1. Renewable System Designs Preliminary Proposal for: Mountain ViewElectric Association, Inc. Proposal Architects: Marlene Hebner Loren Schwappach Chris Williamson Anthony Santistevan December 2010
2. AgendaTopic Presenter Introduction & Project Overview Loren Schwappach Initial Findings Marlene Hebner Plans and Financing Marlene Hebner Project Milestones & One-line Diagram Anthony Santistevan Permitting and Environmental Baseline Anthony Santistevan Project Phasing Marlene Hebner Wind Power Availability Research Loren Schwappach Site Layout Diagrams Loren Schwappach Turbine Selection Criteria Chris Williamson Selected Turbine Features Chris Williamson Project Timeline & Gantt Chart Anthony Santistevan Construction Plan Loren Schwappach Supporting Documentation Chris Williamson
3. Introduction• As an American owned Limited liability company (LLC) RenewableSystems Design (RSD) has a proven reputation for engineering state ofthe art, cost effective renewable energy solutions across the globe.• Located in downtown Colorado Springs, Renewable SystemsDesign has over 12 staff electrical engineers, 22 skilled turbinetechnicians, and a large diverse labor force making RSD the #1renewable energy design firm in the west.• RSD designs provides large and small scale renewable energysolutions while controlling operational costs, and enabling owners tosecure low-cost electricity for the future.
4. Project Overview• Mountain View Electric Association, Inc. is expanding capabilitiesin renewable energy generation and has partnered with the ColoradoDepartment of Energy for installation of a 1 sq. mile Wind Farm Lotlocated on MVEA property at 38° 57’N, 104° 39’W.• Renewable Systems Design (RSD) has been contracted to performa feasibility report / preliminary proposal for MVEA for the saiddevelopment, construction and future maintenance of the MVEA windfarm.
5. Project OverviewAs agreed MVEA shall provide the following:1. Paved road access to all construction sites.2. A maintenance facility, consisting of an on-site building with workshop and garage space.3. A substation designed for direct connection to the wind farm. MVEA requests the wind farm meet the following specifications: Criteria Specification Maximum Output Power 12MVA Planned average output power 4MVA Output Power 600V, 60Hz, 3phase
6. Initial Findings• The proposed wind farm will be comprised of six GE 2.5xl (2.5MW) windturbines staggered 500m apart on an east west line.• At Ideal wind speeds the wind farm will produce a maximum of 15MW ofpower with an average output of 4MW.• Each wind turbine will perform voltage and power regulation, andtransfer power to MVEA substation via a Kerite 1000 kcmil 34.5 kVunderground line.• The total cost for the proposed wind farm is $26.65 M. With an estimatedbreak even point after 13 years.• In 20 years the proposed wind farm is estimated to generateapproximately $4.8M in revenue (NPV) with an annual power production of35,000 MWh.
7. Plans and Financing PROJECT SUMMARYRenewable System DesignsProject Size (MW) 4 avg (15 max)Turbine Model GE 2.5MWNet Capacity Factor (Years 1-20) 27%Total MWh Produced (Years 1-20) 700,000Total Installed Cost $26.7MBond Duration (Years) 15Bond Interest Rate 5.06%Bond Payment (Years 1-15) $2,578,000O & M (% of revenues) 3%Capital Cost per MWh $60
8. Plans and Financing Project ParametersPer Wind Turbine Rated Output (MW) 2.5Number of Wind Turbines 6Project Life (years) 20Initial Investment Cost ($M) 26.65Year construction is completed 2012 Revenue (MWh)Selling Price of Electricity 40Green Electricity Premium 30 Total (MWh) 70 Capital Cost1) Site:Wind Speed Feasibility Studies 250,000Permits, Contracts, & Related Fees 33,000Engineering and Development 595,000Power line to Grid 258,300 Total ($) 1,136,3002) Per Wind Turbine:Base 1,125,000Crane 60,000Tower 360,000Wind Turbine and Blade System 2,400,000Installation Labor & Training 130,000Installation Material 50,000 Total ($) 4,125,000
9. Plans and Financing Operating and Maintenance Expenses1) Site (per year)Maintenance Expenses 20,000 Total ($ per year) 20,0002) Per Wind Turbine (per year)Inspections 7,000Cleaning 4,500Maintenance and Repairs 43,500 Total ($ per year) 55,000 FinancingAnnual Compound Interest Rate (%) 5.06Length of Loan (years) 15 Inflation (%)Electricity Selling Price Annual Inflation 3Expense Annual Inflation 3 IncentivesProduction Tax Credit ($/kWh) 0.021
10. Plans and Financing Yearly Net Energy Yield1) Production Losses (%):Ice & Cold Temperature Related 3Grid & Substation 3Array 02) Annual Energy Yield Predictions (MWh):Gross 40,000Net 35,000Maximum Yield (MWh) 75,000Capacity Factor (%) (Net Yield/Max Yield) 27
11. Plans and Financing
12. Plans and FinancingThe following resources provided critical financial planning informationfor your proposal:Colorado Wind POCs:Mona Newton, Central Regional Representative,Colorado Governors Energy OfficePhone: (303) 866-2100Colorado Anemometer Loan Program:Contact: Mr. Michael Kostrzewa,P.E., Director, Colorado Anemometer Loan Program,Colorado State UniversityPhone: (970) 491-7709Colorado Wind Farm Incentive Program:Program Sponsor: Colorado Department of Local Affairs, Division of Property TaxationWebsite:http://dola.colorado.gov/dpt/state_assessed/docs/2007%20Cost%20Threshold%20memo.pdf
13. Project Milestones12/17/10 Begin Project1/13/11 Construction Begins - All Financing has been completed - Recommend MVEA begin site preparation9/26/11 All site preparation must be completed9/29/11 Begin Wind Turbine Assembly1/27/12 All construction complete. Begin operational checks2/9/12 Handover to MVEA for commissioning
14. Project Milestones
15. One Line DiagramUnderground 34.5kV Bus
16. Project PermittingProject Permitting:As previously agreed, MVEA will procure /ensure allpermitting and site certification requirements are obtainedby 1/17/11.Information on Colorado Springs Permits, Applications andFees can be obtained at:http://www.springsgov.com/page.aspx?navid=550
17. Environmental BaselineEnvironmental Baseline:MVEA has ensured that an environmental baseline of thesite was conducted, and the site has been authorized by thegovernmental authorities for the proposed Wind Farm.
18. Project Phasing Phase 1: Initiation and Feasibility 1a) Determine Project Requirements: • 4 MW output power required, lifespan of 20yrs. 1b) Perform Feasibility study: • Inventory & assessment of risks displayed sufficient wind resource & grid capacity at site. 1c) Perform Pre-Energy Analysis: • 6.8 m/s average wind speed at hub height of 100m • Wind speed according Weibull distribution function • Net energy yield of 35,000 MWh (6 GE 2.5xl 100m turbines) 1d) Plan area for the 4 MW Wind Farm: • Site Coverage = 1 sq. mile • Distance between turbines & building etc • Minimum separation of 500m (for 0% array loss) 1e) Create investment and operational costs plan: • Initial investment costs = 26.65M (4.44M*6) • Yearly operational costs = 450k (75k*6)
19. Project Phasing Phase 2: Preconstruction 2a) Environmental permit & noise restrictions • Completed by MVEA 2b) Determine grid connection – High voltage level (34.5 kV): • Each turbine equipped with a transformer 2c) Perform project financing analysis 2e) Calculate yearly net energy yield of the 4 MW wind farm: • Gross energy yield 40,000 MWh • 0% array losses (turbulence due to distance between adjacent turbines) • 3% airfoil losses due to icing and cold weather • 3% grid losses (electrical losses between turbine switchgear & grid connection) • 93.6% availability (typically 97% or greater) • Net energy yield: 35,000 MWh (total)
20. Project Phasing Phase 3: Engineering and ConstructionAll activities from commencement of works to operation of WindFarm. 3a) Ensure access to site & storage facility • Components shipped to site: foundation anchor, tubular tower parts, ground ctrl & switchgear, transformer, assembled nacelle, hub & rotor blades. 3b) Proceed with Crane Operations • 600 ton to hoist tower parts, nacelle, & rotor 3c) Install wind turbines at site. 3d) Inspect/Take Over Wind Farm after completion of buildingand installation.
21. Project Phasing Phase 4: Operation and Maintenance 4a) Daily Operation and Maintenance of Wind Farm • Average Maintenance Service = Approx $75k per turbine per year = $450k per year. • Warranty & maintenance become active after commission
22. Criteria used in Turbine Selection Availability of Wind PowerAvailable Wind Power:The amount of energy that a wind turbine can produce isdependant on the wind regime where it is located and theefficiency with which it captures the wind.The wind regime is defined by three characteristics:1. The average wind velocity2. The Weibull distribution of the wind velocity,3. Wind shear (and turbulence) of the wind at the turbine location.
23. Availability of Wind PowerMicrosoft MapPoint North America 2010Wind Farm Location Results. Location of Wind Farm Google Map Results of Wind Farm Location: Degrees Minutes and Seconds to Decimal Degrees Equivalent
24. Availability of Wind Power This Windrose Plot shows the nominal wind direction at the site location
25. Availability of Wind Power50m Annual Wind Speeds Map Location of Wind Farm Approx 6m/s wind speeds at 50m
26. Availability of Wind Power100m Annual Wind Speeds Map Location of Wind Farm Approx 7.5m/s wind speeds at 100m
27. Site Layout – Option 1Housing Housing MVEA proposed 1 sq. mile lot Alt MVEA proposed 1 sq. mile lot (Chosen) MVEA Substation
28. Site Layout – Option 2 Prevailing Wind Direction MVEA Substation Access Road Underground 34.5kV Bus Swept AreaDistance: 250m 500m 1250m 500 m = Approx 0.31 mi Alt MVEA proposed 1 sq. mile lot (Chosen)
29. Project Development Turbine Selection CriteriaCriteria used for turbine selection:1) Power production at site (nominal wind speeds)2) Cut-in / Cut-out wind speeds3) Purchase costs / average maintenance costs4) Swept area & turbine weight5) Features a) Full power conversion providing quality power to the grid. b) Minimal noise c) Lifespan6) Reliability
30. Project Development Turbine Manufacturers AnalyzedTurbine manufacturers reviewed in our proposal:(US)Northern Power Systems:http://www.northernpower.com/wind-power-products/index.php*GE:http://www.gepower.com/prod_serv/products/wind_turbines/en/index.htm(NON US):Aeolos:http://www.windturbinestar.com/Coemi:http://www.coemiwindturbines.co.uk/index*After reviewing turbine performance/features against costs and availability we choose the GE 2.5MW 100m turbine.
31. Project DevelopmentSelected Wind Turbine Features
32. Project DevelopmentSelected Wind Turbine Features
33. Selected Wind Turbine Features
34. Project DevelopmentSelected Wind Turbine Features
35. Project DevelopmentSelected Wind Turbine Features
36. Project Timeline
37. Gantt Chart
38. Project Development Construction PlanThe construction of the Mountain View Electric Association Inc. Wind Power Projectwill be performed in several stages and will include the following main elements andactivities:Mountain View Electric Association Inc. Responsibilities: • Grading of the field construction office area (also used for O&M building) • Construction of site roads, turn-around areas and crane pads at each wind turbine location • Provide substation • Plant commissioning and energizationRenewable System Designs, Inc. Responsibilities: • Construction of the turbine tower foundations and transformer pads • Installation of the electrical collection system – underground and some overhead lines • Assembly and erection of the wind turbines
39. Project Development Construction Plan Proposed Project Construction Schedule Summary Approx: TIME ALLOCATED On-Site TASK / MILESTONE START FINISH FOR TASK Manpower for Task1 Obtain Site Certification 1 Month TARGET 1/17/11 *MVEA Provided2 Engineering/Design/Specifications/Surveys 2 Weeks 1/17/11 2/1/11 153 Purchase Order to Transport 9 Months 1/17/11 10/16/11 N/A4 Road Construction 3 Months TARGET 3/15/11 *MVEA Provided5 Foundations Construction 6 Months TARGET 6/16/11 *MVEA Provided6 Electrical Collection System Construction 6 Months 2/1/11 8/2/11 307 Substation Construction 0 Months N/A Completed *MVEA Provided8 Wind Turbine Assembly 4 Months 10/17/11 02/15/12 409 Plant Energization and Commissioning 0 Months N/A Completed *MVEA Provided10 Wind Farm Substantial Completion 14 Months TARGET 02/16/12 N/A11 Construction Clean-Up 2 Weeks 02/16/12 03/02/12 15 TOTAL (Excluding MVEA Manpower) 130
40. Project Development Construction Plan Construction Labor Force Mix (Approximate # Personnel) Project Skilled Labor & Field Technical ConstructionPhase Management & Equip Unskilled Labor Total Staff Engineers OperatorsEngineering/Surveying/Design 6 12 0 0 18Road Construction *MVEA *MVEA *MVEA *MVEA *MVEAFoundations Construction * MVEA *MVEA *MVEA *MVEA *MVEAElectrical Collection System Construction 2 3 23 12 40Substation Construction N/A N/A N/A N/A N/AWind Turbine Assembly and Erection 4 6 15 15 40Plant Energization and Commisioning *MVEA *MVEA *MVEA *MVEA *MVEAConstruction Clean-Up 1 1 3 10 15 TOTALS (Excluding MVEA Labor) 18 32 56 37 143
41. Project Development Construction PlanOperations and Maintenance Labor ForceIf Agreed upon the project will be operated and maintained by a team of approximately 10 to 12 on call personnel consisting ofthe following staff positions: Position Number of Personnel Wind Turbine Site Manager 1 Operations Manager 1 Operating Technitians 6-8 TOTAL 10-12The Operations and Maintenance (O&M) team will staff the Project during core operating hours 8 hours per day, 5 days perweek, with weekend shifts and extended hours as required. In the event of outages, the system will send alarm messages toon-call technicians via pager or cell phone to notify them of the outage. The Project will always have a local, on-call localtechnician who can respond quickly in the event of any emergency notification or critical outage. Operating technicians willrotate the duty of being on-call for outages.
42. Supporting Documentation• Wind power production and cost analysis was calculated using RETScreen International’s clean energy project analysis software.• Average wind speed, availability, and prevailing wind direction were calculated using the previous 3 years of data collected at the nearest and best representation of the site location, the Colorado Springs Airport.• Wind shear coefficient was calculated using information gathered from several previous studies and estimated based on the terrain at the project site.
43. Supporting Documentation• Underground high voltage cable was selected to avoid potential damage due to severe weather.• The Kerite Company’s 35kV URD underground cable was selected based on the company’s reputation of creating the most reliable underground cable in the business.• Kerite’s 1000 kcmil cable was selected based on its rating of 462 A @ 100% load factor.• 2.5 MW x 6 = 15,000 kVA » 15,000 kVA/34.5 kV = 435 A• Cost = $61.50/meter x 4,000 meters = $246,000
44. Supporting DocumentationResource assessmentResource method Wind speedWind speed - annual m/s 4.5Measured at m 10.0Wind shear exponent 0.18Air temperature - annual °C 9.3Atmospheric pressure - annual kPa 81.1 Wind Power Energy speed curve data curve dataWind turbine m/s kW MWhPower capacity per turbine kW 2,500.0 0 0.0Manufacturer GE 1 0.0Model GE Wind 2.5xl - 100m 2 0.0Number of turbines 6 3 0.0 785.8Power capacity kW 15,000.0 4 100.0 2,214.4Hub height m 100.0 6.8 m/s 5 250.0 4,216.3Rotor diameter per turbine m 100 6 500.0 6,417.7Swept area per turbine m² 7,854 7 800.0 8,525.4Energy curve data Custom 8 1,250.0 10,389.1Shape factor 2.0 9 1,750.0 11,944.3 10 2,100.0 13,163.4Array losses % 0.0% 11 2,300.0 14,042.2Airfoil losses % 3.0% 12 2,400.0 14,598.7Miscellaneous losses % 3.0% 13 2,500.0 14,868.9Availability % 93.6% 14 2,500.0 14,899.4 15 2,500.0 14,739.8 Per turbine 16 2,500.0Unadjusted energy production MWh 8,127 17 2,500.0Pressure coefficient 0.801 18 2,500.0Temperature coefficient 1.020 19 2,500.0Gross energy production MWh 6,638 20 2,500.0Losses coefficient 0.88 21 2,500.0Specific yield kWh/m² 744 22 2,500.0Summary 23 2,500.0Capacity factor % 26.7% 24 2,500.0Electricity exported to grid MWh 35,075 25 - 30 0.0
46. References• Colorado Springs Utilities Henry Henderson Pricing and Forecasting Supervisor (719) 448 4800• Chase Bank Matthew Feltener Small Business Banker (719) 637 3253• Colorado Wind: Mona Newton, Central Regional Representative, Colorado Governors Energy Office Phone: (303) 866-2100• Colorado Anemometer Loan Program: Contact: Mr. Michael Kostrzewa, P.E., Director, Colorado Anemometer Loan Program, Colorado State University Phone: (970) 491-7709• Colorado Wind Farm Incentive Program: Program Sponsor: Colorado Department of Local Affairs, Division of Property Taxation Website: http://dola.colorado.gov/dpt/state_assessed/docs/2007%20Cost%20Threshold%20memo.pdf