Large-Scale Renewable Energy Guide
description
Transcript of Large-Scale Renewable Energy Guide
![Page 1: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/1.jpg)
Large-Scale Renewable Energy GuideBoyan Kovacic and Anne Crawley
![Page 2: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/2.jpg)
2
Large-scale RE Guide
Large-scale RE Guide: Developing Renewable Energy Projects Larger than 10 MWs at Federal Facilities
Introduction and OverviewFor EPA RE-Powering AmericaAugust 8, 2013
Federal Energy Management ProgramOffice of Energy Efficiency and Renewable EnergyU.S. Department of Energy
![Page 3: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/3.jpg)
3
Federal Energy Management Program
FEMP works with key individuals to accomplish energy change within organizations by bringing
expertise from all levels of project and policy implementation to enable Federal Agencies to
meet energy related goals and to provide energy leadership to the country.
![Page 4: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/4.jpg)
4
FEMP Renewable Energy
• Works to increase the proportion of renewable energy in the Federal government’s energy mix.
• The program does this by providing– Web-based Knowledge and Tools– Direct Project Technical Assistance– Interagency Coordination– Renewable Energy Guidance and Reporting Requirements
• Technical Assistance supports– Distributed-scale RE projects (smaller than 10 MWs)– Large-scale RE projects (larger than 10 MWs)– Renewables in green building construction or major renovations
![Page 5: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/5.jpg)
5
A Common Process
The Guide shows a common process for large RE projects, in spite of different terms, from three key perspectives: Developer, Federal agency, and Financier.
![Page 6: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/6.jpg)
6
Federal Market for Large-Scale RE Projects
• Federal goals:– 7.5% of total electricity must come
from renewable electricity by 2013 and beyond
– 20% consumption of renewable electricity by 2020
– 28% reduction in greenhouse gas emissions by 2020
• DOD goal: produce 3 GWs of renewables by 2025
![Page 7: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/7.jpg)
7
Use of the Guide• DOE– FEMP is applying the Guide in its implementation support to the
DOE Pantex 11.5 MW ESPC wind farm• Army– Energy Initiatives Task Force has adapted much of the process for
Army specific practice. The Guide is a companion document to the EITF process and internal Army guidance.
– Committed to partnering with FEMP to meet 1 GW goal.– EITF supporting Ft. Irwin (15 MW PV), Ft. Detrick (15 MW PV), Ft.
Drum (28 MW Biomass), and Ft. Bliss (20 MW PV) projects• Navy
– Incorporated many elements of the Guide into its project development process
– Looking for FEMP assistance to fine tune its process
![Page 8: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/8.jpg)
8
Key Strategic Issue: Competitive Projects
• Attracting private investment to the Federal sector is essential to accomplish RE project goals.
• Federal Project opportunities must compete within competitive capital markets for: (1) project development investment and
(2) project execution capital investment.
![Page 9: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/9.jpg)
9
Introduction
The Guide provides a general resource that• develops Federal employee and private sector
awareness and understanding of each other’s operating environment, goals, language, and process.
• creates a methodology to: – build strong business cases– define and mitigate risks– establish good project characteristics
• so that the private sector will:– respond to the Federal competitive process– invest in and develop the projects.
![Page 10: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/10.jpg)
10
A Common Goal
Federal agencies and private developers both want to deploy significant amounts of large-scale renewable energy projects on
Federal lands using private financing.
![Page 11: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/11.jpg)
11
A Common Process and Understanding
The Guide shows a similar process in spite of differences in language and terms from three key perspectives: Federal agency, Developer, and Financier.
![Page 12: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/12.jpg)
12
A difference of perspective: Authorities
We can do anything that is not prohibited
by law.
Being a government of prescribed
powers, we can only do that which is
authorized by law.
Government Lawyer advising Federal agencyPrivate Lawyer
advising Developer
![Page 13: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/13.jpg)
13
A Process that Acknowledges Risk
• Risk is an important driver of project development.• The Guide acknowledges risk; a framework and process for
managing projects in a risk environment is introduced.
![Page 14: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/14.jpg)
14
Project Development
Project Fundamentals
Project Development Framework
![Page 15: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/15.jpg)
15
Project Fundamentals
![Page 16: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/16.jpg)
16
Project Development Framework
![Page 17: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/17.jpg)
Pre-
Dev
elop
men
t
Pre-
Dev
elop
men
t
Dev
elop
men
t
Dev
elop
men
t
Dev
elop
men
t
Dev
elop
men
t
Cons
truc
tion
Cons
truc
tion
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
Ope
ratio
n
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
DeveloperTax Equity InvestorLender
Project Development
Construction Operations
Years
Development Costs
Capital Investment
Cash Flows and Tax Benefits
Cash Flows in Time - Illustration
![Page 18: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/18.jpg)
18
A common reliable, repeatable process
Common understanding of important project
characteristics
Consistency >> lower risk >> attractive projectsIterative disciplined process for investing
Identifiable stages
Government leads investment to ID
good projectsSolicitation and
developer selection
Developer completes and
operates project
![Page 19: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/19.jpg)
19
Guide Structure
Section I: Language and termsSection II: A Reliable Repeatable Development Process
– The Commercial process– Project Fundamentals– Project Development Framework
Section III: Application of Project Development by a Federal Agency
– The Federal Process
Appendices
![Page 20: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/20.jpg)
20
Detail in Appendices
Appendix A. Portfolio ApproachAppendix B. Project Development Framework CategoriesAppendix C. Overview of Electricity Markets and Key TermsAppendix D. Commercial Project FinancingAppendix E. 10-Step Project Development Framework ApproachAppendix F. Project Pro Forma ExampleAppendix G. Energy Initiatives Task Force Project AssessmentAppendix H. Project Validation Workbook DraftAppendix I. Responses to Comments
![Page 21: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/21.jpg)
21
Federal Agency Key Points
• Federal Agencies need private capital for large-scale renewables projects.
• Risk is critical for capital.• Agencies can reduce project risk by
using the process and frameworks in the Guide:– Do early investment in market analysis,
predevelopment– Use a consistent approach.
• The Guide helps Agencies understand the private sector process.
![Page 22: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/22.jpg)
22
Private Developer Key Points
• There is a large Federal market for large-scale renewable projects.
• The Guide helps Agencies follow key methodical steps that: – developers understand– reduce project risk– make projects attractive to private investors.
• The Guide helps the Private Sector understand the Federal Agency process.
![Page 23: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/23.jpg)
23
Utility Key Points
• Federal agencies are committed to hosting large-scale renewable energy projects.
• Utilities will play a key role as potential sole or partial off-takers and as transmission partners.
• Agencies need good relationships with their utilities to facilitate interconnection and avoid curtailment.
![Page 24: Large-Scale Renewable Energy Guide](https://reader035.fdocuments.in/reader035/viewer/2022062814/5681688a550346895ddf08a1/html5/thumbnails/24.jpg)
24
Thank You and Feedback Welcomed
Boyan [email protected]
Anne [email protected]
http://www1.eere.energy.gov/femp/technologies/large-scalereguide.html