Solar Collaboration Among Local Governments. Presentation Overview

Transcription

1 Solar Collaboration mong Local Governments Jason Willett MCES ssistant General Manager, Finance & Sustainability and Director of Council Sustainability P: Presented to PW, ugust 29, 2016 Presentation Overview Metropolitan Council overview Solar overview Metropolitan Council solar projects Collaborations Other useful information/resources 2 1

2 bout Metropolitan Council Metro Transit (Buses and LRT) Metro Mobility Metro Transportation Planning MCES (Environmental Services) Local government planning coordination Regional parks funding Housing Efficient delivery of metro-scale services! 3 Metropolitan Wastewater Treatment Plant, St. Paul bout MCES Wastewater treatment 8 treatment plants 109 communities 370 million gallons/day wastewater capacity 250 mgd average flow 600 miles of pipes 61 lift stations 206 metering sites Water supply planning Water quality monitoring Industrial pollution prevention 4 2

3 Video bout Environmental Services 5 MCES Vision & Energy Goals To be a valued leader and partner in water sustainability Goals to reduced purchases of fossil fuel based energy: By 2010, reduce by 15% of 2006 usage. By 2015, reduce by 25% of 2006 usage. By 2020, reduce by 10% of 2015 usage. Goal to advance renewable energy development in the state. 6 3

4 Solar Radiance Map of the United States Clean Power: Top 10 Reasons the Government Pursues Solar 10. voids greenhouse gas emissions; 9. voids other air emissions; 8. voids thermal pollution of cooling waters from nuclear or fossil fuel generation plants; 8 4

5 Top 10 Reasons the Government Pursues Solar 7. voids using up resources that future generations may need for other things; 6. voids a piece of the $18 billion Minnesota spends out of state each year for energy; 5. Provides local jobs; 9 Top 10 Reasons the Government Pursues Solar 4. Distributed energy improves grid reliability; 3. Supports state and Council renewable and solar goals; 2. Provides price certainty for our operations and rate/taxpayers; 10 5

6 Top 10 Reasons the Government Pursues Solar ND... It can provide financial gains for rate/taxpayers! 11 Facility (or Building) Connected Solar Installed/Operational MCES about 1.25 MW Transit about 100 KW (C) Planned Transit about 4 MW MCES 350 KW (C) 12 6

7 Use of Marginal Land for Solar 13 Community Solar Garden Program 3 Each subscriber s utility bill is credited money from the electricity created by their share of the solar garden. 14 7

8 Community Solar Gardens on Council Property Local Government Roles: Host for sites Subscriber Procurement Blue Lake Plant 3 gardens (each 1MW) Empire Plant 5 gardens (each 1MW) Seneca Plant (Eagan) 1 garden (900kw) ll subscribed to by: MCES, Metro Transit and local governments served by the plants. 15 Local Government Subscriber Collaborative 31 participating governments/subscribers 185 MW estimated demand Transit 4 MW; MCES 6 MW Competitive procurement process Received 5 proposals 16 8

9 Steps for Participating Subscribe to at least 100KW Letter of Intent Joint Powers greement (JP) 17 Competitive Procurement Process 1. Request for proposals from developers asked for: Executive summary Team information, qualifications, experience and capabilities Technical review Price proposal Exceptions to requested subscriber agreement 2. Team Evaluation Panel Quality of Proposal Qualifications and experience cceptance of agreement? PRICE 3. Contract negotiations 18 9

10 Subscriber ssignment Process Eligibility determination Lottery used to match governments demand to solar supply offered. Limited days to opt in 2 nd lottery to fill holes Developer may fill any partially subscribed garden. 19 Benefits of Working Together (ie. why do this?) Economy of scale Speed increased Market leverage Diversity of skill sets = improved quality Staff learning from each other We wouldn t have been able to do this without the Metropolitan Council - Mayor 20 10

11 Complexities and Challenges with Government Solar Issues/Concerns/Perspective: Procurement Issues Technical experience Use of disadvantaged business Prevailing wages Local manufacturers Sole source 22 11

12 Issues/Concerns/Perspective: Contract Terms Governmental laws ssignments Deadlines Renewable Energy Credits (RECs) Options/early termination 23 Issues/Concerns/Perspective: Technical Site control Point of common coupling Internal specs Safety/security requirements 24 12

13 Issues/Concerns/Perspective: Siting issues Long term availability Marginal land use Local zoning approvals/limitations Co-benefits e.g. pollinators, trails Stormwater standards/maintenance/upkeep of site 25 Issues/Concerns/Perspective: Financial Pay-as-you-go (per kwh) Financial capacity demonstration Lender requirements Bill credit risk Guaranteed performance (our upfront costs, and opportunity cost) Impacts on our tariff energy purchases (demand, standby) Public-private partnerships are complex up front! 26 13

14 Collaborations Environmental Quality Board Climate Strategies and Economic Opportunities (CSEO) project Clean ir Minnesota The Climate Registry Xcel Energy Minnesota Sustainable Growth Coalition Metropolitan Energy Coalition State Interagency Teams University of Minnesota Solar Rate Reform Group e21 27 Solar Rate Reform Group Xcel Energy studied electric system capacity benefits of solar The Solar Rate Reform Group (SRRG) formed Decision: Capacity credit $5.15 per KW/month Flexibility of grace period New (2016) docket: change to kwh basics 28 14

15 e21 Initiative The Utility of the Future Disruptive Challenges Report Report: ce/documents/disruptivechallenge s.pdf 30 Graphic courtesy of: 15

16 Phase I report issued in December 2014 e21 proposes shifting toward a performance-based, multi-year utility earnings model & regulatory framework. 31 Report: files/e21_initiative_phase_i_report_2014.pdf TODY: Utilities earn money by... Building fixed assets Selling more electricity (kwh) The Build More, Sell More Model 32 16

17 TOMORROW: Utilities make money by delivering... Reward the delivery of VLUE more than CPITL INVESTMENT 33 What does a Grand Bargain look like? 1. EFFICIENCY: Highly efficient end use of energy in buildings, transportation, and industry. 2. DECRBONIZTION OF ELECTRICITY and reduced carbon in other kinds of fuels. 3. ELECTRIFICTION WHERE POSSIBLE and switching to lower-carbon fuels otherwise

18 Other Useful Information Supporting local governments Government policy Resources Technical ssistance to Local Gov ts Climate Vulnerability ssessment Supporting Local Units of Government Stormwater, Efficiency & I/I Grants Urban Forestry Program Development Community- Level Data for the Region 36 18

19 Governmental Policy Support For Sustainability Projects Triple Bottom Line Costs Environmental Traditional Financial Criteria Societal 37 Lifecycle Net Present Value Costs Environmental Environmental Financial Criteria Societal Environmental Societal Lifecycle Expected Net Present Value Environmental 38 19

20 Resources Metropolitan Energy Coalition Solar Toolkit Highlights: Typical solar cost Evaluating a site How to install Understanding project costs Solar policy in Minnesota 39 Resources Met. Council s Local Planning Handbook Helps communities update their local comprehensive plans. Highlights: Community pages with checklists Maps Resources specific to them Interactive mapping tools

21 Resources Clean Energy Resource Teams (CERTS) Community Solar Garden toolkit (great for beginners) Highlights: How much solar should I get? Definition of Community Solar Interviews with subscribers Range of players in a project Resources for subscribers and communities 41 Resources MetroCouncil.org Energy and sustainability fact sheets Our energy goals Plant facts wards information Conservation-Renewable-Energy.aspx 42 21

22 The End 43 Questions? 22