New 180 Megawatt Power Plant

Size: px

Start display at page:

Download "New 180 Megawatt Power Plant"

Ross Dennis
6 years ago
Views:

1 1 New 180 Megawatt Power Plant Overview to Guam Chamber of Commerce September 27, 2017 John Benavente, PE General Manager

2 2 Why Build a New 180 MW Plant? Exis9ng Cabras 1&2 MW baseload plant is over 42 years old. Most of other genera9ng units are over 20 years old. GPA s baseload units burn residual fuel oil and are non- compliant with recent USEPA regula9ons. GPA is currently subject to poten9ally over $150 million in penal9es should it not complete its compliance plan submiqed to USEPA. GPA lacks adequate baseload units to meet future demand. It is becoming more difficult to keep the 42 year old plant running un9l Exis9ng baseload units do not work well with intermiqent renewables such as solar PV and wind. GPA an9cipates contrac9ng for over 150 MW of renewables over the next five years as a hedge against increasing fuel cost.

3 3 New Power Plant Characteris9cs Future power plant to be constructed in compliance with both USEPA and GEPA Regula9ons. Plant will meet all air, water, noise and other regula9ons in order to be permiqed for opera9ons. Plant to operate on Ultra Low Sulfur Diesel or Natural Gas which are both considered by USEPA as clean fuel. New technology is much simpler than the exis9ng baseload ones which would result in higher reliability and safer opera9ons. Plant to be substan9ally more efficient than the exis9ng units resul9ng in reducing GPA s annual fuel consump9on by over 11,000,000 gallons. Dual fuel capability would result in rela9vely stable rates because GPA would no longer be only 9ed in to the very unstable fuel oil market.

4 For Illustra9ve Purposes Only 4

5 For Illustra9ve Purposes Only 5

6 6 Why a New Plant in Ukudu? Elevated from poten9al tsunami and storm surges; currently all baseload units suscep9ble to these credible threats. Close to the Northern District Waste Water Treatment Plant (NDWWTP) allowing use of grey water for cooling purposes which would reduce demand on the aquifer by over 3 million gallons per day. Close to Major Substa9on and Load Centers thereby improving reliability and reducing line losses (about $3M/Year). Plant to directly 9e- in to major underground transmission lines providing for poten9al opera9ons through typhoons and for quick recoveries ager storms, especially in Tumon. Topography is generally flat without wetlands. Most public right- of- ways available to result in expedient construc9on. USEPA to assist in expedi9ng Air Permits because loca9on is acceptable. The exis9ng Cabras Power Plant area is designated a non- aqainment area and therefore a new plant there would require substan9ally more 9me to permit. Inadequate land area at Cabras to construct plant

7 NDWWTP Harmon Substn Current Aerial View 7

8 New 180MW Power Plant at Ukudu provides substan;al reliability improvements 8 GPA has placed vital power transmission lines underground from the Harmon Substa;on to key load centers of Guam s economy including GMH, GIAA, Tumon Bay, Tamuning, Harmon, Dededo and AAFB).

9 9 GPA will not be able to meet Demand without New Power Plant by 2021 Summary of System Genera/ng Capacity With No New Baseload: With New 180MW Descrip/on FY 2015 FY2017 FY2021 FY2021 Baseload MW Capacity Emergency/Standby Capacity Total MW Capacity Peak MW Demand Reserve Margin Total Two Largest Units Reserve Less Two Largest Units % Baseload Capacity 71.4% 51.0% 51.0% 57.3% % Energy from Baseload 98.0% 80.0% 62.2% 72.6% % Energy from Renewables 0.0% 3.5% 26.4% 26.4% % Energy from Emergency/Peaker 2.0% 16.5% 11.4% 1.0%

10 10 Renewables can only provide 25% of Guam s Energy needs by CY2021. Conven;onal Energy a Must! MW Solar PV; 65MWH ESS Conven9onal Supply Reduced by 15MW At Peak MegawaVs ESS Solar PV Conven9onal :00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

11 Renewable PorWolio Standards (RPS) Achieved by

12 12 Projected Power Related Investments Thru 2021 Descrip/on: Amount Investor Agreement Type Renewables, Phase II HANWHA, KEPCO $350,000,000 Private En99es Power Purchase Agreement Renewables, Phase III Navy Land Lease $120,000,000 Private En99es Power Purchase Agreement New 180 MW Power Plant $300,000,000 Private En99es Independent Power Producer New 180 MW Power Plant Pipeline & Transmission $100,000,000 GPA Revenue/Other Funds Natural Gas Infrastructure ( When Oil > $60/Bbl.) $200,000,000 Private En99es Independent Power Producer Total: $1,070,000,000

13 13 Targeted CY 2022 Fuel Cost and Barrels Reduc;on for Various Scenarios July 2017 Fuel Oil Prices: RFO = $55/Bbl.; ULSD = $75/Bbl. Scenario: Annual Cost Cost Variance Avg. $/kwh Total BBLs. BBL. Variance Exis9ng CY 2017 Units $168,819,330 $ ,640,096 0 Addi/onal 150MW Renewables $157,383,401 - $11,435,929 $ ,938, ,663 USEPA Forced Compliance $197,519,886 $28,700,556 $ ,034, ,407 New 180MW (ULSD) $168,881,229 $61,899 $ ,653, ,633 New 180MW (Natural Gas) $141,495,393 - $27,323,937 $ ,558-2,551,538

14 14 Will the New Plant Affect Base Rates? GPA has indicated that base rates would stay at about current level despite the new power plant $400M investment. Poten9al Sources of Offsesng Funds: Cabras 3&4 Insurance SeQlement Proceeds $80M Plus??? Cabras 1&2 Re9rement (Reduced Cost of $10M/Year) MEC 8&9 Turnover to GPA (Reduced Cost of $15M/Year) TEMES 7 Turnover to GPA (Reduced Cost $4M/Year) Other Cost Saving Ini9a9ves (Company Right Sizing) Reduc9on of FTE (dropped about 35 FTE in past three years) Over9me Reduc9on (dropped from $3.2 M to $1.4M in FY2017) Refinancing of 2010 Bonds ($300K/year) Demand Side Management Programs to reduce Peak Demand

15 15 Summary GPA urgently needs the land to build the new power plant which would make it compliant with USEPA, reduce consump9on of fuel oil, meet future demand, and work well with renewables in order to provide a sustainable future for the island. Failure to construct and commission the new 180MW power plant will hinder GPA from mee9ng future power demand resul9ng from new developments including military buildup. GPA s plan of the new power plant burning ULSD and Natural Gas coupled with renewables will minimize upward price risks associated with unstable fuel oil markets which had resulted in Guam s residen9al energy rate rising as high as $0.29/kWh. Plans underway would very likely bring rates to below $0.20/kWh as it was in January 2017 GPA plans to not increase base rate to cover cost of new plant Time is of the Essence for the new plant Please help us achieve a sustainable energy future. Si Yu os Ma åse

Bill No Legislative Public Hearing Land Rezoning. Guam Congress Building February 09, 2018

Bill No Legislative Public Hearing Land Rezoning. Guam Congress Building February 09, 2018 Bill No. 223-34 Legislative Public Hearing Land Rezoning Guam Congress Building February 09, 2018 2 The Guam Power Authority respectfully requests I Liheslaturan Guåhan to SUPPORT Bill 223-34, introduced