Renewable Energy Update Sustainability/Energy Committee April 22, 2014
Overview In-conduit hydro projects Photovoltaic projects Next steps
Briones In-Conduit Hydro Capture energy from water released from Briones Reservoir to Orinda Water Treatment Plant Energy currently dissipated through valves
Project Schematic BRIONES RESERVOIR ~230 feet Briones Draft/ Energy Dissipation Valve Briones PP LAFAYETTE AQUEDUCT NO. 2 ORINDA WTP LAFAYETTE AQUEDUCT NO. 1
Project Schematic BRIONES RESERVOIR ~230 feet Briones Draft/ Energy Dissipation Valve Briones In-Conduit Hydro Briones PP LAFAYETTE AQUEDUCT NO. 2 ORINDA WTP LAFAYETTE AQUEDUCT NO. 1
Initial Feasibility Study Initial feasibility study performed by N-Line Energy Proposed project Three 200 KW units (600 KW) 1,100 MWhs generation annually 196 MT GHG emissions reduction Simple payback 15 36 years Eligible for SGIP Grant and CEC low interest loan RFP to design project
Request for Proposals RFP issued December 2013 Propose project size Provide design bid Estimate total construction cost and annual generation Sent to 12 in-conduit developers Received two proposals Selected Water Works Engineers
Water Works Proposal Three 200 kw units Estimated generation: 940,000 kwh annually 167 MT GHG emissions reduction annually Total cost: $2 million SGIP grant: $215K
Project Economics Utilize Net Energy Metering (NEM) tariff PG&E annual escalation rate of 4.1% 30 year NPV: -$300K Break even analysis (NPV = $0) PG&E rate increase: 5.1% (no contingency) PG&E rate increase: 6.3% (with contingency)
Project GHG Reduction Energy policy (Policy 7.07) Provide economic benefit Support District s 2040 GHG goal 167 MT of GHG emissions reduction Compared against purchase of Tradable Renewable Energy Credits (TRECs) Briones in-conduit hydro is 10 to 40 times cost of TREC
Other Potential In-Conduit Hydro Projects Pilot at four distribution system regulators PG&E service not economical Supply up to 250 watts Provides power for lights, ventilation, sump pump and communications
Proposed Distribution System In-Conduit Hydro Project Inline Hydroelectric Generator
Upcountry Camanche Pumping Plant PV Project 5 MW system adjacent to Camanche PP Project Area: 12 acres Estimated generation: 10,000 MWh annually ADD PHOTO 1,780 MT GHG emissions reduction annually Estimated cost: $16 million
Project Economics RES BCT Tariff Transfer generation credits to other accounts at the retail generation credit Credit value: $0.06 per kwh 20 year NPV: -$4.5 million Power Purchase Agreement (PPA) Similar to sale of hydropower to SMUD Current pricing $0.04 - $0.06 per kwh Less cost-effective than RES BCT
PV Sales Options Net Energy Metering (NEM) ReMAT Replaces Feed in Tariff (FiT) Fixed price for term length: 10, 15 or 20- year options Not eligible for state incentives (CSI SGIP) Max project size 3 MW RES BCT Power Purchase Agreement
Economics of PV Projects Credit break even point ~ $0.12/kWh NEM tariff with positive NPV RES BCT positive in limited cases PG&E tariffs where NEM economical A-6 Medium accounts A-1 Small accounts
PV Sales Options Summary Sales Options Max Project Size (MW) Price Escalation Current Price/Credit ($/kwh) Net metering (NEM) 1 MW Yes A-1 Small: $0.19 A-6 Medium: $0.28 E-20 Large: $0.08 ReMAT (FiT) 3 MW No $0.089 RES BCT 5 MW Yes A-1 Small: $0.10 A-6 Medium: $0.13 E-20 Large: $0.06 Power Purchase Agreement N/A Market $0.04 - $0.06
CPUC Decision on NEM Existing PV systems will remain on current NEM tariff for 20 years Current NEM tariff available until July 2017 NEM capacity exceeds 5% of utility peak load New NEM tariff after July 2017 Expected to be based on lower generation credit
Potential PV Projects Investigated 80 District accounts Onsite electric load > 100,000 kwh Available area > 0.20 acres Southern exposure 25 potential sites Estimated 1.5 MW of potential PV capacity Additional investigation into feasibility Financing options Direct purchase Power Purchase Agreement
Next steps Complete pilot at four distribution system regulators Complete evaluation of potential PV projects Continue to investigate other opportunities