Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Development Options for Municipal Renewable Energy Projects

520 views

Published on

Development Options for Municipal Renewable Energy Projects
Briony Angus
Tighe & Bond

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

Development Options for Municipal Renewable Energy Projects

  1. 1. Development Options forMunicipal Renewable EnergyProjectsMAPD Annual Conference,June 10, 2011New BedfordBriony Angus, AICPTighe & Bond
  2. 2. Goals of Session■ Start with high-level overview of relevantconcepts■ Summary of alternative development andownership models – impacts to cost, benefit,risk, and process■ Examples from two communities: Lancasterand Dartmouth■ Questions and Discussion■ Not going to get into financial weeds!
  3. 3. Tighe & Bond Overview■ Full-service engineering and environmentalconsulting firm■ Involved in all aspects of renewable energyprojects from planning, economic analysis,design, permitting, to construction■ 100 year history – now assisting numerousmunicipal clients to bring renewable energyprojects from concept to construction
  4. 4. Ownership Structures/Development ModelsMunicipalityOwns &OperatesPrivate/Third PartyOwnershipJointOwnership/”Flip”Multiple versions of these models
  5. 5. Economic Drivers - Cost■ Fixed capital costs■ Variable capital costs■ O&M Costs■ Interest rate for debtfinancing
  6. 6. Economic Drivers -Revenue■ Capacity factor■ Electricity generation price■ Net Metering■ RECS/SRECs■ Land Lease Payments■ Financial Incentives, Grants– Tax exempt financing– Federal ITC/Grant– Accelerated Depreciation– Grants and Low Interest Loans
  7. 7. Risk and Complexity■ Consider changes invariables that could skewIRR:– Construction Costs– Permitting Costs– Electricity prices– Changes in net meteringrates/REC values■ Other potential concerns:– Interconnection queue– Net metering limits– Changes to financial incentives
  8. 8. Simple Municipal Ownership
  9. 9. Municipal Ownership with Other Off-Taker
  10. 10. Public/Private Partnership
  11. 11. Decision Making forMunicipalitiesIn the end – what drives decision making? Ability to leverage funds Access to tax benefits Appetite for risk Desire for project involvement Economics and project scale
  12. 12. Questions or Comments?Founded 1911Creative Engineering Solutions for 100 YearsShelton, CT • Middletown, CT • Portsmouth, NHWestfield, MA • Worcester, MA • Pocasset, MABriony Angus(413) 875-1302bangus@tighebond.com

×