RENEWABLE ENERGY SERIES Energy Development on New...

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Ian Webster President & Founder Project Navigator, Ltd. Jon Benjamin Partner Farella Braun + Martel Karen Irwin Sustainable Local Government Lead EPA Region 9 Mark Tholke Chief Development Officer, Advance Microgrid Solutions Golden State Renewable Energy UNPLUGGED RENEWABLE ENERGY SERIES Renewable Energy Development on Brownfields: New Opportunities and Issues

Transcript of RENEWABLE ENERGY SERIES Energy Development on New...

Page 1: RENEWABLE ENERGY SERIES Energy Development on New ...projectnavigator.com/downloads/PNL-PVN_solar-on... · • Data &Viz PVNavigator,LLC • Utility‐scale PV solar power developments

IanWebsterPresident &FounderProject Navigator, Ltd.

Jon BenjaminPartnerFarella Braun +Martel

Karen IrwinSustainable Local  Government Lead  EPA Region 9

Mark TholkeChief Development Officer,  Advance Microgrid Solutions  Golden State Renewable Energy

UNPLUGGED RENEWABLE ENERGY SERIES

Renewable Energy Development on  Brownfields: New Opportunities and Issues

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PVNAVIGATOR, LLC

Renewable Energy Development on BrownfieldsNew Opportunities and Issues

WESTCOAST1 Pointe Drive, Suite 320Brea, CA92821714.388.1800 www.PVNavigator.com

GULF COAST15990 N. Barkers Landing Rd.,  Suite325Houston, TX 77079713.468.5004

Presentation at:

Farella Braun + Martel, LLP’s  Unplugged Renewable Energy Series

Ian A. Webster, Sc.D.President, Project Navigator, Ltd & PVNavigator, LLCMarch 15th, 2017

www.ProjectNavigator.com

in       partnership  

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Sponsored by:

Farella Braun + Martel LLP

The Environmental Law Institute

UC Berkeley Center for Law, Energy  and Environment

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Grand Perspective: Renewable Power, While Still a Small Fraction of  Carbon‐Driven Power, is Here to Stay.For Example, New Solar Capacity Rose 50% in 2016.

Source: SolarPowerEuropepartnership

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According to U.S. EPA, There is No Shortage of Brownfield and  Landfill Site Acreage Which Could be Suitable for Renewable Energy.

Over 400,000 identified  Brownfield sites in the  United States

16 million acres are  available for development  of renewable energy

That’s enough land to  generate approximately  3,175,000MW

(For reference, the Hoover  Dam generates about 2,000  MW)

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California Has 1,000’s of Acres of Closed Landfill Space & Brownfield  Sites. This Acreage Can be Repurposed into MW‐Scale Solar Power  Installations.

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Blower &FlareStation

Power Generation via GasTurbine or Steam Cycle Systems

Waste/ Complex Organics

Organic Acids

Landfill Gas

Landfill Gas Collection Wells inWaste

Other LandfillMonitoring Systems (e.g. for groundwater)

BreakdownProcess of LandfillWaste

Typical Landfill 20 to 200 acres

Perforated Gas Pipe

Methane and Carbon Dioxide

Methane and Carbon Dioxide

Landfill Gas-to-Power

Landfill gas (LFG) migrates to waste prism extraction wells and the associated collection systems. The LFG is conveyed via a network of pipes to feed a power generation plant.

Urban Located Landfill or Brownfield Sites Possess  Significant Attributes for Repurposing into Renewable  Power Installations…

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Methane and Carbon Dioxide

Methane and Carbon Dioxide

Blower &FlareStation

Power Generation via GasTurbine or Steam Cycle Systems

Waste/ Complex Organics

Organic Acids

Landfill Gas

Landfill Gas-to-Power

Landfill gas (LFG) migrates to waste prism extraction wells and the associated collection systems. The LFG is conveyed via a network of pipes to feed a power generation plant.

PV Solar PowerA photovoltaic (or PV) cell is a specially treated wafer of silicon, sandwiched between two thin contact plates. The top contact is positively charged and the back contact is negatively charged, making it a semiconductor.

• The n-type semiconductor has an abundance of electrons, giving it a negative charge, while the p-type semiconductor is positively charged.

• Electron movement at the p-n junction produces an electric field that allows only electrons to flow from the p-type layer to the n-type layer.

• When sunlight hits the solar cell, its energy knocks electrons loose from the atoms in the semiconductor.

• When the electrons hit the electrical field, they’re shuttled to the top contact plate and become a usable electric current.

• PV panels are mounted in racking systems specially designed to accommodate landfill-specific requirements such as “no cap damage” and “waste settlement.”

A typical racking module is 10ft. By 20ft. and generates 2.5kW. This translates to about 1MW from every 3-5 acres.

Photovoltaic Cell Detailed cross-section

SolarPanelGlass covering

Transparent adhesive

Anti-reflection coating

Not toscale

Electric Current

DC/AC Inverter Necessary to convert electric current for consumeruse

PerforatedGas Pipe

UtilityCompany

Solar Power to theGridExcess energy from the solar array is fed into the power grid. It helps provide extra electricity to the community, especially during peak daytime hours.

Customers

SolarPanels

The sun gives off

about 400 trillion watts

of power

Landfill Gas Collection Wells inWaste

Other LandfillMonitoring Systems (e.g. for groundwater)

…Flat Acreage, Close to Load and Interconnect, Putting  Otherwise Unusable Acreage Back to Use.Projects are Technically Straightforward…but Administratively Complex.

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How to Do It.  Development Logistics.

STEP 1Letter of intent with  site owner

STEP 2Perform a detailed  project economic/FS  analysis

STEP 3Deal structuring Land Owner: Straight land  leasing to “some form of  participation” in powersales

Financing: Debt v’s equity

STEP 4Power Purchase  Agreement (PPA)  negotiationswith  power off‐taker

STEP 5Project financing

STEP 6Complete  agreements and  environmental  studies

STEP 7Design / Build

STEP 8Start up and long  term operations

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Key Criteria Renewable Power Installation Development.

Environmentally  Impacted Land  (Restricted  Future Use)

AppropriateGeographicLocation

Land Control(Title or Long‐TermLease)

Nearby  Interconnection  

Point

Adjacent Load  (PPA Approach)

State‐Mandated  Renewable  Portfolio  Standards

Green Corporate  Goals

Project  Financing• External• Internal

Technical & Economic Feasibility for a Brownfield Site

to Host a Solar Renewable Power

Installation

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Case Study: PVN Has Taken About 4 Years to Go from Concept to an  Installed Solar Power Facility at the Milliken Landfill, Ontario, CA…

Key Facts Racking of 9,500 X 335W solar panels Ballasted ground mount; No cap penetration 6 X 500 kW inverters 6 X 500 kVA step‐up transformers 12.5kV AC switchgear for metering and  interconnect to SCE 50‐60 construction personnel at peak times Forecasted operation by December, 2016 System owned and operated by PVNavigator

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…Deal Structuring and Permitting Took 10 Times Longer  Than PV Installation Construction…

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…A Total of 9,500 PV Modules Were Racked for the 3.1MW  Solar Power Installation…

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…Which, Finally is Operating Synergistically With the  Landfill’s Remedy.

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Project Navigator, Ltd. is Also Evaluating the Feasibility of PV Developments on Underutilized Airport Space.Example: Monterey Regional Airport, California

Objective & Scope• On behalf of MRY, PNL has assessed PV Solar power generating

options.

• Information provided was limited to:o Development Map showing Zones I to IV

o Meter Locations Map

o Excel Spreadsheet of Costs paid to PG&E per meter per month

Evaluations• PNL used Google Earth mapping tools and solar irradiation

intensity maps to comparatively assess an optimal location to site a fixed tilt, rack mounted, PV Solar array.

• We have ruled out roof tops. (This statement is made on the basis of there being sufficient space for ground mount available, and the general risk that large span airport-type structures may require strengthening to support roof mounted panels).

• Among the ground locations options we have selected, the western half of Zone III is considered optimal (the area is flat and devoid of significant vegetation, and has a south facing aspect). The location has a small negative of being on the far side of the main runway, thereby distant from the main airport load at the terminal building.

Computations• As shown opposite, the acreage available would permit the

development of a range of sizes of PV facilities.

• We have termed them S-M-L at 1.25, 2.0 and 5.0 MW DC, respectively.

• The 1.25 MW system will generate 1,625,000 kwh/year, which approximately matches the Airport’s present power consumption.

Development Options• Airport can self-develop a 1.25 MW system.

• Very preliminary calculations purely for early guidance purposes indicate that if the system can be built for approximately $5/watt (i.e. a $6 to $6.5MM investment) then the Airport could save $0.7MM over a 20-year lifespan Vs paying PG&E for power at 13 cents/kW-hr for these same 20 years.

• Airport can also lease the larger acreage space in Zone III • PNL’s sister company, PVNavigator, LLC would enter into a long-term lease (20

years+) to develop the larger (5 MW?) solar project. The Airport could receive a combination of revenue from the lease, possibly a share of power sales profits and power at a rate competitive with PG&E.

1.25 MW DC, PV Plant Boundary2 MW DC, PV Plant Boundary5 MW DC, PV Plant Boundary

Aerial View of Monterey Regional Airport, Showing Proposed Location for Siting a PV Solar Power Installation

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TAKE‐AWAYS:1. EPA/NREL Have Published Excellent Guidance.

(e.g. “Best Practices for Siting PV Solar on Landfills”)

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TAKE‐AWAYS:

Project financing at an acceptable return Offtaker’s purchase price Interconnect studies costs Landfill post‐closure permitting

(Only) Scores  of Projects  Realized in  California

2. Site Opportunities are Plentiful. Willing site owners Capitalize on existing interconnect Declining $/watt construction costs State and EPA “encouragement”1,000’s of sites

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TAKE‐AWAYS:3. Multiple Skill Sets Required.

SOLAR POWER EXPERTISEElectrical Engineering,  Project Cost Projections

PROJECT FINANCING & LEGALDeal Structuring  ContractsRiskMitigation

LANDFILLS/CAPS AND SITE  MANAGEMENT EXPERTISEEnvironmental Engineering  PermittingCEQA

OPTIMAL  TEAM

Integrates all  3 capabilities

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Sustainable Solutions for  Environmental Liabilities

Project Navigator, Ltd.www.ProjectNavigator.com

• Project Management• Landfills• CERCLA &RCRA• Data &Viz

PVNavigator, LLCwww.PVNavigator.com

• Utility‐scale PV solar power  developments

• PV solar on landfill sites• Site sourcing• Interconnect & Offtake  Analysis

• Permitting

Alturus Strategic  Capital Partners

www.AlturusCapital.com

• Project financing• Deal structuring• PV portfolio oversight• Project economics

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