or from any repair facility or site location, all of which s hall be at Purchaser's risk and expense. e. Saft may offer extended warranty terms at additional costs. At this stage Saft does not envision any change to operational parameters; however, in order to offer such warranty extensions to longer periods, Saft reserves the right to limit the operational characteristics of the facility to reduce the rate of battery aging. “THE FOREGOING WARRANTY IS EXCLUSIVE AND IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY. ALL OTHER WARRANTIES (INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR PARTICULAR PURPOSE) ARE HEREBY EXPRESSLY DISCLAIMED.” 4) Preventative maintenance (PM) price for the BESS is $17,698 or $23,802 annually, for respectively solution 1 and 2, and is required throughout the warranty periods. Extended warranties can be provided for up to 25 years upon request and for additional costs. 5) Saft guarantees 2.5MWAC discharge power within design operational conditions. The guarantee also covers 70% of nameplate energy while BESS is under warranty. 6) Payment terms are net thirty days from date of invoice with progress payments as defined in current contract. 7) Offer is valid for 90 days. 8) Price does not include any associated taxes. 9) Saft Standard Terms & Conditions of Sale shall apply (following pages) Page 5 of 6 13575 Waterworks Street, Jacksonville FL 32221 Tel. (904) 861-1510 Fax (904) 772-1463 www.saftbatteries.com SAFT AMERICA INC. – STANDARD TERMS AND CONDITIONS OF SALE GENERAL: The terms and conditions of sale contained herein (these “Terms and Conditions”) shall apply to all quotations and offers submitted by Saft America Inc. (“Saft”) to any third party (“Customer”) and purchase orders received from a Customer and accepted by Saft for the sale of goods (collectively, “Goods”) by Saft. All sales are made pursuant to an individual invoice prepared by Saft and delivered to Customer (each an “Invoice”), are subject to the these Terms and Conditions, and Saft objects to any di fferent or additional terms or conditions contained in Customer’s purchase order or any other document submitted by Customer. Saft’s acceptance of any purchase order or other document submitted by Cus tomer is expressly made conditional on Customer’s assent to these Terms and Conditions. COMPLETENESS: These Terms and Conditions and each Invoice (each as supplemented by the quantity of Goods ordered and the related delivery dates thereof set forth on any purchase order, order acknowledgement, Invoice or other document delivered by the parties pursuant to t he terms of these Terms and Conditions) contain the final and entire agreement regarding the sale of Goods by Saft to Customer. Terms or conditions contained in any purchase order or other document submitted by Customer which in any manner pur port to alter, modify, change, suspend or add to any of these Terms or Conditions shall be deemed excluded from such purchase order or other document and waived by Customer. Customer cannot modify, cancel or otherwise alter orders after Goods are in process without Saft’s written consent. Any such modification, cancellation or alteration shall be subject to conditions as negotiated at such t ime, which shall include protection of Saft against loss. DELIVERY, TITLE AND RISK OF LOSS: All Goods sold shall be delivered by Saft F.O.B. Saft’s facility, unless otherwise agreed in writing by Saft. If shipped freight prepaid, the charge for freight will be added to the related Invoice. Risk of loss or damage in transit shall be borne by Customer and claims shall b e made directly with carrier. Any specified delivery dates are approximate. Partial deliveries shall be permitted. Saft shall not be responsible for delays in delivery or performance due to causes beyo nd its reasonable control, including, but not limited to, acts of God, acts of Customer, strikes or other labor disturbances, inability to obtain fuel, material or parts, delays in transportation, repairs to equipment, fires or accidents. If performance by Saft is delayed by reason thereof, it shall notify Customer, and time for performance shall be extended for the period of such contingency. If, as a result of any such contingency, Saft is unable to perform any accepted order in whole or in part, then to the extent that it is unable to perform, such order shall be deemed ter minated without liability to either party, but shall remain in effect as to the unaffected portion thereof, if any. If a delivery is delayed as a result of any action or inaction of Customer, Saft may invoice Customer for the Goods as of the scheduled delivery date and may charge Customer for expenses incurred because of the delay (including without limitation costs of storage, insurance, and other incidental costs), and Saft’s obligations shall be deemed fulfilled as of the scheduled delivery date. Accepta nce of Goods upon delivery shall constitute a waiver by Customer of any claim for damages on account of delays in delivery. If manuf acture is delayed or suspended by Customer, payment shall be made based on the contract price and percent of completion. PRICES AND TERMS: The purchase price of the Goods covered by these Terms and Conditions shall be as stated on the face of each Invoice. All prices are exclusive of any installation or service Customer may require. The charge for such services may be negotiated and listed on a separate line item on an Invoice. Pro-rata payments shall become due as shipments are made. Customer shall be liable for the price of all Goods substantially conforming to the order, notwithstanding that Customer may not have accepted same or may have revoked acceptance of same. Approval of credit for one or more deliveries of Goods shall not be deemed a waiver by Saft of the provisions of this paragraph. PAYMENT: Customer agrees to pay Invoices for delivered Goods within 30 days from the respective Invoice date, after which time such payment shall be delinquent. Any past due Invoice shall, from the date due, be subject to a finance charge equal to (1) the lesser of one and one-half percent (1½%) per month or the highest rate allowed by law multiplied by (2) such delinquent amount. Additionally, Customer shall be responsible for all collection costs, court costs, and reasonable attorneys’ fees (where allowed by law) in connection with the recovery of any delinquent accounts. Customer agrees to provide Saft, upon request from time to time, with updated financial information certified by an owner, officer, partner or o ther authorized individual of Customer, as a condition to the continued extension of credit to Customer. Customer acknowledges and agrees that Saft may utilize outside credit reporting services to obtain information on Customer. Should Saft grant Customer credit availability, all decisions with respect to the extension, continuation or termination of credit shall be at Saft’s sole discretion. Customer understands that the continued solvency of Customer is a precondition to any sale made by Saft. Upon request from time to time, Customer agrees to certify in writing to Saft that Cus tomer is and remains solvent, and by submitting a purchase order to Saft, Customer represents and warrants that it is so solvent. If, in Saft’s opinion, the credit of Customer becomes impaired, Saft may, at its sole option, suspend performance of its obligations to Customer until such time as Saft has received full payment or satisfactory security for deliveries of Goods made and is satisfied as to Customer’s credit for future deliveries. If Customer fails to make payment in full or refuses to provide Saft with satisfactory security or other adequate assura nce of performance, then Saft shall have the right to enforce payment of the full purchase price for Goods already delivered, and may (a) cancel the unfinished portion of all open orders for Goods and charge Customer an equitable amount for such cancelled orders, (b) proceed with delivery of all open orders for Goods, or (c) suspend performance of all open orders for Goods, in which case, Saft shall be entitled to such extension of ti me for performance as is necessitated by the suspension. SALES TAXES AND DUTIES: Unless otherwise stated, Saft’s prices do not include sales, use, excise or any other duties, including all export and import fees and port handling fees. All taxes of any kind levied by any federal, state, municipal or other governmental authority which Saft is required to collect or pay with respect to the sale or shipment of Goods sold hereunder (excluding only income taxes imposed on the net income of Saft) shall be the responsibility of Customer. Customer agrees to pay all such taxes and t o reimburse Saft for any such payments made by Saft. PACKING: All Goods shall be suitably packed for domestic shipment, unless otherwise requested by Customer and agreed to in writing by Saft. WARRANTY: Subject to standard manufacturing variations and other limitations set forth herein, Saft warrants that each Good furnished pursuant to these Terms and Conditions or any Invoice shall, for a period of five (5) years from Saft’s delivery of such Good, be free from defects in materials and workmanship and shall conform to their respective specifications set forth or referenced on the face hereof or thereof or in specification sheet(s), product brochure(s), or catalog(s) prepared b y Saft covering such Good; provided, however, that this warranty does not cover defects or failure caused by improper handling, storage, maintenance or repair or by any modification, abuse or abnormal use of such Good after delivery by Saft. Saft shall not be responsible for providing working access to the nonconforming Equipment, including disassembly and re -assembly of non-Saft supplied equipment, or for providing transportation to or from any repair facility or site location, all of which shall be at Purchaser's risk and expense. THE FOREGOING WARRANTY IS EXCLUSIVE AND IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY. ALL OTHER WARRANTIES (INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITN ESS FOR PARTICULAR PURPOSE) ARE HEREBY EXPRESSLY DISCLAIMED. CLAIMS FOR DEFECTIVE GOODS: If Customer believes that a Good is defective, it must obtain a Return Material Authorization (“RMA”) number from Saft prior to shipment of such Good back to Saft. The RMA number must appear on all packages returned to Saft and be referred to in all related correspondence. Return shipment of the Goods for wh ich damages are claimed shall be at Customer’s expense, and such Goods shall not be returned, repaired or discarded without Saft’s written consent. Returned Goods will be subject to inspection and final determination as to whether or not any adjustment is due. If the inspection shows that the warranty for the Good in the preceding paragraph is breached, Custome r’s exclusive remedy against Saft, and Saft’s sole obligation, for any and all claims (whether for breach of warranty, breach of contract, tort (including negligence and strict liability) or otherwise) shall be limited to, at Saft’s option, repairing or replacing the defective Good or refunding the purchase price of such defective Good. Such repair, replacement or refund is the sole remedy with respect to de fective Goods. Refunds may be applied against Customer’s open balances at Saft’s sole discretion. In no event shall Saft have any liability for damages in an amount exceeding the purchase price of the related defective Goods nor shall Saft have any liability for incidental or consequential damages. The foregoing remedies (repair, replacement or refund) are Customer’s sole and exclusive remedies with respect to all warranty claims on defective Goods (including any express warranties and/or under any implied warranties not negated by these Terms and Conditions). Warranty claims must be ma de within the warranty period or are forever waived. The provisions of this paragraph limiting remedies to repair, replacement, or refund and limiting liability and excluding consequential or incidental damages are independent provisions and any determination that any such limitation of remedies fails of its essential purpose or any other determination that any of the aforementioned provisions are unenforceable, shall not be construed to make any other provision of these Terms and Conditions unenforceable. SEVERABILITY OF BREACH: Any defect in quality or delays in delivery or non-delivery shall only affect the particular installment of Goods so defective or delayed and shall not affect the balance of the Goods covered by these Terms and Conditions and/or any Invoice. Any delivery not in dispute shall be paid for on the due date, as provided in these Terms and Conditions, without offset, defense or counterclaim and regardless of controversies relating to other delivered or undelivered Goods. DEFAULT BY CUSTOMER: If Customer (1) fails, with or without cause, to furnish Saft with specifications and/or instructions for, or refuses to accept deliveries of, any of the Goods here in sold, or (2) is otherwise in default under or breaches or repudiates these Terms and Conditions, any Invoice, or any other contr act with Saft or (3) fails to pay when due any Invoice or any amount due under said contracts, then, in addition to any and all other remedies which Saft may have hereunder or by law, Saft may, without notice (a) bill and declare due and payable all amounts for undelivered Goods subject to these Terms and Conditions or subject to any other contract with Saft, and/or (b) defer shipment of Goods subject to these Terms and Conditions, subject to any Page 6 of 6 13575 Waterworks Street, Jacksonville FL 32221 Tel. (904) 861-1510 Fax (904) 772-1463 www.saftbatteries.com other contract with Saft or subject to any Invoice, in each case until such default, breach or repudiation is removed, and/or (c) cancel, in whole or in part, any undelivered portion of Goods subject to these Terms and Conditions or subject to any other contract with Saft. Notwithstanding any action taken by Saft pursuant to clauses (a), (b) and/or (c), Customer shall remain liable for all damages incurred by Saft. RETURNS: All sales are final. No Goods may be returned without Saft’s prior issuance of a RMA number. The RMA number must appear on all packages returned to Saft and referred to in all related correspondence. Goods returned with freight due and/or without payment of a restocking charge of 25% of the Invoice will be refused. DISPUTED DEBTS: Communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent t o: Saft America Inc., 6196 Lake Gray Blvd., Suite 108, Jacksonville FL, United States of America, Attn: Chief Financial Officer. CHANGES AND REVISIONS: Saft reserves the right to make revisions and changes in its Goods and assumes no obligation to incorporate these changes in earlier models. PATENTS: Subject to the limitations set forth below, Saft shall at its expense and option defend or settle any claim of infringement of a valid United States patent brought against Customer based upon any Goods furnished under these Terms and Conditions. Saft’s liability under this indemnification clause is expressly limited to infringement of United States patents and in no event shall exceed the purchase price of the alleged infringing Goods or part. Saft shall not be liable under this provision unless (1) Saft is notified promptly in writing by Customer of any claim for which indemnity is sought; and (2) Customer gives Saft its full and complete authority, information and assistance in defending or settling any such cla im. In no event shall Saft be liable for settlements made without its written consent. In the event an infringement claim results in the issuance of a final and binding injunction by a court of competent jurisdiction against further use of such Goods or part thereof, Saft retains the right, at its sole discretion, to (a) procure for Customer the right to continue to use said Goods or part thereof, (b) modify said Goods or part thereof so that it becomes non-infringing; or (b) remove said infringing Goods or part thereof and grant Customer a credit for the depreciated value thereof. Saft makes no express or implied warranty that Goods sold hereunder will not infringe any United Sates or foreign patents, trademarks or mask work registrations. The sale of any Goods hereunder does not convey any license by implic ation, estoppels or otherwise covering combinations of any Good with other devices or elements. Customer shall hold Saft harmless against any expense or liability from claims of unfair competition, infringement or contributory infringement of any patents, trademarks, copyrights or mask work registrations related to Goods sold hereunder arising from (i) Saft’s compliance with Customer’s designs, specifications or instructions; (ii) use of any Goods in combination with goods not supplied by Saft; and/or (iii) use of any Goods in connection with a manufacturing or other process. GOVERNING LAW: These Terms and Conditions and each Invoice shall be governed by the laws of the State of North Carolina, and shall expressly not be governed by the United Nations Convention for Contracts for the International Sale of Goods. For any action brought by Customer against Saft, exclusive jurisdiction and venue shall be Charlotte, North Carolina. For a ny action brought by Saft against Customer, Customer consents to the nonexclusive jurisdiction and venue of any state or federal co urt located in Charlotte, North Carolina. WAIVER; AMENDMENT: No waiver, amendment, supplement or modification of any provision of these Terms and Conditions or of any term or conditions set forth on the face of any Invoice shall be effective unless made in a writing signed by an authorized officer or employee of Saft that specifically identifies these Terms and Conditions or such the terms and conditions set forth on the face of any Invoice and the provision intended to be waived, amended, supplemented or modified. Each such waiver, amendment, supplement or modification will be effective only in the specific instance and for the specific purpose for which given.