Department of Water and Power City of Los Angeles

California State Lands Commission Owens Lake Demonstration Project

Yamen Nanne

Solar Energy Development

June 2nd, 2010

Presentation Outline

LADWP Renewables Overview

Project Background & Drivers

Project Development Review & Status

Solar Technologies Assessment

Wind Tunnel Testing

Geotechnical affects on foundations

Revised Solar Demonstration Project Structure

Feedback & Recommendations on Next Steps

2

33

Los Angeles Department of Water Power (LADWP) Env / Energy Policies

LADWP & Green LA Greenhouse Gas (GHG) Reduction Goals:

o Reduce GHG emissions to 20% below 1990 levels by 2012 and to 35% below 1990 levels by 2030.

o Deliver coal-free energy to customers by 2020.

o Compliance with other GHG reduction legislation such as AB32, SB1368, etc.

Renewable Portfolio Standard (RPS):

o Energy sold to LADWP customers include 20% renewable resource by 2010 and 35% by 2020.

Integrated Resource Plan:

o LADWP plans to assure adequate resources to meet customer energy needs reliably and economically.

Incorporates strategies to meet GHG, RPS goals, and integration requirements.

o Energy Cost Adjustment Factor (ECAF)

o The ECAF authorizes the LADWP to recover their costs due to the fluctuating costs of renewable sources of power, fuel/natural gas, and escalating costs of third party provided purchased power.

LADWP Renewables Mix

4

2009 Renewable Power Content 2020 Renewable Power Content

14% OF TOTAL LADWP ENERGY CONSUMPTION 35% OF TOTAL LADWP ENERGY CONSUMPTION

LADWP Solar Program

5

Existing Programs Brief Description Utility Built LADWP will install utility-scale solar projects using local labor on

City owned land & facilities.

Solar Incentive Program (SB1) Encourage ratepayers to install solar systems to supplement their own utility purchases.

Programs Under Devlopment Brief Description

Large Scale Power Purchase Agreements (PPA)

Long-term PPAs with solar developers, including an option for LADWP to own the project.

Feed-In-Tariff (FIT) Allows LADWP customers & solar power providers to sell energy to LADWP (Distribution grid connected).

Sunshares (Community Projects)

Enables ratepayers to participate in community solar energy development

Solar LA Program

66

Solar Demonstration Project Background

LADWP Water System has dust mitigation commitments at Owens Dry Lake (ODL)

Power System has RPS goals of 20% by 2010 & 35% by 2020

July 2009, LADWP proposed concept of solar as a means of non-water based dust mitigation

August 2009, GB established criteria for using solar as a Best Available Control Measure (BACM)

Sept – Dec 2009 LADWP conducted extensive wind tunnel testing for feasibility of solar

Wind model configurations showed that solar in combination with other non-water based control measures can reach the 99% compliance threshold

December 2009 - GB agreed to allow LADWP to conduct a solar demonstration project (Demo)

Initially LADWP filed a Notice of Exemption (NOE) request for a 616 acre

LADWP Water System submitted a lease application for 80 acres

Canceled NOE and initiated Negative Declaration (ND)

Power System Consultants conducted an feasibility assessment based on Phase 7 Geotechnical Data

Demonstration Project Drivers

Provide a field verification as requested by GBUAPCD to validate the use of solar integrated with other mitigation mechanisms as a BACM

Substantial Long term water savings for LA & the State of California

GHG reduction & Air Quality Improvement

Economic development & job creation

Help DWP meet its renewable energy program using its existing transmission

Validate the feasibility of doing solar on the Lake

– Tackle Geotechnical / Soil Conditions

– System / Construction costs

– Operation & Maintenance costs

– Provide an innovative case study for future projects

7

8

LADWP Solar Project Implementation Process

Site Assessment

Technology Assessment

Environmental Review

Preliminary Cost / Feasibility

Study

Preliminary Design

Environmental Compliance

Prepare Detailed

Design Bid

Award Bid & Procure Material

Construction

9

Cost of Renewable Power

10

Levelized Cost of Energy (LCOE) by Resource

0

0 50 75 100 150 200 250 300 350 400Levelized Cost ($/MWh)

Renewables

Conventional

$87 - 196

$129 - 206

$57 - 113

$225 - 342

$74 - 102

Gas Peaking

Gas CombinedCycle

Wind

Solar Thermal

Solar PV

$/MWh: 2009 - 2012

Prices include federal incentives Source: Lazard Capital Markets 3/18/2009

USA Solar Resource

11

Owens Lake

Very High Solar Resource

Average Solar resource ~ above 7.5 kWh / m2 /day

Solar resource x solar cell efficiency x area of panel = energy output per day (kWh)

Utilize existing transmission lines and corridors

Utilize previously disturbed land

Weather data shows 89% sunny days

Per existing weather station

Strategic location within CA

12

Why Solar at Owens Lake

Solar Technology 1 – Flat Plate Photovoltaic (PV)

13

Solar Technology 2 – Tracking PV

14

Solar Technology 3 – Membrane Thin Film PV

Solar cells on a floating cover

(Courtesy Dow Geomembrane Systems).

15

One pod, two panels of solar cells

Solar Technology 4 - Floatovoltaics

16

Emerging Technology

17

Commercial glass & steel Greenhouse

700F Working Fluid

P4P Suspended

Preferred Technology – Standard PV

Proven Commercially Technology

Minimal water use

Lowest cost & maintenance

Modular constructability

LADWP had existing RFP for Design & Procurement

Fixed panels most likely to provide most optimal ground coverage

18

19

Wind Tunnel Testing Project Team

GBUAPCD - Wind Reduction Criterion

Historically, Best Available Control Measures (BACM) required to achieve 99 percent reduction in dust emissions on the Owens playa (SIP, Chapter 8, Attachment B, Item 3(c)iii).

For solar, measure of success defined by the District as complete sheltering of 99 percent or more of the area within the solar panel array.

Previous Control measures required 75% coverage to achieve 99% sheltering

The design wind speed defined by District is 22.4 m/s (50 mph) at 10 m above ground. Complete sheltering occurs when the wind speed at 0.254 m above ground is 4.5 m/s or less.

Complete sheltering occurs when the wind speed at a height of 0.254 m (10 inches) above ground is reduced to 20 percent or less of the wind speed at 10 m.

20

1 MW PV Block

642 ft x 538 ft

7.9 Acres

Solar Covering 6.9 Acres

Major Components

– PV Modules

– Inverter

– Foundations

– Racking

– Electrical Wiring

– Fencing

21

22

Wind Tunnel Test Configuration Summary

Parameters: Panel Tilt, Panel Height, Row Spacing, Fencing, Wind Deflector (fairings)

23

CONFIG Inte

rior R

ows

Exterio

r Row

s

Inte

rior T

ilt

Exterio

r Tilt

Height

Inte

rior R

ow S

pacin

g

Exterio

r Row

Spa

cing

Perim

eter

Fen

ce

Corne

ring

Fence

Wind

Def

lecto

r

A21 5 4 30 20 3' 12' 12' 8' porous backA22 5 4 30 20 3' 12' 12' porous backA23 5 4 30 20 3' 12' 12' 8' NoA24 5 30 3' 12' 8' NoA25 5 4 30 20 3' 12' 12' 8' porous backA26 5 4 30 20 3' 12' 12' 8' porous backC21 9 30 3' 12' 8' NoC22 9 30 3' 12' 8' NoD (D21 & D22) 7 30 3' Long Checker 8' NoE22 5 4 30 20 1' 12' 12' NoE23 5 4 30 20 1' 12' 12' 8' NoF (F21 & F22) 9 4 30 20 1' 16', Checker 12' 12' 10' solid toeG (G21 & G22) 9 4 30 20 1' 16', Checker 12' 12' 10' solid toe, solid back and sides in

placesHnorth (H21 & H24) 15 4 30 20 1' 16', Checker 12' 12' 10' solid toeHsouth (H23 & H22) 15 4 30 20 1' 16', Checker 12' 12' 10' solid toeI21 9 4 30 20 1' 16', Checker 12' 12' 10' solid toe, various additional fencingI (I22 & I23) 9 4 30 20 1' 16', Checker 12' 12' 10' solid toe, interior fencingJ21 7 5 3' 3' 12' NoJ22 7 5 3' 3' 12' solid toeJ23 7 5 3' 3' 12' solid toe, 3' surrounding fenceK21 7 5 3' 6' 12' solid toeK22 7 5 3' 6' 6' solid toeK23 7 5 3' 6' 6' solid toe, 3' surrounding fenceK24 7 5 3' 6' 12' solid toe, 3' surrounding fence

Wind Tunnel Test Configuration Summary

24

K21 and K24

25

Contour Plots Wind from 180O

WindDirection

26

Contour PlotsWind from 315O

WindDirection

27

Best and Worst K24 with Gravel Rows

Alternate Interpolation (biased low)

Original Interpolation (biased high)

28

Lease Application Background

• LADWP Submitted a Lease Application Feb 24, 2010

• 80 Acres of Land for a Solar

• Within Area T1A-4 of Phase 7

• Solar augmented w/ gravel

• Solar within earthen berms

• Emerging technologies

• On March 22nd responded w/ a letter to LADWP requesting further details on the specifics of what the demo project will entail

• Since then:

• Continued economic and geotechnical analysis of best solutions to implement for the Demo

Soil Conditions at T1A-4

Based on Phase 7 Geotechnical Data

– Clayey lacustrine deposits

– Severely corrosive chloride & sulfate

– Shallow ground water

– Substantial differential settlement

– Required concrete ballasts

Ballast foundations & racking

– 8x3x1 ft ballast

– Significant cost increase

Need for additional more specific geotechnical investigation

29

Scope of Geotechnical Study

Submit GeoTech Permit

Investigate 20 acres on T37-1

Investigate 20 acres on Area 1 of Phase 8

Foundation design

– Bearing capacity of soil

– Experimental foundations

• Piles, Hemispherical, Rect / Square

Subgrade Preparation

– Blending in material (lime, cement)

Loading scenarios

– Axial, lateral, & combined

– Using a backhoe & spring scale

30

New Targeted Areas for Solar Demo

31

Interconnection Options

Area T37-1

– Located within ½ mile of existing 34.5 kV

New Study Area 1

– Located very near existing 4.8 kV

32

Revised Demo Structure

Obtain GeoTech Permit

Conduct GeoTechnical Study

Amend Lease application pending Geotech Analysis

– Create flexibility

– Phase I

• ½ MW of Solar PV w/ Gravel

• 3 – 5 acres depending on technology

– Phase II

• Other / emerging technologies

More engagement w/ External Stakeholders

33

External Stakeholders

34 34

California State Lands CommissionEnvironment

al & Cultural Grps

CARBRWQCB

Regional UtilitiesLocal

Community & Local

Agencies

Owens Lake Master

Planning Committee

Ranchers

GBUAPCD

Remaining Milestones

June 9th Owens Lake Master Planning Committee Presentation

GeoTech Permit

GeoTechnical Investigation

Revise Lease / Project Description

Draft Neg Dec Completed

Board approval of final CEQA document

Engineer & procure system

Construction

COD : Target of July 1st, 2011 but no later than Oct 1st, 2011

– Wind season is October – June, however Demo can be validated if significant wind events occur

Monitoring & Validation Period

35

Feedback & Recommendations

36