6 Clean Energy for Colleges - Community College Facility ... · over 40 MW at over 100 sites. REAP...

10/30/2017

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Clean Energy for Colleges: Planning for Success

State Center Community College District

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• Overview of solar and energy storage

• Overview of procurement strategies

• Top things to be aware of right now

• Tips to maximize project success

Agenda

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Presenters Christine Miktarian


Vice Chancellor; Operations/Information Systems

Shannon Robertson


Construction Services Manager

Brian Taylor

ForeFront Power; Sales Manager

Kevin Flanagan

SPURR; Lead admin. for REAP Program


Fresno City College

Reedley College

Clovis Community College

Madera Community College Center

Oakhurst Community College (Outreach) Center

Career & Technology Center (CTC)

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State Center Community College District (SCCCD) serves nearly 60,000 students and covers 5,500 square miles in Fresno, Madera, Kings and Tulare counties. SCCCD is made up of three colleges and three educational centers.

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7.3 MW Solar Installations

$18 Million in Energy Savings

50% Renewable Energy Offset

EV Chargers at all Sites182,000 Acres of Forest

SavedSolar Curriculum &

Online System Monitoring

State Center CCDSustainability Leader for Colleges in California

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Ex: Madera Community College Center• 83% kWh Energy Offset

• 21% Year 1 $ Savings

• $2.5 Million 20 Year Savings

• Shaded Parking

• LED Lighting

• EV Charging Stations

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• Best in Class Development Group

• Renewable Project Financing Leader

• California Public Sector Leader

• SPURR REAP RFP Winner

• ‘A’ Rated Parent Company: Mitsui & Co

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ForeFront Power

ConsultationConsultation

Utility Bill Analysis

Site Visit

Project Costing

Storage Analytics

FinanceFinance

Existing California Fund

Experienced Finance Team

Design & Engineering

Design & Engineering

Experienced Project

Developers

Design Engineering

Team

Development Engineering

Team

Interconnection Specialist

ConstructionConstruction

Local EPC Relationships

Scale

MaintenanceMaintenance

Asset Management

O&M

DAS & Monitoring

Development Experts

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SPURR: School Project for Utility Rate Reduction

Joint Powers Authority (JPA) formed in 1989 by California public school

districts with 240 public agency members.

Aggregates purchasing power and expertise

Governed by Board of public agency administrators.

No cost to join SPURR; all programs

self-funded through transparent

administrative fee.

Renewable Energy Aggregated Procurement (REAP) Program9

Buying Together. Buying Better.

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Agenda

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• Solar Reduces KWH Consumption• Storage Shaves Demand Spikes & Firms Peak Reduction

Madera Center – Solar & StorageSimulated day from historical usage: October 17, 2016

Original Load -> Solar Only Load with Solar + Storage

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Energy Storage Strategy

Demand Charge Savings

Intelligently discharge the battery to shave demand charges.

Energy Arbitrage

Buy Low / Sell High

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Carports Up Close

Shade

LED Light

Security

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Agenda

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What is the REAP Program?

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Aggregated solar buying program that leverages the collective purchasing power of SPURR’s large membership to:

1. Streamline the solar buying process for CA public schools Save time

2. Drive down solar project pricing for CA public schools Save money

3. Improve project terms for CA public schools Reduce risk

Through a statewide competitive RFP, REAP secures pre-negotiated “piggybackable” solar project pricing and terms for SPURR members and eligible non-members.

REAP Program has been used by many

public agencies across the state to procure

over 40 MW at over 100 sites.

REAP Program RFP Process

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First REAP Program RFP completed in 2014; second RFP completed October 2017.

RFP solicits pricing and terms for many different solar/storage project types with very specific project includes, excludes, and assumptions.

Vendor proposal: company experience, system designs, component specifications, O/M packages, contract documents, and firm pricing.

Winning vendor’s pricing and terms

memorialized in a master contract:

All docs publicly available.

Transparent piggybackable offer.

Common-sense price adjustment

mechanism to deal with site-specific

conditions (tree removal for example)

ForeFront Power was winning vendor.

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Low Pricing: Statewide RFP

Accelerated Procurement: Capitalize on TOU 1.0 Grandfathering

Trusted Partnership

Proven track record of REAP Program

Financially Strong Provider: ForeFront Power

SCCCD Relied On SPURR

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Sample Solar Development Timing

2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4

Feasibility Analysis / Contract Negotiations / Execution (December)

Site Diligence – Title, Geotech, Survey (January / February)

Design, Engineering, PG&E Study, & DSA Permitting (February / March)

Procurement (April - May)

Phased Canopy Construction (Jun-Aug)

Balance of System (July - Oct)

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• No upfront cost / No Bonding

• Year 1 Savings

• 0% Escalator for 20 Years

• Utility Rate Hedge

• Monetize 30% Tax Credit

• Aligned Partnership

• Free Operations & Maintenance

• Guaranteed Performance

Power Purchase Agreement

$-

$20

$40

$60

$80

$100

Old Utility

BillPPA

Payment

DistrictSavings

NewUtility

BillBefore Solar After Solar

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• Use of Bond / Prop 39 Funds

• Year 1 Savings

• No Tax Credits

• District Responsibility: Operations & Maintenance

• +15 Year Payback

• Operating Expense -> CapEx

Design / Build

NewPG&E

Bill $-

$20

$40

$60

$80

$100

Before Solar After Solar

Old Utility

BillPPA

Paymen

DistrictSavings

New Utility

Bill

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• PPA– $0 Cash Outlay– Federal Tax Credits– Maximize Savings– Free O&M

• Rent to Own:– Investment in Y6– Federal Tax Credits– Optionality

• Cash Purchase– Investment In Y0– 10-15 Year Payback– No Federal Tax Credit

Procurement Methods & Savings

Assumes 3% Annual Utility Rate Increase, 3.0% Coupon, 20 Year Debt

Sample Site – 1MW

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Utility Fixed Charges



Utility Demand Bill

Utility Demand Bill

Utility Demand Bill

Utility Energy Bill

[SERIES NAME]

Utility Energy Bill

Solar PPA Bill

Solar PPA Bill

Storage Bill

SavingsSavings

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

Historic Utility Bill Utility Bill with Solar Utility Bill with Solar& Storage

• No Bonding / No Upfront Cost

• Save in Year 1

• Fixed Annual Payment

• Performance Guarantee

• Utility Hedge

• Aligned Partnership

• Free Operations and Maintenance

Solar + Storage

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Agenda

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12AM 1AM 2AM 3AM 4AM 5AM 6AM 7AM 8AM 9AM 10AM 11AM 12PM 1PM 2PM 3PM 4PM 5PM 6PM 7PM 8PM 9PM 10PM 11PM 12AM

12AM 1AM 2AM 3AM 4AM 5AM 6AM 7AM 8AM 9AM 10AM 11AM 12PM 1PM 2PM 3PM 4PM 5PM 6PM 7PM 8PM 9PM 10PM 11PM 12AM

$

$

TOU Changes

Peak

Peak

Part Peak

Part Peak

Part Peak

Part Peak

Off Peak

Off Peak

Off Peak

TOU 1.0Summer: May - Oct

TOU 2.0 ProposedSummer: June - Sept

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• Peak TOU Period

– Current 12-6PM

– PG&E Proposed: 5-10PM

• CPUC Decision – December 2017

• “TOU 1.0 Grandfathering Window” Re-Opened

Impact of TOU 2.0

$445,249

$103,508 $160,054

$230,429$230,430

$111,312 $54,766

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Historic Utility Bill TOU 1.0 TOU 2.0

Total Year 1 Savings - Sample 1MW

Utility Bill Solar Bill Savings

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TOU 1.0 Grandfathering*

• December 25, 2017 Deadline

Interconnection Applications

• Preserve For 10 Years• No Construction Completion Deadline

TOU 1.0 Grandfathering

• 50%-100% Increase in Solar Savings

Increase Savings

*Approved by CPUC on October 26, 2017

10/30/2017

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Import Tariffs on Solar Panels?

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Executive branch of the federal gov’t considering tariffs on allimported solar panels.

Multiple tariff levels have been discussed.

Worst case scenario: cost of solar panels could effectively double.

Tariff decision is ultimately thePresident’s to make; decision could be made in January 2018.

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Agenda

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SCCCD Solar: Challenges & Successes

• Engage StakeholdersCommunity Support

• Long Term ProjectsMaster Planning

• PhasingParking Lot

• Known UnknownsInterconnection Upgrades

• Community ApproachEnergize Fresno

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Contact Information

• Christine [email protected]

• Shannon [email protected]

• Kevin [email protected]

• Brian [email protected]

Questions?

6 Clean Energy for Colleges - Community College Facility ... · over 40 MW at over 100 sites. REAP...

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Transcript of 6 Clean Energy for Colleges - Community College Facility ... · over 40 MW at over 100 sites. REAP...