HomeMy WebLinkAbout05.a. (PowerPoint) Solar Power Purchase AgreementsItem No. 5.a
Regional Renewable
Energy Procurement (R -REP)
ECCD
February 19, 2015
Board Meeting
Public Hearing Presentation
Dan Frost, Associate Engineer
Public Health and the Environment
How do Solar PPAs work?
Facility's Power Demand (kWh)
100,,/ Typically Typically
Demand <30% >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 --> "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
Collection System Operations
Building
$' -•sue
COM- = '_
20 -Year Levelized Cost of Electricity:
Without PPA = S0.199 /kWh
With PPA = S0.165 /kWh
2/11/2015
R -REP Timeline
(4/21/14) E &O Committee
(1A 0/13) 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.
Completed
CCCSD Solar
Feasibility Study
(12/4/14) Board
Meeting vote to
table setting of
public hearing
date
R -REP RFQ /RFP led by
Alameda County (19
agencies, 180+ sites,
>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 and 01/08/15) Staff Presentation
for Board to Consider Setting Public
Hearing Date
Conduct Public Hearing &
Consider Awarding PPAs
(2/19/15)
20 -Year PPA Term (approx.)
Dec 2014- Mar 2015- ,
Nov 2014 Feb 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
Energy Cost Savings
Some Energy Cost Stability
High Visibility to Public
Aligns w /Strategic Plan
(Goal Four, Strategy 1)
Uses "Green" Power
(200 tons CO?/year reduction)
Grandfathered into NEM Tariffs
(NEM 2.0 by July 2017)
Reduced Effort w/R -REP
Lower Pricing w /Group Bids
Minimal Savings
Early Termination Fees
($5.82- $6.68/W in 1st year to
$1.18- $1.29/W in 20th year)
No Grants or Rebates Available
Potential Liabilities
(e.g. glare)
Solar Vendor Owns
Tax Incentives
Cannot Predict PG &E Rates
Site Constraints
Unforeseen Costs
2/11/2015
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2/11/2015