Transcript Review of Financial Policy & Strategic Issues and

PV SOLAR PROJECT
OPPORTUNITIES
For the
Plymouth Public Schools
Bob Patterson
August 30, 2010
W. Robert Patterson & Associates
WRPA
Plymouth Public Schools’
PV Solar Renewable Energy Initiative
•
Green Community Act – MA Dept of Energy Resources – Funds PV Solar
Projects for School Systems and Municipalities.
Opportunity for • Photovoltaic (PV) Arrays for All Plymouth Schools, and
•
Renewable Energy Kiosks in School Lobbies & Internet Access for Staff
& Students to Renewable Energy Statistics
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Green Communities Act
•
New Massachusetts Legislation - Green Communities Act – SRECs
• Solar Renewable Energy Credits (SRECs) – 28.5 cents / kWhr
• Solar Renewable Energy Credits (SRECs) – for projects less than 2,000 kWe
• Solar Renewable Energy Credits (SRECs) – 400,000 kWe total limit on projects.
• SRECs are sold to PV Solar Developer to fund PV Solar Project.
•
PV Solar Project Electricity – Credit Against School’s NStar Meter
• Basically – Full Credit of Electric Energy & Distribution Costs on School’s Bill.
•
Solar Energy Industry Response to Green Community Act –
• Developers willing to finance projects to get contracts.
• Project implementation – months not years – lower risk to fossil/wind
• Power Purchase Agreements - Long Term (15 – 20 years) @ low stable pricing
• Falling costs for solar panels – from $5 - $6 / watt to $3 - $4 / watt.
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How PV Solar Projects Impact
PPS Energy Budget
•
PV Solar System developer sells electricity to PPS at low fixed price.
•
PV Solar Systems decreases NStar electricity purchase at each school by the
amount of solar electricity produced.
•
Solar electricity purchased reduces each school’s NStar electricity monthly bill.
•
Difference between NStar price and PV Solar price generates savings –
• Example: NStar price @ $0.15 / kWhr less PV Solar price @ $0.05 / kWhr times - the 100,000 kWhrs solar electricity produced = $10,000 annual cost
savings.
•
PPS Electricity budget saving - 11% to 15% of PPS’ $2.0 million electricity
budget.
- $210,000 to $300,000 per year for 20 years.
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Major Benefits
•
Zero Capital Commitment by Schools –
• Project Costs – Paid up-front by developer.
• Typical System Cost – PCIS - $4.5 million; Indian Brook - $1.5 million
• Total PV Solar Investment - $12 million to $14 million
• Low Cost Electricity – 3 to 5 Cts / kWhr vs 15 Cts / kWhr
• Saves $210,000 to $300,000 per year in electricity costs.
• Lifetime savings – (20 year contract) - $4 million to $6 million.
• Short Project Implementation Timetable –
• Commercial Operation in 4 to 6 months - not years as with wind energy.
•
Long Term Stable Pricing –
• Price escalation as low as 1% to 2% per year.
• Plymouth Schools can contract for 20 years – 10 years w/ 10 year extension.
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Why Plymouth Schools?
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Majority of schools have ideal flat roofs.
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Implementation & operation scheduled to allow roof replacements.
•
Structural integrity of roofs will be assessed
•
Significant project size – up to 3.0 MWe
•
Immediate energy cost reduction - of $210,000 to $300,000 / Yr
•
Funds set-aside to pay for removal & reinstallation of PV Solar
panels during roof replacement out of energy cost savings.
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WRPA
Introduction
W. Robert Patterson & Associates
•
W. Robert Patterson & Associates
- Assists Plymouth Public Schools (PPS) with electricity, natural
gas & fuel oil contracting.
- Assists many communities & school systems with PV Solar
project development.
- Assists many communities & school systems with energy contract
negotiations.
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Plymouth School System Projects
School
PV System
Capacity
(kWe)
PV Solar
Production
(kWhrs)
Project A South Middle
South Elem.
West Elem.
Comm. Intermediate
318
388
280
968
362,800
442,377
318,600
1,102,000
1,108,000
695,700
702,300
2,439,600
$36,200
$44,240
$31,800
$110,200
Project B Federal Furnace
Cold Spring Elem
Indian Brook Elem
Nathaniel Morton
Manomet Elem
Admin Building
Hedge Elem
280
63
313
86
104
33
14
318,600
72,100
356,775
98,102
118,750
37,700
15,733
737,280
105,180
830,500
141,102
514,000
166,565
84,000
$31,800
$7,210
$35,677
$9,810
$11,875
$3,770
$1,573
7,524,227
$324,200
Total – Projects A & B 2,847
3,242,000
2009 Electric
Usage
(kWhrs)
Cost Savings
@ 10 cts/kWhr
$ / Yr.
Other Project Opportunities South HS
Pre-School Oak Street -
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PPS Project Plans
• Project A –
•
•
South Middle, South Elementary, West Elementary & Plymouth
Community Intermediate School
1.95 MWe solar capacity – $8 million to $8.8 million
• Project B –
•
•
Federal Furnace, Cold Spring, Indian Brook, Nathanial
Morton, Manomet, Hedge & Admin. Building.
0.893 MWe solar capacity – $3.6 million to $4.0 million
•
•
South High School, Oak Street & Pre-School
100 to 200 kWe solar capacity –
• Other Opportunities –
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Important Contracting
Documents
• Plymouth Public Schools – Request for Proposals
•
•
Technical Proposal with Developer Qualifications.
Payment Proposal with payment terms & conditions.
• PPS Power Purchase Agreement –
•
Sets the Terms and Conditions of the PPS price of electricity.
• PPS Facility Lease Agreement –
•
Stipulates access to and use of School Facility Roofs.
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Typical Flat Roof Mounted PV Solar
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Milestones
• Sept 15th - Preliminary Reviews & Designs
• Sept 30th - Request for Proposals Issued
• Oct 15th
- Vendor/Developer Site Visits
• Oct 29th - Vendor/Developer Proposals Due
• Nov 15th - PPS Selects Vendor/Developer
• Nov 30th – Power Purchase & Facility Lease Contracts
Ready for School Committee Approval
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PPS Project Steps
•
Note: Approval of School Committee to Proceed.
•
Preliminary review and design of solar panel mounting system.
•
Preliminary review of electrical interconnection and metering.
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Issue request for proposals to qualified PV System developers.
•
Negotiate Power Purchase Agreements and Facility Leases.
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Note: School Committee Approval of Power Purchase Agreement & Facility Leases.
•
Local building permits awarded & Interconnection Agreement signed.
•
Financial closing, PPA and Leases signed, start of construction.
•
Mechanical/Electrical construction completed – commercial operations start.
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