300 MW PHOTOVOLTAIC PROJECT

Transcription

1 PEARL HARBOR SOLAR 300 MW PHOTOVOLTAIC PROJECT Asia Pacific Clean Energy Summit Defense Energy Challenge 1 September 13, 2011

2 Based in San Diego, California $30 Billion in Assets $9 Billion in Revenues Sempra Overview 2,500 MW of Gas, Wind, & Solar Photovoltaic Generation in Operation 2

3 Overview The Problem is that Hawaii is Totally Dependant on Expensive Foreign Oil: Hawaii depends on imported foreign oil to generate 90% of electricity needs Hawaii has the highest electricity prices in the U.S. The U.S. Military pays mores than $200 million each year for energy in Hawaii U.S. Citizens tax dollars are paying this $200 million annual bill The Solution is Pearl Harbor Solar which would provide: Clean Renewable Solar Electricity for both the Military and Hawaiian Electric Energy Security for both the Military and the Citizens of Hawaii $10 million in annual electricity cost savings for the U.S. Military and U.S. Citizens Economic and stable long-term energy prices for customers of Hawaiian Electric 3

4 300 MW Pearl Harbor Solar 4

5 50 MW Lualualei Solar 5

6 Pearl Harbor Solar 300 MW Ground-Mounted Fixed-Tilt Solar Photovoltaic Project 30 MW Solar Photovoltaic Project to supply Navy Hawaii 270 MW Solar Photovoltaic Project to supply Hawaiian Electric New Direct Transmission Link to Pearl Harbor and Honolulu New Battery Energy Storage System Adjacent to Pearl Harbor Navy Base on U.S. Government-Owned Land To be Developed, e Owned, and Operated by Sempra Energy, a Fortune 500 Company with a Proven Track Record in Solar Photovoltaic Development Total Installed Cost to Sempra of $1 Billion with Zero-Cost to Navy 2014 Commercial Operation Date 6

7 Benefits Supplies the Navy with Electricity at Zero-Cost for 25 years in exchange for an Enhanced Use Lease for a project to supply Hawaiian Electric Supplies Hawaiian Electric with Solar Energy at $170/MWh for 25 years Supplies 100% of Pearl Harbor Navy Base s Electricity Demand Provides Energy Security to Pearl Harbor via a Direct Transmission Link Provides Reliability to the Hawaiian Electric Grid with a new Transmission Link to Downtown Honolulu and Battery Energy Storage Supports the Renewable Energy Goals of the Navy, Hawaiian Electric, the State of Hawaii, and President Obama 7

8 Cost Savings to Navy Hawaii 300 MW Solar Project to supply Hawaiian Electric 30 MW Solar Project to supply Navy Hawaii Annual Electricity Production from 30 MW Project = 30 MW x 23% Capacity Factor x 8760 Hours/Year = 60,444 MWh/Year Annual Electricity Cost Savings to Navy Hawaii from 30 MW Project = 60,444 MWh/Year x $170/MWh = $10 Million in Savings per Year Total Electricity Cost Savings to Navy Hawaii from 30 MW Project = $10 Million x 25 Year Project Life = $250 Million in Savings over 25 Years 8

9 Ability to Deliver Pearl Harbor Solar would be Developed, Owned, and Operated by Sempra Energy, a Fortune 500 Company with a Proven Track Record in Solar Photovoltaic Development Sempra built, owns, and operates the largest solar photovoltaic project in the U.S., the 48 MW Copper Mountain Solar Project in Nevada, which was awarded Renewable Energy World s Project of the Year in 2010 Sempra is currently building the largest solar PV project in the world, the 150 MW Mesquite Solar Project in Arizona Sempra will start construction of the 150 MW Copper Mountain Solar 2 Project in early 2012 Sempra will also construct the Auwahi Wind & Energy Storage Project on the Island of Maui, Hawaii in

10 Asking for Enhanced Use Lease Sempra is seeking an Enhanced Use Lease (EUL) with Navy Hawaii to develop a Solar Photovoltaic Project of up to 300 MW at Pearl Harbor In exchange, Sempra would build, own, and operate a Solar Photovoltaic Project of up to 30 MW that would supply Navy Hawaii with electricity for 25 years at zero-cost The Naval Facilities Engineering Command (NAVFAC) initiated an EUL Process for the Pearl Harbor Solar site in early 2011 and created a website: However, the EUL Process has been put on hold due to budget constraints Sempra requests that Navy Hawaii expedite the EUL process and enter into direct negotiations with Sempra for an EUL for a 300 MW Solar Project 10

11 Next Steps Secure Enhanced Use Lease with Navy Hawaii December 2011 Initiate Detailed Engineering and Permitting January 2012 Execute Power Purchase Agreement with HECO June 2012 Start Of Construction December 2012 Initial Operation of first 30 MW with Navy Hawaii June 2013 Commercial Operation of entire 300 MW with HECO December