HomeMy WebLinkAbout06.a. (Handout) Power purchase agreements with Sun EdisonRegional Renewable
Energy Procurement (R -REP) Update
December 18, 2014
Board Meeting
Dan Frost, Associate Engineer
_.A@CNCSDJ�
Public Health and the Environment
How do Solar PPAs work?
Facility's Power Demand (kWh)
100% Typically Typically
Demand <30 °0 >70%
Demand Demand
PG &E PG &E Solar PPA
Off -Peak Peak
Power Power
Without PPA OR With PPA
How do Solar PPAs work?
• PPAs allow use of renewable energy w/o upfront investment
• Solar company: designs/ constructs /owns /operates /maintains
• District: Agrees to buy power at fixed escalation (20 year, 2 %)
• Current PG &E rate schedules 4 "Solar- friendly" PG &E rate sch.
• Sized for Optimal Savings (varies by site - specific factors):
Power demands (time of use)
Solar production (site constraints, degradation)
. Financial factors (rate schedules, PPA pricing, escalation)
Avoided over - production (PG &E compensation < PPA pricing)
Lower overall power costs with PPA:
( "solar- friendly" PG &E costs + PPA costs) < (PG &E costs)
Payback Not Applicable
R -REP Timeline
(4/21/14) E &O Committee
(1/10/13) CCCSD recommended staff
Board Authorized continue to evaluate sites (9/22/14) Staff
GM to execute and agreed on triple update to E &O
MOU with R -REP bottom line approach Committee
Optony, Inc.
R -REP RFQ /RFP led by
Completed
Alameda County (19
CCCSD Solar
agencies, 180+ sites,
Feasibility Study
>30MW) per CA Govt
Code 4217.12
• Sun Edison selected for
bundle with CCCSD sites
R -REP Group PPA
negotiations
R -REP Timeline
(12/18/14) Staff Presentation for Board to
20 -Year PPA Term (approx.)
Nov 2014> 201c / Jan 2015 - July 2015 July 2015 - July 2035
(11/24/14) Staff
Consider Setting Public Hearing Date
(12/4/14) Board
Presentation & Phases (approx.)
Committee
Meeting vote to
recommended
Conduct Public
table setting of
setting and holding
Hearing & Consider
public hearing
Awarding PPAs
date *
(Prior to Feb 291h)
20 -Year PPA Term (approx.)
Nov 2014> 201c / Jan 2015 - July 2015 July 2015 - July 2035
(11/24/14) Staff
+ Design and
(12/9/14) Staff Construction
Update & E &O
Presentation & Phases (approx.)
Committee
E &O Committee
recommended
recommended
setting public
setting and holding
hearing date
public hearing date
y` Annual Energy
Use, kWh 2�' 2
Proposed Solar _
-�� System Size, kW
Year 1 Solar 2
.f
Output, kWh
Year 1 Energy
Offset w /Solar
Year 1 Electricity
Costs =
i.V1 20 -Year
20 -Year Levelized Cost of Electricity:
Without PPA = 50.199 /kWh
With PPA = 50.165 /kWh
Energy Cost Savings
Some Energy Cost Stability
High Visibility to Public
Aligns w /Strategic Plan
(Goal Four, Strategy 1)
Uses "Green" Power
(200 tons CO2/year reduction)
Grandfathered into NEM Tariffs
(NEM 2.0 by July 2017)
Reduced Effort w/R -REP
Lower Pricingw /Group Bids
Minimal Savings
Early Termination Fees
($6.63- $8.59/W in 1st year to
$1.53 41.85/W in 20th year)
No Grants or Rebates Available
Potential Liabilities
(e.g. glare)
Solar Vendor Owns
Environmental Credits
Cannot Predict PG &E Rates
Site Constraints
Unforeseen Costs
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