The potential for community-scale solar. Solar Power South East Wednesday 10 May 2017 Joseph Goodman, Titiaan Palazzi

Transcription

1 The potential for community-scale solar Solar Power South East Wednesday 10 May 2017 Joseph Goodman, Titiaan Palazzi

2 2 Our vision To provide clean, affordable electricity to every American. Our mission Work with communities, utilities, and solar developers to install 1 GW of community-scale solar by 2020 at 30-40% lower costs, making community-scale solar the most attractive renewable option.

3 Community-Scale Solar: defining a new market segment that can add significant value 3 BEHIND THE- METER COMMUNITY - SCALE UTILITY - SCALE TYPICAL SIZE 5 KW-0.5 MW ~0.5-5 MW MW INTERCONNECTI ON Behind-the-Meter Distribution Grid Transmission Grid ENERGY USER Households Businesses Utilities: coops, munis, and IOUs Direct subscribers Utility Customers (Primarily IOUs) DISTRIBUTED BENEFITS? LEVELIZED COSTS Yes Yes No 8 12 cents/kwh* 4 8 cents/kwh* 3 7 cents/kwh* * These are 2016 best-in-class price ranges, reflecting the difference in solar insolation, not uncertainty.

4 RMI s Shine Initiative helps buyers across the nation 4 CO: Procurement ongoing for 5 co-ops, 9 sites, ~15 MW NM: Procurement complete for 4 co-ops, 6 sites, 7 MW NY: Supported community solar projects in Syracuse and Rochester, for total of ~45 MW NC: Partnership with NCSU; first conversations with coops and NCEMC TX: Starting engagement

5 RMI s activities address cost, awareness, and access 5 Barrier 1. Cost 2. Awareness RMI s activities Aggregate regional demand Run competitive procurement Coach utilities to support development Standardize legal documents, e.g. PPA Calculate regional value of community-scale solar Clarify the benefits of shared solar vs. non-shared solar Reverse auction platform 3. Access Increase access for low-income households: Flexible off-take options with public agencies Innovative financing solutions such as loan-loss reserve

6 RMI tests cost reduction hypotheses in procurements, reducing PPA prices by >40% to date 6 PPA price reductions $/MWh Cost reduction levers: Competitive procurement Volume aggregation Utility-supported development ~35% ~45% Cost reduction levers: Further standardized procurement Financial innovations (e.g. pre-paying PPAs) Standardized system design 56 <50? Starting point (Lazard s 2015 community solar LCOE) Expected cost reductions Target PPAs Actual PPAs Future cost reductions Future PPAs

7 Community-scale solar contributes multiple benefits to different stakeholders 7 Distribution co-ops and municipal utilities Meet Renewable Portfolio Standards Meet member demand Defer distribution grid investments Reduce energy and demand charges Public agencies, such as cities or universities Meet citizen demand Reduce energy and demand charges Create local economic development Wholesale utilities, such as G&Ts Meet member demand Reduce energy generation and transmission costs Reduce peak system load Defer transmission grid investments

8 THANK YOU Joseph Goodman mi.org

9 RMI would like to support buyers in North Carolina to resolve important questions 9 When community-scale solar is more economical than other power generation and delivery, is community solar a good choice? How can community-scale solar benefit distribution utilities and power providers alike? What financial structures enable everyone to access the benefits of community-scale solar? How can financial structures leverage low-interest debt accessible to utilities and public agencies to reduce community-scale solar prices? What will happen when solar-and-storage costs are below the costs of grid electricity?