Rhode Island Convention Center • Providence, Rhode Island
Track 13, Session 1 Renewable Energy Feasibility and Tools to Identify
Cost-Effective Projects
Energy Exchange: Federal Sustainability for the Next Decade 2
Session Panelists
Rachel Shepherd FEMP, Renewable Energy Program Manager [email protected] 202-586-9209
Andy Walker NREL, Principal Engineer [email protected] 303-384-7531
Shawn Norton NPS, Branch Chief, Sustainable Operations and Climate Change [email protected] 202-354-1835
Energy Exchange: Federal Sustainability for the Next Decade 3
Agenda
I. FEMP Renewable Energy Tools and Resources
II. Geospatial Map Screening Tool
III. Financial Scenario Models
IV. National Park Service REopt Screening Process
V. Questions and Answers
Energy Exchange: Federal Sustainability for the Next Decade 4
Agenda
I. FEMP Renewable Energy Tools and Resources
II. GIS Map Screening Tool
III. Financial Scenario Models
IV. National Park Service REopt Screening Process
V. Questions and Answers
Energy Exchange: Federal Sustainability for the Next Decade 5
FEMP Assistance
Project and Procurement
Assistance
Guidance and Reporting
Tools and Training
Energy Exchange: Federal Sustainability for the Next Decade 6
Project Technical Assistance Services
Planning Prescreening
Screening (single-site and multi-site)
Feasibility study
Implementation Distributed generation/grid integration
Request for proposals assistance
Contract assistance
Design assistance
• Project
• Integration in Building construction
Construction assistance
Validation Acceptance testing and commissioning
Performance period (O&M and M&V)
Energy Exchange: Federal Sustainability for the Next Decade
FEMP RE Tools and Resources
– RE Cost and Performance Matrix • http://www.nrel.gov/analysis/tech_cost_dg.html
• Initial Cost, O&M Cost, Useful Life; LCOE Calculator
– GIS Tools and Data • http://maps.nrel.gov/femp
• Resources, Topography, Environmental Concerns, boundaries
• LCC Analysis for PV, Wind, Solar Water Heating, and Solar Vent Air Preheat
– REopt Development • http://www.nrel.gov/tech_deployment/tools_reopt.html
• Optimizes a portfolio of RE projects based on LCC
– RE Website • http://www.energy.gov/eere/femp/federal-renewable-energy-projects-and-technologies
• Publications, data, technical assistance portal
– RE Training • http://www.energy.gov/eere/femp/federal-energy-management-program-training
• Project Development, Technology, O&M
7
Energy Exchange: Federal Sustainability for the Next Decade
Cost and Performance Matrix Initial Cost for Renewable Energy Technologies
http://www.nrel.gov/analysis/tech_cost_dg.html
Energy Exchange: Federal Sustainability for the Next Decade
http://www.nrel.gov/analysis/tech_cost_om_dg.html
Cost and Performance Matrix Initial Cost for Renewable Energy Technologies
Energy Exchange: Federal Sustainability for the Next Decade
FEMP GIS Tools and Data
Energy Exchange: Federal Sustainability for the Next Decade
REOpt Planning Tool
• Planning tool to evaluate RE, EE, microgrid, and operational energy opportunities
• Recommends a mix of technologies and an operating strategy that meets client goals at minimum lifecycle cost
– Considers interactions between multiple technologies – Estimates costs and energy savings
• Draws on site data, NREL GIS resource data, DSIRE incentive database, and RE technology info • Has been used to assess opportunities at 1000+ sites
• Technologies currently modeled: – PV – Wind – Solar hot water – Solar vent preheat – Biomass – Waste to energy – Landfill gas – Diesel and natural gas generators – Battery storage
• Robust and adaptable to meet client goals
Energy Exchange: Federal Sustainability for the Next Decade
Certified for Continuing Education Credits by:
• Distributed-Scale Renewable Energy Projects: From Planning to Project Closeout • Federal On-Site Renewable Power Purchase Agreements • FEMP Large-Scale Renewable Energy Guide • Introduction to Alternative Financing for Energy Efficiency and Renewable Technologies • O&M Best Practices for Small-Scale PV Systems • Procuring Solar Energy for Federal Facilities: Practical Guidance • Renewable Energy: First Thursday Seminar • Renewable Energy Technology Applications: Biomass Technologies • Renewable Energy Technology Applications: Geothermal Energy Technologies • Renewable Energy Technology Applications: Hydropower and Ocean Energy Technologies • Renewable Energy Technology Applications: Integration of Renewable Energy Systems • Renewable Energy Technology Applications: Photovoltaics and Daylighting Technology • Renewable Energy Technology Applications: Solar Thermal and Concentrating Solar Power
Technology • Renewable Energy Technology Applications: Wind Energy Technology • Renewable Power Purchases and Renewable Energy Certificates • Selecting, Implementing, and Funding Photovoltaic Systems in Federal Facilities • Strategic Planning for Renewable Energy Deployment: REopt
12
FEMP RE Trainings
Energy Exchange: Federal Sustainability for the Next Decade
FEMP RE Website
Energy Exchange: Federal Sustainability for the Next Decade 14
Agenda
I. FEMP Renewable Energy Tools and Resources
II. GIS Map Screening Tool
III. Financial Scenario Models
IV. National Park Service REopt Screening Process
V. Questions and Answers
Energy Exchange: Federal Sustainability for the Next Decade 15
FEMP RE Geospatial Tool
Energy Exchange: Federal Sustainability for the Next Decade
http://maps.nrel.gov/femp • Coverage: Continental United States, Alaska and Hawaii
• High-level annualized economic calculation:
– Economic Results: Savings to Investment Ratio; Payback Period; Levelized Cost of Energy;
– Discount rates and escalation rates compliant with 10CFR436
– with and without potential savings from available renewable energy incentives at the state and federal level.
• Allows users to:
– access the results of energy delivery and life-cycle cost calculations,
– change assumptions to look in more detail at their areas of interest,
– and overlay other layers that may be relevant to planning renewable energy projects, such as
• renewable energy resource data
• Land ownership
• Environmentally Sensitive Areas
• Topographical relief
FEMP RE Geospatial Map Tool
Energy Exchange: Federal Sustainability for the Next Decade
Top down Executive at Headquarters can make a map of the whole US showing locations of potentially cost-effective projects Bottom up Energy Manager at a facility can use “point-location” tool to generate detailed results for a specific site
Allows both top-down and bottom-up analysis
Energy Exchange: Federal Sustainability for the Next Decade
The tool allows custom analysis, and results for multiple technologies to be summarized for quick comparison.
Assumptions and results are summarized in a report that can be saved or printed.
Point location tool
Energy Exchange: Federal Sustainability for the Next Decade
• Photovoltaics
• Wind Energy
• Solar Water Heating
• Solar Ventilation Air Preheating
Economic Analysis for four technologies:
Energy Exchange: Federal Sustainability for the Next Decade
• cinitial= per-unit cost per kW of rated capacity ($/kW)
• Default values from FEMP Cost and Performance Matrix [http://www.nrel.gov/analysis/tech_lcoe_re_cost_est.html] For example, Photovoltaics 1 to 10 MW in size $2,035/kW +/- $694/kWh
• User can modify initial cost to account for any rebates and then by
the Federal tax credit. • Cinitial, modified= (cinitial-cinitial rebate) *(1-ftaxcredit) • Where • Cinitial, modified = initial cost of PV or wind system after rebate and tax
credit • cinitial rebate = unit rebate per kW of rated capacity ($/kW), if any • ftaxcredit = tax credit as fraction of initial cost (30% currently)
Initial Cost
Energy Exchange: Federal Sustainability for the Next Decade
• cOM= per unit annual O&M cost ($/kW/year)
• Default values from FEMP Cost and Performance Matrix [http://www.nrel.gov/analysis/tech_lcoe_re_cost_est.html]
For example, Photovoltaics 1 to 10 MW in size $16/kW/year +/- $9/kWh/year
Operation and Maintenance Cost
Energy Exchange: Federal Sustainability for the Next Decade
• Annual energy delivery of the RE systems is based on the resource information as reported in the “capacity factor,” or “CF”
• CF is like percent of time system delivers its rated capacity
• Annual Energy Delivery (kWh/year) per kW of installed RE = CF*8760 (hrs/year)
• Capacity factor inclusive of balance-of-system losses
(AC capacity factor)
Annual Energy Delivery
Energy Exchange: Federal Sustainability for the Next Decade
• Annual energy cost savings is the reduced expense of purchasing
retail power; • cpower=retail utility rate ($/kWh)
Annual average commercial electricity cost extracted from ABB Energy Velocity Suite and EIA State Electricity data tables for each utility service territory
• User can modify this value to account for revenue from sale of
power at different rate; and to account for production-based incentives
• c= cpower + cincentive
• Where cincentive = production incentive ($/kWh)
Annual Energy Cost Savings
Energy Exchange: Federal Sustainability for the Next Decade
Future costs (O&M) and energy cost savings are “escalated” according to an inflation rate, i, and then “discounted” to their present value Present Worth Factor (PWF) PWF=(1+i)/(d-i)*(1-((1+i)/(1+d))^N) i=inflation rate, currently 0.1%/year d=discount rate , currently 3.0%/year
From Annual Supplement to Handbook 135 Energy Price Indices and Discount Factors for Life Cycle Cost Analysis- UPDATED ANNUALLY [http://energy.gov/eere/femp/building-life-cycle-cost-programs] Complies with 10CFR436 regulation
N=years of analysis period 25 years as per 10CFR436 for electrical/mechanical or for solar 40 years as per EISA. PWF (i=0.1%, d=3%, N=40 years) = 23.5 years in other words, a savings of $1/year for 40 years = $23.5 today
Present Worth Factor
Energy Exchange: Federal Sustainability for the Next Decade
Saving to Investment Ratio (SIR); Cost Effective if SIR>1
𝑺𝑰𝑹 =CF∗8760 hours/year∗cpower
∗PWF
( Cinitial+ COM∗PWF)
Simple Payback Period
𝑺𝑷𝑩 = Cinitial
(CF∗8760 hours/year)∗cpower ∗
PWF− COM∗PWF
Electricity Rate for SIR=1 (levelized cost of energy)
𝐜𝐩𝐨𝐰𝐞𝐫 = ( Cinitial + COM∗PWF)
CF∗(8760 hours/year)∗PWF
Economic Results
Energy Exchange: Federal Sustainability for the Next Decade
Map Algebra Example
PV SIR for 1 MW system =
X
2025 $/kW + (16 $/kW-yr * 23.504 yrs)
X 23.504 yrs
=
kWh $/kWh
SIR
Energy Exchange: Federal Sustainability for the Next Decade
System Cost= 2025 $/kW; O&M= 16 $/kW-yr; Present Worth Factor = 23.5
PV 1 MW System: Electricity Rate for SIR=1
Energy Exchange: Federal Sustainability for the Next Decade
Energy Production - PV: 10-km resolution for 49 states, satellite data from 1998 – 2009, produced by
Clean Power Resources; 40-km for Alaska, 7-yr period, based on satellite and ground data sources, produced by the Climatological Solar Radiation model; 86% de-rate factor
- SHW: Annual average 10km resolution solar resource data for a fixed flat plate system with tilt = latitude; 40% system efficiency
- SVP: Map of energy delivery by NREL including solar and heating requirements (heating degree days); 50 km grid
- Wind: 200m resolution gross capacity factor; 80 m hub height computed for 2015 Wind Vision update utilizing specific wind climate turbine power curves based on annual average wind speed and assuming 15% losses source data licensed from AWS Truepower
- (http://www.energy.gov/eere/wind/maps/wind-vision)
Annual average commercial electricity cost extracted from ABB Energy Velocity Suite and EIA State Electricity data tables Other variables have static values, independent of location.
Sources of Data
Energy Exchange: Federal Sustainability for the Next Decade
Other Renewable Energy Resources
29
Other Planning Data in the FEMP GIS Tool
Energy Exchange: Federal Sustainability for the Next Decade
Land Cover and Land Use Types
30
Other Planning Data in the FEMP GIS Tool
Energy Exchange: Federal Sustainability for the Next Decade
Areas involving Environmental Concerns
31
Other Planning Data in the FEMP GIS Tool
Energy Exchange: Federal Sustainability for the Next Decade
Land Ownership
32
Other Planning Data in the FEMP GIS Tool
Energy Exchange: Federal Sustainability for the Next Decade
Political and Administrative Boundaries
33
Other Planning Data in the FEMP GIS Tool
Energy Exchange: Federal Sustainability for the Next Decade
Selection of Base Map to display under the data
34
Other Planning Data in the FEMP GIS Tool
Energy Exchange: Federal Sustainability for the Next Decade 35
Agenda
I. FEMP Renewable Energy Tools and Resources
II. GIS Map Screening Tool
III. Financial Scenario Models
IV. National Park Service REopt Screening Process
V. Questions and Answers
Energy Exchange: Federal Sustainability for the Next Decade
• I’m not a lawyer and can’t offer legal advice.
• The economic parameters and financial structure presented here are illustrative examples and not meant to represent your situation or authorities available to your agency.
• Consult agency guidance and legal counsel for your specific situation.
36
Big Huge Disclaimer
Energy Exchange: Federal Sustainability for the Next Decade
FEMP/NIST Life Cycle Cost
• Standard Life Cycle Cost (LCC) methods and assumptions required by 10 CFR 436
• Available Downloads at http://energy.gov/eere/femp/building-life-cycle-cost-programs
• BLCC5 Program (BLCC 5.3-15 for Windows or Mac OS X).
– economic analyses by evaluating the relative cost effectiveness of alternatives; calculates comparative economic measures for alternative designs, including net savings, savings-to-investment ratio, adjusted internal rate of return, and years to payback.
– Escalates costs and Discounts costs to net present value based on current rates.
• Energy Escalation Rate Calculator (EERC 2.0-15 for Windows, Mac OS X, or Linux)
– computes an average annual escalation rate for a specified time period, based on the Energy Information Administration (EIA) energy price projections
• Handbook 135, Life Cycle Costing Manual for FEMP
– explains in detail the principles of life cycle cost analysis and integrates them with FEMP criteria.
• Annual Supplement to Handbook 135
– Energy Price Indices and Discount Factors for Life Cycle Cost Analysis- UPDATED ANNUALLY
Energy Exchange: Federal Sustainability for the Next Decade
A difference of perspective: Authorities
“We can do
anything that is not prohibited
by law.”
“Actually, being a government of
prescribed powers, we can only do that which is specifically authorized by law.”
Government Lawyer Private-sector
Lawyer
Energy Exchange: Federal Sustainability for the Next Decade
Authorities for On-Site Renewable Energy Procurement
Project Ownership Financing Method Authority or Pathway
Government Owned
Appropriations
ESPC 42 U.S.C. 8287
ESPC ENABLE (PV) 42 U.SC. 8287
UESC 42 U.S.C. 8256
Privately Owned
PPA
FAR Part 41/40 U.S.C. §501 FAR Part 12 10 U.S.C. 2922a (DOD Only) WAPA
ESPC (Title must transfer to Gov’t by end of contract)
ESPC ESA ESPC ENABLE
Utility Contract FAR Part 41/40 U.S.C. §501 EUL or other
Real Property Arrangement EUL or other
Energy Exchange: Federal Sustainability for the Next Decade
The financial scenarios considered here include:
• Business as usual: the scenario of not doing a renewable energy project and rather continuing to purchase electricity or fuels from the utility.
• Appropriations asset purchase: using an agency’s own funding, capital appropriations and/or operations budgets, to pay for a renewable energy project installation and operation.
• 10 year Power Purchase Agreement (PPA): An agency pays for delivered energy from a renewable energy system, often on a fixed or escalating $/kWh rate. The 10 year term is determined by the maximum contract term set by 40 USC §501 and regulated under Federal Acquisition Regulations (FAR) Part 41.
• “10 Plus 10” year Power Purchase Agreement: Same as above but a 20-year term is assumed based on a projected pair of back-to-back maximum contract terms set by 40 USC §501 and regulated under FAR Part 41.
• DoD 2922a Power Purchase Agreement: An agency pays for delivered energy from a renewable energy system, often on a fixed or escalating $/kWh rate. A 27-year term is assumed based on the lesser of 1) the 30-year maximum contract term set by 10 USC §2922a for DoD to contract for energy purchases and, 2) investment tax credit (ITC) and accelerated depreciation (MACRS) test for “service contract term as percent of asset life” factor that puts a limit at 27 years of the assumed 35 year asset life of the PV system.
• Utility Energy Service Contract (UESC): An agency enters into a limited-source contract with its serving utility for energy- and water-efficiency improvements and demand-reduction services, including renewables. FAR Part 41. 10 year term. Tax credits “normalized” over contract period.
• Energy Savings Performance Contract (ESPC): An agency pays an energy services company, usually monthly, for specified performance outcomes as verified by an annual audit (measurement and verification of savings). The payments are less than savings over a term of up to 25 years. Government takes title to equipment. Non-recourse financing.
• Energy Service Agreement in Energy Savings Performance Contract (ESPC);Same as ESPC but energy services only and title to the equipment resides with contractor so they can take ITC and MACRS.
Energy Exchange: Federal Sustainability for the Next Decade
For each financial scenario:
• Description
• Authority
– Statutes
– Federal Acquisition Regulations
– Dictates ownership structure, term (years), etc.
• Cash Flow Diagram
• Life Cycle Cost Spreadsheet Analysis
Energy Exchange: Federal Sustainability for the Next Decade
Spreadsheet Analysis: Inputs RE System Capacity (kW) 2500
Annual energy delivery (kWh/year) 3,500,000
Initial Cost of System $7,500,000
Loan Amount ($) $1,875,000
Federal Investment Tax Credit $2,250,000
Tax Depreciation Basis ($) $6,375,000
Annual Operation and Maintenance Cost ($/year) $40,000
Annual SREC Revenue ($/year) $525,000
Prevailing Utility Rate ($/kWh) $0.110
Years of Utility Cost Savings (years) 20.00
Federal Discount Rate (%/year) 3.00%
Electric Inflation Rate 0.10%
Equity Fraction 0.75
Equity Rate of Return (minimum) 7.50%
Debt Fraction 0.25
Debt Interest Rate 5.50%
Years of Loan 20.00
Federal Investment Tax Credit 0.30
Developer Income Tax Rate (%) 30.00%
State Sales Tax 5.00%
O&M Labor Inflation Rate 0.10%
Years of O&M Costs (years) 20.00
PV degredation Rate (%/year) 0.40%
SREC Production Incentive ($/kWH) $0.150
Years of SREC Credit 3.0
SREC inflation rate (%/year) 0.00%
PPA inflation rate 1.50%
PPA Term (years) 20
Consider a Federal Building with annual energy use of 5,000,000 kWh/year, that adds an RE system that costs $7,500,000 to install and delivers 3,500,000 kWh/year.
Energy Exchange: Federal Sustainability for the Next Decade
Federal Agency Utility ($) kWh
Cash Flow Diagram: Base Case; Business as Usual
Energy Exchange: Federal Sustainability for the Next Decade 44
Spreadsheet Analysis: Base Case
Year Utilty Cost ($/year)
0
1 $550,000
2 $550,550
3 $551,101
4 $551,652
5 $552,203
6 $552,756
7 $553,308
8 $553,862
9 $554,415
10 $554,970
11 $555,525
12 $556,080
13 $556,636
14 $557,193
15 $557,750
16 $558,308
17 $558,866
18 $559,425
19 $559,985
20 $560,545
Net Present Value $8,252,748
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
1 3 5 7 9 11 13 15 17 19 21
An
nu
al C
ash
Flo
w (
$/y
ear
)
Year
Utilty Cost($/year)
Energy Exchange: Federal Sustainability for the Next Decade
REC Sale
Federal Agency
($)
RECs
EPC Contractor Engineering,
Procurement,
Construction
Initial Cost($)
O&M Contractor
O&M Services
($)
Utility ($) kWh
Cash Flow Diagram: Appropriations
Energy Exchange: Federal Sustainability for the Next Decade
Year Capital
REC Production Incentive O&M Cost
Cost of Replacement RECs ($/year)
Utilty Cost ($/year)
0 $7,500,000
1 -$525,000 $40,000 $35,000 $165,000
2 -$525,000 $40,040 $35,000 $165,165
3 -$525,000 $40,080 $35,000 $165,330
4 $0 $40,120 $0 $165,495
5 $0 $40,160 $0 $165,661
6 $0 $40,200 $0 $165,827
7 $0 $40,241 $0 $165,992
8 $0 $40,281 $0 $166,158
9 $0 $40,321 $0 $166,325
10 $0 $40,361 $0 $166,491
11 $0 $40,402 $0 $166,657
12 $0 $40,442 $0 $166,824
13 $0 $40,483 $0 $166,991
14 $0 $40,523 $0 $167,158
15 $0 $40,564 $0 $167,325
16 $0 $40,604 $0 $167,492
17 $0 $40,645 $0 $167,660
18 $0 $40,685 $0 $167,828
19 $0 $40,726 $0 $167,995
20 $0 $40,767 $0 $168,163
46
Spreadsheet Analysis: Appropriations
-$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
1 5 9 13 17 21
An
nu
al C
ash
Flo
w (
$/y
ear
)
Year
Utilty Cost($/year)
Cost ofReplacementRECs ($/year)
O&M Cost
REC ProductionIncentive
Capital
Net Present Value $8,922,335
Energy Exchange: Federal Sustainability for the Next Decade
REC Sale
Federal Agency
Project Developer
kWh
Tax-Equity Investor
IRS
Depreciation,
Tax Credits
Income
tax ($)
Land Owner
($)
Easement
($)
RECs
kWh ($)
EPC Contractor Engineering,
Procurement,
Construction
Initial Cost($)
O&M Contractor
O&M Services
($)
Utility ($)
kWh
($) kWh
Cash Flow Diagram: PPA
Energy Exchange: Federal Sustainability for the Next Decade
Spreadsheet Analysis (PPA 10+10)
Year Cumulative Cash Cash Flow Capital
PPA Energy Sale ($/year)
REC Production Incentive Tax Credit MACRS O&M Cost State Tax
Debt Payment
0 -$5,625,000 -$5,625,000 -$5,625,000
1 -$2,428,357 $3,196,643 $248,464 $525,000 $2,250,000 $382,500 -$40,000 -$12,423 -$156,899
2 -$1,249,673 $1,178,685 $251,183 $525,000 $612,000 -$40,040 -$12,559 -$156,899
3 -$313,217 $936,455 $253,931 $525,000 $367,200 -$40,080 -$12,697 -$156,899
4 -$46,043 $267,174 $256,709 $0 $220,320 -$40,120 -$12,835 -$156,899
5 $223,377 $269,420 $259,517 $0 $219,938 -$40,160 -$12,976 -$156,899
6 $385,676 $162,299 $262,356 $0 $110,160 -$40,200 -$13,118 -$156,899
7 $440,501 $54,826 $265,226 $0 -$40,241 -$13,261 -$156,899
8 $498,043 $57,542 $268,128 $0 -$40,281 -$13,406 -$156,899
9 $558,332 $60,288 $271,061 $0 -$40,321 -$13,553 -$156,899
10 $621,397 $63,065 $274,027 $0 -$40,361 -$13,701 -$156,899
11 $687,269 $65,873 $277,024 $0 -$40,402 -$13,851 -$156,899
12 $755,981 $68,711 $280,055 $0 -$40,442 -$14,003 -$156,899
13 $827,562 $71,582 $283,119 $0 -$40,483 -$14,156 -$156,899
14 $902,046 $74,484 $286,216 $0 -$40,523 -$14,311 -$156,899
15 $979,464 $77,418 $289,347 $0 -$40,564 -$14,467 -$156,899
16 $1,059,848 $80,384 $292,513 $0 -$40,604 -$14,626 -$156,899
17 $1,143,232 $83,384 $295,713 $0 -$40,645 -$14,786 -$156,899
18 $1,229,648 $86,416 $298,948 $0 -$40,685 -$14,947 -$156,899
19 $1,319,131 $89,483 $302,219 $0 -$40,726 -$15,111 -$156,899
20 $1,411,714 $92,583 $305,525 $0 -$40,767 -$15,276 -$156,899
Cash Flow from Perspective of Private Party
PPA Price $0.071 (use goal seek function to solve for PPA Price)
Energy Exchange: Federal Sustainability for the Next Decade
Spreadsheet Analysis (PPA 10+10)
Cash Flow from Perspective of Government Agency
Year PPA Energy Purchase ($/year)
Cost of Replacement RECs ($/year) Utilty Cost ($/year)
0 0
1 $248,464 $35,000 $165,000
2 $251,183 $35,000 $165,165
3 $253,931 $35,000 $165,330
4 $256,709 $35,000 $165,495
5 $259,517 $35,000 $165,661
6 $262,356 $35,000 $165,827
7 $265,226 $35,000 $165,992
8 $268,128 $35,000 $166,158
9 $271,061 $35,000 $166,325
10 $274,027 $35,000 $166,491
11 $277,024 $35,000 $166,657
12 $280,055 $35,000 $166,824
13 $283,119 $35,000 $166,991
14 $286,216 $35,000 $167,158
15 $289,347 $35,000 $167,325
16 $292,513 $35,000 $167,492
17 $295,713 $35,000 $167,660
18 $298,948 $35,000 $167,828
19 $302,219 $35,000 $167,995
20 $305,525 $35,000 $168,163
Net Present Value $7,060,132
Energy Exchange: Federal Sustainability for the Next Decade 50
-$7,000,000
-$6,000,000
-$5,000,000
-$4,000,000
-$3,000,000
-$2,000,000
-$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
1 3 5 7 9 11 13 15 17 19 21
An
nu
al C
ash
Flo
w (
$/y
ear
)
Year
Debt Payment
State Tax
O&M Cost
MACRS
REC ProductionIncentive
PPA Energy Sale($/year)
Tax Credit
Capital $0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
1 6 11 16 21A
nn
ual
Cas
h F
low
($
/ye
ar)
Year
Utilty Cost($/year)
Cost ofReplacementRECs ($/year)
PPA EnergyPurchase($/year)
Spreadsheet Analysis (PPA 10+10)
Private Party (PPA Provider) Private Party (PPA Provider)
Energy Exchange: Federal Sustainability for the Next Decade
Comparison of Financial Scenarios
Net Present Value
Base Case: $8,252,748
Appropriations: $8,922,335
PPA (10+10 years): $7,060,132
51
Spreadsheet Analysis (PPA 10+10 years)
Energy Exchange: Federal Sustainability for the Next Decade
Federal Project Executives
• agencies identify, obtain, and implement alternative financing for renewable energy projects through Federal Project Executives (FPEs). A list of FPEs by geographic area is available on the FEMP Web site at: http://www1.eere.energy.gov/femp/financing/espcs_financingspecialists.html.
Energy Exchange: Federal Sustainability for the Next Decade 53
Agenda
I. FEMP Renewable Energy Tools and Resources
II. GIS Map Screening Tool
III. Financial Scenario Models
IV. National Park Service REopt Screening Process
V. Questions and Answers
National Park Service - PFMD
E X P E R I E N C E Y O U R A M E R I C A ™ 54
National Park Service Park Facility Management Division
Renewing Our National Parks
Renewable Energy Project Identification At The National
Park Service
Presented by: Shawn Norton
August 9, 2016
National Park Service - PFMD
E X P E R I E N C E Y O U R A M E R I C A ™ 55
Agenda
• Background
• Phase I
• Phase I Results
• Phase II
• Phase II Current Status and Next Steps
National Park Service - PFMD
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Background
• The NPS’s mission is to preserve unimpaired the natural and cultural resources
and values of the national park system for the enjoyment, education, and
inspiration of this and future generations
• The NPS manages the largest number of constructed assets of any civilian
agency, consisting of over 400 units and over 75,000 assets nationwide and in
U.S. territories, including:
o More than 50 million square feet of constructed space (such as visitor centers and
historic structures);
o More than 4 million acres of maintained landscapes (such as campgrounds and
battlefields);
o More than 17,000 miles of trails; and
o More than 3,000 utility systems
• 2016 marks the centennial anniversary of the NPS. In support of the centennial
celebration, the NPS engaged with DOE’s National Renewable Energy Laboratory
(NREL) to help the NPS identify the most cost-effective way to meet federal and internal
renewable energy (RE) goals and targets
NPS Overview
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Background
• The Green Parks Plan was released on Earth Day 2012 and defines our
collective vision and strategic plan for sustainable operations through
pursuit of sustainability goals
o Commits to reducing Servicewide building energy intensity by 35 percent
(measured as BTU used per square foot of building space) by 2016 from the
2003 baseline.
NPS Environmental and Energy Goals
• The NPS strives to be a leader in resource
management, and in many cases sets internal goals
that surpass Federal requirements
• A Call To Action was released in 2011 and outlines
our vision and action items leading up to our 100th
anniversary
o Commits to reducing our greenhouse gas emissions by
20 percent over 2009 levels, including on-site fossil fuel
usage and emissions due to electricity consumption,
and widely showcasing the value of renewable energy
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Background
• In FY15, 7.5% of the NPS’s electricity consumption was renewable electric energy
• EO 13693 requires the following percentage of renewable electric energy:
o 10% in FY 2016 and 2017;
o 15% in FY 2018 and 2019;
o 20% in FY 2020 and 2021;
o 25% in FY 2022 and 2023; and
o 30% by FY 2025 and thereafter
RE
Type
AKR IMR MWR PWR SER NCR NER TOTAL
Hydro-
electric
2 7 3 4 16
PV 10 32 28 158 17 6 9 250
Thermo
-electric
2 2
Wind 1 2 3
TOTAL 15 39 33 162 17 6 9 271
Number of Renewable Energy Systems by Region
Current NPS Renewable Energy Status
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Background
• The NPS has successfully met or exceeded the targets set forth by The Energy Policy Act (EPAct) of 2005, but will need to almost triple RE consumption in the next 5 years to meet the 30% renewable electricity consumption by FY 2025 target set forth in EO 13693
EPAct-qualified RE as a percent of total electricity consumption
NPS RE Consumption Trend
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Phase I
Activities Performed (2015):
• Screened 320 parks using the Renewable
Energy Optimization (REopt) tool
o The REopt tool integrates and optimizes
multiple technologies to find a mix of
technologies and an operating strategy that
meets NPS goals at minimum lifecycle cost
Technologies evaluated for
this screening: Rooftop Photovoltaics
Small Wind Turbines (<100 kW)
Biomass (thermal only)
Solar Hot Water (SHW)
Solar Vent Preheat (SVP)
Goals:
• Conduct Servicewide screening for renewable energy potential
• Identified locations of technical and cost-effective renewable energy
projects through the preliminary high-level enterprise-wide screening
• Prioritized additional, in-depth analysis of potential renewable energy
projects
• Conducted detailed site-specific feasibility studies at three parks
o Golden Gate National Recreation Area
o San Juan National Historic Site
o Wrangell – St Elias National Park & Preserve
REopt Study Background
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Phase I
Government funded
projects that reduce
costs now
Inform 20% RE strategy
and support planning of
government owned projects
3rd Party developer
owned projects that
reduce costs now
Inform 20% RE strategy
and support planning of 3rd
party developer owned
projects
OBJECTIVE
Minimize LCC 20% Net Zero Electric
OW
NE
RS
HIP
D
eve
lop
er
NP
S
• The REopt tool has two different ownership scenarios: o Third-Party Financed
o Government Financed
• …And two different objectives: o Lowest life cycle cost (minLCC)
o 20% Net Zero electric (NZe) energy case
• NPS study focused on developer-owned projects that minimize lifecycle cost
REopt Study Overview
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Phase I
Projects Size Cost NPV
PV 161 34,480 kW $40,610,000 $45,455,000
WIND 67 4,873 kW $6,697,000 $19,391,000
SVP 245 244,907 sq. ft. $2,600,000 $8,176,000
SHW 167 45,011 sq. ft. $1,803,000 $3,407,000
Servicewide REopt Results
*Findings are for a third-party financing scenario
Park PV Wind SHW Biomass Total
Golden Gate National
Recreation Area
$68,269 $68,269
San Juan National Historic
Site
$318,287 $376,109 $8,177 $702,573
Wrangell – St Elias National
Park & Preserve
$57,000 $14,600 $71,600
Site Feasibility Study Results
*Dollar amounts are in Net Present Value (NPV) and do not include incentives
REopt Study Results
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Phase I
• Onsite RE makes up 3%* of current NPS electricity consumption
• Potential to cost effectively meet an additional 25%* of current electricity consumption
with onsite RE for a total of 28%
Information based on FY 2013 Greenhouse Gas and Sustainability Report
REopt Study Results, con’t
NPS
• Because EPAct awards a double bonus for new onsite RE generation, this would
count as 55% toward the federal goal
* Does not include EPAct bonus
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Phase I
• Largest opportunities for new cost-effective RE generation are in the Northeast Region
and Pacific West Region due to higher energy consumption, higher utility energy costs,
and good RE incentives
• PV is the most promising contributor to NPS RE generation
o Compatible with the NPS’s many small distributed loads and low environmental
impact mission
o Simple to install and maintain.
*Information based on FY 2013 Greenhouse Gas and Sustainability Report
REopt Study Results, con’t
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Phase II
Phase II Goals:
• Install renewable energy technologies in our National Parks in order to
improve park sustainability performance
• Utilize these projects to demonstrate sustainability efforts during the
Centennial celebration
Phase II Activities:
Based on the results of the NREL REopt study, select the top 25 parks
based on the following attributes:
o High net present value (NPV)
o High visitor traffic
o Diversity in region, location (rural/urban), and project type
o Strong PV potential (e.g., Top 25 potential PV site in Phase I)
Engage with top 25 parks to gauge level of interest for receiving an on-
site feasibility assessment
Perform on-site feasibility assessments and provide report with potential
projects, including financing options and implementation plan
Provide as-needed assistance with project implementation and support
communication and outreach efforts for the 2016 Centennial
REopt Study Implementation
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Phase II
• Thirteen sites expressed strong interest in receiving technical support for
RE project installations
o Six sites are in progress
o Seven sites are planned for future support
Park Project
Hawai’i Volcanoes National Park Interconnection agreement support; feasibility study
Virgin Islands National Park RE feasibility study
Yosemite National Park Solar PV project scoping
Joshua Tree National Park RE feasibility study and project scoping
Katmai National Park &
Preserve RE feasibility study and project scoping
Sequoia & Kings Canyon
National Parks RE feasibility study and project scoping
Current Status & Next Steps
Energy Exchange: Federal Sustainability for the Next Decade 67
Agenda
I. FEMP Renewable Energy Tools and Resources
II. GIS Map Screening Tool
III. Financial Scenario Models
IV. National Park Service REopt Screening Process
V. Questions and Answers
Energy Exchange: Federal Sustainability for the Next Decade 68
Questions and Answers
Rachel Shepherd FEMP, Renewable Energy Program Manager [email protected] 202-586-9209
Andy Walker NREL, Principal Engineer [email protected] 303-384-7531
Shawn Norton NPS, Branch Chief, Sustainable Operations and Climate Change [email protected] 202-354-1835
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