Renewable Energy Plan 26  OCTOBER 2011 Presented by: Energy Transformation Office (ETO)
<ul><li>Construct a 4 MW Solar demonstration project to show progress and utilize for Peak Shaving. Time to construct the ...
<ul><li>Solar Photovoltaic (PV)  : Hard Costs $3,200,000 + Soft Costs $900,000 =  Total $4,100,000.  This leads to an elec...
<ul><li>Must use other people’s money </li></ul><ul><ul><li>Power Purchase Agreement (PPA), through Western Area Power Adm...
<ul><li>Proposed Timeline for Completion of Environmental Planning Requirements for Alternative Energy Project(s) </li></u...
RENEWABLE ENERGY PLAN PATH FORWARD RENEWABLE ENERGY PLAN Solar Geothermal Geothermal  Exploration  5 MW Site Clearance – S...
<ul><li>Contract awarded for Renewable Energy support </li></ul><ul><li>Environmental Assessment for will be completed  by...
<ul><li>Conservation of energy and water </li></ul><ul><ul><li>Behavior </li></ul></ul><ul><ul><li>Technology </li></ul></...
<ul><li>C onsumed 102 GWH in FY2010 for a cost of $7.5 M. </li></ul><ul><li>Electricity cost is a combination of the KWH u...
<ul><li>Geothermal  Power is considered Base Load 24/7 power. </li></ul><ul><li>Solar power can be used for shaving peak d...
<ul><li>Two technical approaches: traditional and deep rock. Both extract heat to power steam turbines.  </li></ul><ul><li...
<ul><li>Option 1 - Release an RFP for a 20 MW geothermal project, funded through a power purchase agreement. Permit test d...
<ul><li>An Environmental Assessment (EA) is underway which will be completed by June 2012. </li></ul><ul><li>A site is bei...
<ul><li>EPEC supplies El Paso, West Texas and much of southern New Mexico.  </li></ul><ul><li>EPEC has not been approached...
QUESTIONS ? RENEWABLE ENERGY PLAN
Upcoming SlideShare
Loading in …5
×

Session 3A - Samuel Sanchez

524 views
435 views

Published on

Samuel Sanchez, Renewable Energy Program Manager, White Sands Missile Range Presentation

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
524
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • POWER PURCHASE AGREEMENTS (PPAs): Power purchase agreements (PPAs) allow the Army to finance on-site renewable energy projects without up-front capital costs. With a PPA, a developer installs a renewable energy system on Army property under an agreement that the Army will purchase the power generated by the system. The Army pays for the system through these power payments over the life of the contract. The developer owns, operates, and maintains the system for the life of the contract. PPA - The most critical, and often most complicated component of a renewable energy project is the negotiation and execution of a long term contract for the sale of the electricity generated by the project – called a power purchase agreement or PPA. For the seller, who is generally the owner or developer of the renewable project, a PPA is a necessary part of securing equity and debt financing because it demonstrates a long-term revenue stream for the project. The buyer, often a utility, may be motivated to secure a long-term agreement for renewable energy to meet a state Renewable Portfolio Standard (RPS), now in effect in twenty-eight states, or by the potential of a national RPS, which has been identified as a key policy proposal of the Obama administration. The PPA sets forth the complex, long-term relationship between the parties and includes key provisions regarding price, transfer of environmental attributes, project construction and timing, credit support, defaults, and damages. The most heavily negotiated of these PPA provisions address the tension between buyer and seller resulting from the need to equitably allocate uncertainties that are inherent in renewable energy projects – i.e., capacity factor in wind and solar projects, future regulatory requirements, transmission curtailments, and system upgrade costs. ENHANCED USE LEASING (EUL): The Enhanced Use Leasing (EUL) process allows military installations to out-lease land to a private or public entity for the development of renewable power or other energy projects. Installations can out-lease land, enter into long-term or short-term leases, provide greater flexibility for facility reuse, and receive fair market rental, (either in cash or in-kind), as consideration for the leased property. In exchange, the developer can provide power generation facilities, manage distribution systems, and deliver critical energy needs without significant upfront installation investment. EUL - The Army Enhanced Use Leasing (EUL) Program, managed by the U.S. Army Corps of Engineers, Baltimore District, engages a competitive process, private sector entities to acquire and leverage value from non-excess real estate assets on Army and select Department of Defense (DoD) Installations. With the expanded authority of Title 10, USC § 2667, each of DoD Military Departments have the authority and incentive to obtain a broad range of financial and in-kind considerations of for leasing opportunities. The changes to Section 2667 expand the purpose for which lease proceeds may be used, and augment the types of in-kind consideration which may be accepted for leases. These changes maximize the utility and value of installation real property and provide additional tools for managing the installation’s assets to achieve business efficiencies. ENERGY SAVINGS PERFORMANCE CONTRACT (ESPC): An Energy Savings Performance Contract (ESPC) is a partnership between the Army and an Energy Service Company (ESCO). In consultation with the installation, the ESCO designs and executes projects that meet the Army&apos;s needs by improving energy efficiency of existing facilities and implement new renewable energy capability where economics permit. The ESCO arranges the financing for the project and guarantees that the improvements will generate sufficient energy cost savings to pay for the project over the term of the contract. After the contract ends, all additional cost savings accrue to the Army. ESPCs allow installations to accomplish energy savings projects without up-front capital costs. ESPC - Energy Savings Performance Contracts (ESPCs) allow Federal agencies to accomplish energy savings projects without up-front capital costs and without special Congressional appropriations. An ESPC is a partnership between a Federal agency and an energy service company (ESCO). The ESCO conducts a comprehensive energy audit for the Federal facility and identifies improvements to save energy. In consultation with the Federal agency, the ESCO designs and constructs a project that meets the agency&apos;s needs and arranges the necessary financing. The ESCO guarantees that the improvements will generate energy cost savings sufficient to pay for the project over the term of the contract. After the contract ends, all additional cost savings accrue to the agency. Contract terms up to 25 years are allowed.
  • Session 3A - Samuel Sanchez

    1. 1. Renewable Energy Plan 26 OCTOBER 2011 Presented by: Energy Transformation Office (ETO)
    2. 2. <ul><li>Construct a 4 MW Solar demonstration project to show progress and utilize for Peak Shaving. Time to construct the 4 MW PV Solar Array is 6 months. </li></ul><ul><li>Complete the renewable energy Environmental Assessment (EA) by June 2012 for four parcels (4 MW solar project it is being done on a separate EA by in-house personnel and should be completed by the end of November). </li></ul><ul><li>Prove/disprove geothermal viable - September 2011 - March 2012. </li></ul><ul><ul><li>Determine the presence of a viable geothermal heat source (desktop analysis and gas well analysis) </li></ul></ul><ul><ul><li>Determine the capacity (how much heat can we withdraw?) </li></ul></ul><ul><ul><li>Determine the best size given breakpoints for construction (tentatively 20 MW) </li></ul></ul><ul><li>Once Geothermal is proved technically and financially viable: </li></ul><ul><ul><li>Determine the lead agent (COE, WAPA, DOE?) (tentatively WAPA) </li></ul></ul><ul><ul><li>Permit drilling of test wells at bidder expense </li></ul></ul><ul><ul><li>Initiate the contract </li></ul></ul><ul><li>If Geothermal is not viable </li></ul><ul><ul><li>Increase PV solar facility up to a total of 20 MW. </li></ul></ul><ul><ul><li>Various solar projects are being prepared (DD1391’s) </li></ul></ul><ul><ul><li>Energy storage devices, such as, fly wheel, molten salt tanks, fuel cells are being considered </li></ul></ul>‘ The Plan’ RENEWABLE ENERGY PLAN
    3. 3. <ul><li>Solar Photovoltaic (PV) : Hard Costs $3,200,000 + Soft Costs $900,000 = Total $4,100,000. This leads to an electricity price of 11.5-12.5 cents per KWH. </li></ul><ul><li>Wet Geothermal : Hard Costs $3,600,000 + Soft Costs $900,000 = Total $4,500,000. Prices can range from 8-13 cents per KWH. </li></ul><ul><li>Deep Rock Geothermal : This technology is not mature enough to be able to provide accurate cost estimates. </li></ul>Cost Estimates – 1MW renewable RENEWABLE ENERGY PLAN
    4. 4. <ul><li>Must use other people’s money </li></ul><ul><ul><li>Power Purchase Agreement (PPA), through Western Area Power Administration (WAPA), second choice </li></ul></ul><ul><ul><li>Energy Conservation Investment Program (ECIP), cannot get projects approved </li></ul></ul><ul><ul><li>Utility Renewable Electricity Service Contract (URESC), questionable if a utility company will do this </li></ul></ul><ul><ul><li>Enhanced Use Lease (EUL), no business case for utilities (EUL’s are being rewritten for renewable energy projects) </li></ul></ul><ul><ul><li>Obtain MILCON funds with DD1391 Documentation </li></ul></ul>FINANCIAL CONSIDERATIONS RENEWABLE ENERGY PLAN
    5. 5. <ul><li>Proposed Timeline for Completion of Environmental Planning Requirements for Alternative Energy Project(s) </li></ul>Jan Feb Mar Apr May Jun Jul Aug 15 25 30 30 30 30 30 MIPR accepted & Contract Awarded Kickoff Mtg & Data Review UXO Surveys; EA Field Work Incl Cultural Surveys if Req’d Issue Draft EA for Review Publish Draft EA Incorporate Public Comments EA & FNSI Signed 2011 Sep Oct Nov Dec RENEWABLE ENERGY PLAN
    6. 6. RENEWABLE ENERGY PLAN PATH FORWARD RENEWABLE ENERGY PLAN Solar Geothermal Geothermal Exploration 5 MW Site Clearance – Solar & Geothermal (EA) 245 ac Solar - 4 MW Solar - 5 MW (UpRange) Review & Investigate PPAs, EUL, ESA, ESPC & LGIP Decision Point Geothermal - Expand to 20 MW (EA) Site Clearance 42 ac, 4 MW Solar Enclosure 2 2011 2018 2012 2013 2014 2015 Green Net 0 by 2015 Future Growth PPAs – Power Purchase Agreements EUL – Enhance Use Leasing ESA – Energy Service Agreement ESPC – Energy Savings Performance Contract LGIP – Large Generation Inter connection Permits EIS – Environmental Impact Study REC – Record of Environmental Consideration EA – Environmental Assessment WAPA – Western Area Power Administration
    7. 7. <ul><li>Contract awarded for Renewable Energy support </li></ul><ul><li>Environmental Assessment for will be completed by end of November. </li></ul><ul><li>Been contacted by our neighbors for future projects </li></ul>LATEST EVENTS RENEWABLE ENERGY PLAN
    8. 8. <ul><li>Conservation of energy and water </li></ul><ul><ul><li>Behavior </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Insulation </li></ul></ul><ul><ul><li>Policy/process </li></ul></ul><ul><ul><li>Energy Engineering and Analysis Program </li></ul></ul><ul><ul><li>Utility Modernization Program </li></ul></ul><ul><ul><li>Utility Energy Service Contracts </li></ul></ul><ul><ul><li>Demolition of excess inventory </li></ul></ul><ul><li>Reduce costs of purchased power </li></ul><ul><li>Generate renewable energy </li></ul><ul><ul><li>Solar </li></ul></ul><ul><ul><li>Geothermal </li></ul></ul><ul><ul><li>Nuclear (Small Modular Reactor) </li></ul></ul><ul><li>Reduce waste stream </li></ul><ul><ul><li>Recycling </li></ul></ul><ul><ul><li>Reducing use of non-renewables </li></ul></ul>WHERE IT FITS IN NET ZERO PLAN RENEWABLE ENERGY PLAN
    9. 9. <ul><li>C onsumed 102 GWH in FY2010 for a cost of $7.5 M. </li></ul><ul><li>Electricity cost is a combination of the KWH used, plus a surcharge for the highest peak demand within each month. The expected average combined cost for 2011 is 9.2 cents/KWh. (Demand Cost=> $19,00 MW) </li></ul><ul><li>Highest Peak load was 20 MW for the installation and is fed by El Paso Electric. A 2 MW load from three Co-Ops are fed by a Tri-State Electric transmission. </li></ul>ENERGY CONSUMPTION AND COSTS RENEWABLE ENERGY PLAN
    10. 10. <ul><li>Geothermal Power is considered Base Load 24/7 power. </li></ul><ul><li>Solar power can be used for shaving peak demand. </li></ul><ul><li>Have the potential for Geothermal Power. </li></ul><ul><li>If geothermal proves effective, then any investment in Solar Power becomes a liability unless we can sell the excess power </li></ul>GEOTHERMAL VERSUS SOLAR ENERGY RENEWABLE ENERGY PLAN
    11. 11. <ul><li>Two technical approaches: traditional and deep rock. Both extract heat to power steam turbines. </li></ul><ul><li>Traditional wet heat – requires underground steam close to the surface. Heat wells are drilled to 1500 feet. </li></ul><ul><li>Deep Rock – promising but undemonstrated technology. Close Loop System, wells are drilled down to 8000 feet or more. </li></ul><ul><li>Collect and analyze data to increase the level of confidence of any investor. </li></ul><ul><ul><li>Obligate funds for gas sensing wells to pinpoint the best geothermal locations ($100 K - $150 K). </li></ul></ul>GEOTHERMAL RENEWABLE ENERGY PLAN
    12. 12. <ul><li>Option 1 - Release an RFP for a 20 MW geothermal project, funded through a power purchase agreement. Permit test drilling at bidder expense starting Jan 2012. Five private contractors submitted interest to the Request For Information (RFI) in March. </li></ul><ul><li>Option 2 - Use Western Area Power Authority (WAPA) for a 20 MW Geothermal facility. </li></ul><ul><li>Option 3 – Obtain MILCON Funds With DD1391 </li></ul><ul><li>All options require establishing a base cents per KWH price that is acceptable. </li></ul>GEOTHERMAL (continued) RENEWABLE ENERGY PLAN
    13. 13. <ul><li>An Environmental Assessment (EA) is underway which will be completed by June 2012. </li></ul><ul><li>A site is being cleared with an Environmental Assessment (to be completed by November) for a test 4 MW Solar array. </li></ul>ENVIRONMENTAL RENEWABLE ENERGY PLAN
    14. 14. <ul><li>EPEC supplies El Paso, West Texas and much of southern New Mexico. </li></ul><ul><li>EPEC has not been approached to purchase any excess power that we can produce. </li></ul><ul><li>At this time planning is underway to generate only enough renewable energy for our needs. </li></ul><ul><li>EPEC may decide in the near future to accept excess power generated by us, and use it to feed its customers. </li></ul>EI PASO ELECTRIC COMPANY (EPEC) RENEWABLE ENERGY PLAN
    15. 15. QUESTIONS ? RENEWABLE ENERGY PLAN

    ×