EPA Green Power Partnership Clean Energy Collaborative Procurement Initiative Metropolitan Washington DC For Local Agencies.

Transcription

1 EPA Green Pwer Partnership Clean Energy Cllabrative Prcurement Initiative Metrplitan Washingtn DC Fr Lcal Agencies March

2 Prgram Discussin Agenda Prgram Missin Statement Cllabratin Apprach Reginal Benefits Prgram Mdel and Timeline Financing Optin Discussin Case Study and Site Bundling Apprach Getting Started 2

3 Metr DC Clean Energy Cllabrative Prcurement Initiative Overview Launched by EPA s Green Pwer Partnership Based n successful Silicn Valley cllabrative mdel Gvernment partners including Federal, Lcal, Military, Higher Educatin Fcused n agencies in the greater Metrplitan Washingtn DC Area Missin: T develp an effective and cllabrative platfrm fr deplying clean energy (predminately slar PV) acrss multiple gvernment and educatinal rganizatins fr maximum impact n installed slar systems, the lcal ecnmy, and reginal envirnment. 3

4 WA: 15% x 2020* OR: 25% x 2025 (large utilities)* 5% - 10% x 2025 (smaller utilities) Natinal, State and Lcal Plicy Drivers MT: 15% x 2015 NM: 20% x 2020 (IOUs) 10% x 2020 (c-ps) / March 2011 ND: 10% x 2015 SD: 10% x 2015 MN: 25% x 2025 (Xcel: 30% x 2020) WI: Varies by utility; 10% x 2015 statewide NV: 25% x 2025* IA: 105 MW CO: 30% by 2020 (IOUs) 10% by 2020 (c-ps & large munis)* CA: 33% x 2020 UT: 20% by 2025* KS: 20% x 2020 MO: 15% x 2021 AZ: 15% x 2025 OK: 15% x 2015 MI: 10% + 1,100 MW x 2015* IL: 25% x 2025 VT: (1) RE meets any increase in retail sales x 2012; (2) 20% RE & CHP x 2017 NY: 29% x 2015 OH: 25% x 2025 WV: 25% x 2025* VA: 15% x 2025* NC: 12.5% x 2021 (IOUs) 10% x 2018 (c-ps & munis) DC ME: 30% x 2000 New RE: 10% x 2017 NH: 23.8% x 2025 MA: 22.1% x 2020 New RE: 15% x 2020 (+1% annually thereafter) RI: 16% x 2020 CT: 23% x 2020 PA: ~18% x 2021 NJ: 22.5% x 2021 MD: 20% x 2022 DE: 25% x 2026* DC: 20% x 2020 TX: 5,880 MW x 2015 PR: 20% x 2035 HI: 40% x 2030 Renewable prtfli standard Renewable prtfli gal Slar water heating eligible Minimum slar r custmer-sited requirement * Extra credit fr slar r custmer-sited renewables Includes nn-renewable alternative resurces 29 states + DC and PR have an RPS (7 states have gals) Agencies arund the cuntry are develping grup prjects when ecnmically feasible 4

5 Demnstrated Cllabratin Benefits Achieve Strategic Sustainability Plans faster by wrking tgether Aggregatin yields greater market interest and better pricing (10% - 15%) Wrking tgether yields lwer prject risks with higher returns Dramatically reduce transactins csts and administrative effrt (50%) Demnstrate leadership natinally, reginally and lcally Very few mandatry Federal/Lcal prgrams reduce lng-term csts, but Renewable energy can generate savings, when managed prperly Strategic planning demands a cmprehensive apprach, but Need t shrten the lng learning curve n new technlgies 5

6 Metr DC Cllabratin Mdel Enable Reginal Cllabratin, Cmmunicatin & Supprt Independent Slar Prject Expertise - Optny Lead Agency Fed-Civilian/Fed-Military/Higher Ed/Lcal Agencies + Participating Agencies Phase 1 # Sites & # MW Create Jbs Ecnmic Grwth Energy Savings GHG Reductins Private Sectr Resurces, Prjects, Financing 6

7 Prject Timeline Q Agencies Recruited Sites Identified Strategy Develped Q2 & Q RFQ/RFPs Issued Vendr Awards Cntracts Negtiated April 2011 Site Studies Cmpleted June 2011 RFP/RFQ Issued Q Cnstructin Begins Phase 2 Additinal Agencies & Sites 7

8 Financing Chices Impact Prject Design & Outcme Financing Structures Direct Purchase Pwer Purchase Agreement Tax Exempt Lease Prduct Bnd Financing Enhanced Use Lease Utility Financing Energy Service Cntract Majr Impact On: Perfrmance Risk Up-Frnt Csts Lng-Term Returns Prcurement Prcess System Design Prject Benefits Operatins & Maintenance 8

9 Direct Purchase Ownership Custmer wns, perates, and maintains the system Owner has full respnsibility fr perfrmance Maintenance cntracts and perfrmance guarantees can be purchased Capital Csts Full cst f system due at delivery (sme interim payments may be required) May be partially ffset by rebates & incentives Financial Benefits Lng-term savings generally the highest with direct purchase Custmer retains Slar Renewable Energy Credits (SREC) Custmer receives federal, state, and lcal incentives and rebates Nn-taxable rganizatins cannt capture any tax benefits Very lw perating csts, effectively capping electricity csts fr 25 years 9

10 Pwer Purchase Agreement Ownership PPA, LLC wns, perates, and maintains the system PPA receives all federal, state and lcal incentives, rebates and tax benefits System utput is the respnsibility f PPA, but Custmer must buy ALL pwer prduced Capital Csts N up-frnt capital csts Financial Benefits Fixed price per kwh with knwn annual escalatin (2% t 5%) ver 20 years Savings are generally very lw in the early but increase ver time PPA r Custmer wns Slar Renewable Energy Credits (SREC), based n cntract System sizing must be carefully evaluated and Perfrmance Guarantees shuld be included Payback perids can be quite shrt because there is n initial capital csts Custmer can purchase the system at the end f the PPA term fr FMV 10

11 Equipment Lease Ownership Leasing cmpany (bank) wns the system Fixed mnthly payments fr 7-15 years Leasing cmpany takes available federal tax benefits Custmer has full respnsibility fr perfrmance Maintenance cntracts and perfrmance guarantees can be included Capital Csts N up-frnt capital csts May be sme transactin csts Financial Benefits Lease term saving generally minimal, but then very high nce purchased End f lease buy-ut fr FMV r abut 20% f initial value Custmer generally retains Slar Renewable Energy Credits (SREC) Custmer receives state, and lcal incentives and rebates 11

12 Lan & Bnd Financing Ownership Custmer wns the system, but finances with Bank r thrugh agency bnds Fixed mnthly payments fr years Custmer has full respnsibility fr perfrmance Maintenance cntracts and perfrmance guarantees can be included Capital Csts Capital csts are financed, but must review debt capacity Transactin csts can be significant fr bnding Financial Benefits Savings can be minimal in the early years, but then increase ver time System is fully wned at the end f the finance term Custmer retains Slar Renewable Energy Credits (SREC) Custmer receives federal, state, and lcal incentives and rebates Nn-taxable rganizatins cannt capture any tax benefits 12

13 Silicn Valley Reginal Slar Prject Overview San Francisc San Jse Includes 70 sites Cllabratin acrss 9 jurisdictins 14.4MW f cmbined slar PV Multiple Site Types: Carprts Rftps Grund munted Largest multi-agency effrt t date Cunty f Santa Clara 6 Cities 2 Special Districts LESSONS: Aggregated effrt yields vlume discunts, lwer administrative and transactins csts, alng with better qualified vendrs and prjects. 13

14 Metr DC Area Reginal Benefits - TBD EXAMPLE frm Silicn Valley, CA Reliable cst f electricity ver 20 year term, escalatin rates 2%-4.5% Vlume & cmpetitive pricing yielded 10-14% cst reductins Electricity cnsumptin cmpletely ffset fr 25% f sites Prjected t generate $70M+ in lcal ecnmic activity and 300+ jbs Over $30M in Federal tax benefits captured via PPA (ITC + Depreciatin) Demnstrated leadership with large number f installatins Capture lng-term REC benefits with future ptential fr resale 14

15 Clean Energy Technlgy Examples Slar Phtvltaic (PV) Panels/Mdules Slar Ht Water Wind Turbines Fuel Cells 15

16 Slar Carprt Structure Examples Addresses rftp cnstraints Prtects vehicles frm weather Electric vehicle-ready 16

17 Strategic Bundling Apprach Thrugh review f individual site characteristics Lk fr ptential sizing issues and pprtunities Cnsider site-specific and agency-level cnstraints Incentive structures, financing ptins, cntracting requirements, prcurement prcess Bundling sites by installatin type, hst facility, size and ther attributes Make bundles attractive t qualified integratrs Incrprate slar market input Capabilities, ecnmies f scale Avid deal-breakers fund in many ther prjects Cnsider ttal size (MW) and number f sites per bundle Sme bundles can be t small r t large Evaluate ther nn-pv ptins 17

18 Getting Started Indentify sites acrss yur rganizatin fr ptential slar develpment Recruit ther departments and agencies t aggregate sites and cmbine effrts Define gals, cnstraints and success factrs Determine financing and cntracting requirements and ptins Utilize internal and external expertise t assess sites and tailr prcurement effrt Cnvene stakehlders t review plans and build supprt fr the initiative! EPA website with prgram resurces: 18

19 Defining Slar Energy Fr Prject Spnsrs 6 Ways t Maximize Slar Prject Impact: Leadership & Ecnmic Develpment GHG Reductins Design Integratin Return n Investment Ttal Energy Offset Ttal Savings Team must agree n priritizatin f these cmpeting gals t be successful 19

20 Slar Site Feasibility Studies Independent, slar expert firm On-site survey & meetings Enhanced sizing evaluatin Structural & Electrical evaluatin LCOE Financial analysis Funding and incentive ptins Current pricing & trends Technical risk assessment Wrld-class tls & methds 20

21 Slar Dne Right Recent Prject Example 3 Sites (ut f 5) Selected 2.1 MW Slar Capacity 20-year PPA $2.7M Savings ver 20 years 1.8 Millin VMT Reductin 21

22 Prject Cntacts Blaine Cllisn, Directr, EPA Green Pwer Partnership James Critchfield, Directr, RE Technlgies & Market Transfrmatin Ben Fster, VP f Operatins, Optny (Cntractr t EPA) Ben.Fster@ptny.cm

23 ABOUT EPA s GREEN POWER PARTNERSHIP The Green Pwer Partnership is a vluntary prgram that supprts the rganizatinal prcurement f green pwer by ffering expert advice, technical supprt, tls and resurces. Partnering with EPA can help yur rganizatin lwer the transactin csts f buying green pwer, reduce its carbn ftprint, and cmmunicate its leadership t key stakehlders. Credible Benchmarks Metric fr Hw much green pwer is enugh? Definitin f eligible renewables Planning & Implementatin Resurces Green pwer lcatr Purchasing guidance Marketing and cmmunicatins supprt Envirnmental benefits calculatr Recgnitin Tp Partner Lists Green Pwer Leadership Awards Prmtinal pprtunities Use f the Partner lg 23

24 ABOUT OPTONY INC. Optny develps and deplys slar best practices acrss the entire slar prject lifecycle fr gvernment agencies, schls and cmmercial rganizatins. Wrking with clients acrss all phases f slar prjects creates deep insight int true perfrmance drivers which is used t reduce csts and imprve perfrmance at any stage in the prcess. System Optimizatin Prject Management Prgram Management Maximum Slar Benefit Prcurement Management Feasibility Assessment Optny Inc. is a cntractr t the U.S. Envirnmental Prtectin Agency 24