Alternative Power Purchase Agreements

Transcription

1 Advancing Wind Power in Illinois AnnualConference 2012 Alternative Power Purchase Agreements Katherine Ellis National Renewables Cooperative Organization 1

2 Cooperative Joint Participation in Wind Projects Katherine Ellis, NRCO Illinois Wind Working Group July

3 CEO Hired NRCO Milestones 1st Member Interest 1st PPA Signed 2nd & 3rd PPA Ex. Solar Ownership Pursued 4th PPA Ex. 3rd Wind RFP RE Developer Hired 2nd Wind RFP Solar Vendor Selected 1tWi 1st Wind RFP Biomass Proposed Solar RFP 5th PPA Ex. Q Q Q4 Q Q4 Q Q4 Startup Ownership Analysis Wind Analysis Biomass Review Wind Analysis Solar Project Wind Analysis Solar Ownership 2

4 NRCO Members 3 3

5 NRCO Objectives Enable the Cooperative Program to Broadly Pool the Ownership and Benefits of Renewable Resources Provide On going Opportunities for Access to and Development of Cost Effective Renewable Energy Resources Provide Access to Expertise on Renewable Energy Resource Commercial Issues Positive Visibility and Publicity for the Cooperative y y p Program 4

6 NRCO Services to Co-ops Facilitate Pooling of Renewable Resources among Co ops of All Sizes Provide Centralized Renewables Market Intelligence Evaluate Projects, Presenting Only the Most Promising i Development Opportunities Provide Transmission Constraint Modeling Renewable Energy Credit (REC) Market Analysis Engineering Studies Establish Subscription Process to Participate in Specific Projects Ongoing Management of Renewable Resources 5 5

7 NRCO Developer Relationships Access to a Nationwide Organization of Load Serving Entities Focused on Renewable Energy Projects Aggregation of Cooperative Needs Across Technologies (Wind, Solar, Biomass, Hydro) NRCO Assists Cooperatives es in Developing eloping Optimal Structures res PPA Special Purpose Entities Ownership Opportunities RFPs NRCO Willing to Consider Strategic Alliances 6 6

8 Member Motivations Renewable Energy Standards (RES) 29 States, DC & Puerto Rico with RES 8 States have Goals 12 States Include Co ops Evolving Renewable and Environmental Political Landscape (Federal & State) Community Development Portfolio Diversification Regulatory and Legislative Hedging Economics 7

9 NRCO Process & PPA Template 8

10 NRCO Subscription Process PROJECT STEP DELIVERABLE DOCUMENTATION Project Screening Valuation Term Sheet Presentation Indication of Interest Agreement of Interest Project Interest Transmission/LMP Ownership v. PPA Technology review Letter of Understanding Agreement Legal/Financing Documents PPA/EPC/Asset Closure Asset Management Sale Contracts 9

11 PPA Template Standardized Template Created with Outside counsel Pre approved by Members Buyer s View of the World But Must Be Financeable 10

12 Curtailment Key Terms Reliability (emergency) Economic (negative LMPs) Environmental Attributes t All claims, credits, benefits, emissions reductions, offsets, and allowances Existing and Future Products Divergences: Credit Terms Unique to Each Co op Assignment Language depending on RUS Borrower Status 11

13 Completed Projects 12

14 Renewable Efforts Wind Solar Biomass Other SPP 1 UC (12/2012) MISO 1 COD (12/2011) Woody Proposed: Texas & Kentucky Small Hydro Developer Contacts PJM 1 COD (5/2009) 2UC (12/2012) Cooperative Owned 1 UC (12/2012) LFG Projects Reviewed GA, OK, IN ERCOT Projects Analyzed Northeast Projects Analyzed Biodigesters Technology Reviewed Coal Bed Methane Technology Reviewed 13

15 NRCO Projects Mehoopany Pioneer Trail Stony Creek Shooting Star Flat Ridge II Stony Creek Mehoopany Pioneer Trail Shooting Star Flat Ridge II SMECO Solar Total 52.5MW 140MW 40MW 104MW 51.2MW 5.5MW 393.2MW SMECO Solar 14 14

16 150.4MW Pioneer Trail Wind Farm Paxton, IL NRCO Share is 33% of the Project SIPC 10 MW WVPA 10 MW PPI 20 MW Technology GE 1.6 xle turbines 100m ground to hub towers 82.5m rotor diameter blades Pioneer Trail Energy, Environmental Attributes, and Capacity Enough energy to power 16,043 homes 190,780 tons of carbon emissions avoided each year 15