APWA Sustainability Conference June 28, 2011

Transcription

1 Big Solar Strategies for Small Communities APWA Sustainability Conference June 28, 2011 Abbreviated Version for Handout Presented by: Ben Foster, VP Operations, Optony Inc. Contact:

2 Big Solar Strategies for Small Cities o Introduction o Defining Solar Project Goals o Lifecycle Management Planning o Financing Options o Collaborative Procurement Case Studies o Project Commissioning & Operations o Getting Started 2

3 ABOUT OPTONY INC. Optony is a global organization providing independent, expert services to government agencies, schools and commercial organizations. Program Management Optony s team develops and deploys solar best practices across the entire solar project lifecycle to reduce costs and improve long-term performance. System Optimization Maximum Solar Benefit Feasibility Assessment Project Management Procurement Management Optony's consulting service is a must-have for any organization considering an investment in solar. Based on Optony s comprehensive analysis and recommendations, we now have a low-risk, high-return solar strategy. 3

4 Solar Energy Technology Examples Solar Photovoltaic (PV) Panels/Modules Solar Hot Water Utility Scale Concentrated Solar Farm 4

5 WA: 15% x 2020* OR: 25% x 2025 (large utilities)* 5% - 10% x 2025 (smaller utilities) CA: 33% x 2020 NV: 25% x 2025* National, State and Local Policy Drivers UT: 20% by 2025* AZ: 15% x 2025 MT: 15% x 2015 CO: 30% by 2020 (IOUs) 10% by 2020 (co-ops & large munis)* / March 2011 ND: 10% x 2015 SD: 10% x 2015 NM: 20% x 2020 (IOUs) 10% x 2020 (co-ops) KS: 20% x 2020 MN: 25% x 2025 (Xcel: 30% x 2020) OK: 15% x 2015 WI: Varies by utility; 10% x 2015 statewide IA: 105 MW MO: 15% x 2021 MI: 10% + 1,100 MW x 2015* IL: 25% x 2025 VT: (1) RE meets any increase in retail sales x 2012; (2) 20% RE & CHP x 2017 NY: 29% x 2015 OH: 25% x 2025 WV: 25% x 2025* VA: 15% x 2025* NC: 12.5% x 2021 (IOUs) 10% x 2018 (co-ops & munis) DC ME: 30% x 2000 New RE: 10% x 2017 NH: 23.8% x 2025 MA: 22.1% x 2020 New RE: 15% x 2020 (+1% annually thereafter) RI: 16% x 2020 CT: 23% x 2020 PA: ~18% x 2021 NJ: 22.5% x 2021 MD: 20% x 2022 DE: 25% x 2026* DC: 20% x 2020 TX: 5,880 MW x 2015 PR: 20% x 2035 HI: 40% x 2030 Renewable portfolio standard Renewable portfolio goal Solar water heating eligible Minimum solar or customer-sited requirement * Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources 29 states + DC and PR have an RPS (7 states have goals) Agencies around the country are developing solar projects when economically feasible 5

6 Solar Project Lifecycle Management Solar Strategy Feasibility Assessments Vendor Procurement & Financing Project Commissioning System Optimization Define Right Strategic Approach Find Best Solar Sites Best-in-Class Vendors & Financing Right Components, Design, Construction Highest Long-term Returns Properly managing all phases of the project will create the greatest long-term value 6

7 Financing Choices Impact Project Design & Outcome Financing Structures o Direct Purchase o Power Purchase Agreement o Tax Exempt Lease Product o Bond Financing o Enhanced Use Lease o Utility Financing o Energy Service Contract Major Impact On: o Performance Risk o Up-Front Costs o Long-Term Returns o Procurement Process o System Design o Project Benefits o Operations & Maintenance 7

8 Collaboration Benefits for Solar Projects o Achieve aggressive sustainability plans faster by working together o Aggregation yields greater market interest and better pricing (10%- 15% cost reductions) o Working together yields lower project risks with higher returns o Dramatically reduce transactions costs and administrative effort (50%- 75% decrease) o Demonstrate leadership locally, regionally and nationally o Very few mandatory programs reduce long-term costs, but o Renewable energy can generate savings, when managed properly o Strategic energy planning demands a comprehensive approach, but o Need to shorten the long learning curve on new technologies 8

9 Example 3: Small City Group Project 4 Cities, 33 Sites (2.2MW capacity) 21 Viable, 5 Potential, 6 Not Viable Challenges: Small sites, structural & electrical equipment upgrades, no capital funds available Opportunities: Visible demo projects, aggregated effort to drive costs down, leverage EPA/DOE funds LESSONS: Evaluate different financing and purchase options for different sized sites, all cities leveraging a very efficient process for site evaluation and procurement, existing working structure is very beneficial for moving projects forward. 9

10 Resources: o World Resources Institute o EPA Green Power Partnership o DOE Solar America Communities guide_for_local_governments/ o IRECUSA Field Inspection Guidelines for PV Systems

11 Solar Site Feasibility Checklist o Portfolio approach to site evaluation o On-site survey & meetings o Utility rate evaluation o Independent solar expertise o Structural & Electrical evaluation o 20 year LCOE Financial analysis o Review funding and incentive options o Use current pricing & trends o Technical risk assessment o World-class tools & methods 11

12 Questions? For more information, please contact: 12