The Power of Water January 2010 - nwhydro.org · Inlet structure, trash rack, energy dissipation...
Transcript of The Power of Water January 2010 - nwhydro.org · Inlet structure, trash rack, energy dissipation...
The Power of Water
January 2010
Locations with
Hydroelectric
Potential
KEY FACTORS
• Elevation Drop
• Amount of Flow
• kWh Pricing
• Cost of Project
• Other Benefits
• Potential Partners
• Funding Sources
• Interconnection
Existing
Hydroelectric
Facility
The Power of WaterJanuary 2010
How much power can be generated?
h * Q * 85% / 11.8 = kilowatts capacity
kilowatts * Days of Operation * 24 = kwh
How much money can be generated?
Kwh * $.06 = $ per year generated
How much financing can that fund?
$ per year generated – annual costs = payment capacity
6% financing over 20 years
How much to build the facility?
Pipe costs, building, turbine-generator-switch
How close to utility for interconnection?
Do you know what FERC means?
Do you know anyone at your state PUC?
What is the zoning of your potential site?
Does this thing generate positive cashflow?
The Power of WaterJanuary 2010
Putting the Financial Pieces Together At 10,000’
Tax Credits – State and Federal
Business Energy Tax Credit – ODOE
Calculate 30% of 85% of your project cost
Production Tax Credits with Private Partners
Funding Opportunities
Energy Trust of Oregon – Utility Incentives
Renewable Energy Loan Programs
Clean Renewable Energy Bonds (CREBs)
Other grant sources for renewables?
Rural development
Regional Infrastructure funds
The Power of WaterJanuary 2010
Where’s the Sugar?
Any water conservation?
Conserved water for instream or additional lands to irrigate
Any O&M costs eliminated?
Any cost savings to someone else?
Pressurized water to patrons that reduces pumping
No need for bridges on new road being planned
Any benefits to someone else?
Piped waterway now creates opportunity for trails
Easement reduction provides more developable land
The Power of WaterJanuary 2010
Identify Other Benefits
• 2.5 Miles – Main Irrigation Canal
• 9’ Steel Pipe
• 20 cfs Conserved Water Savings
• 3.3 MW Generating Capacity
• 5 MW built capacity
• $24 MM Project Costs
• Multiple Benefits & Beneficiaries,
& Funding Sources
• Capability to pipe upstream 4
miles and add 4 MW of power
• Each mile of additional pipe
generates 10 cfs for instream
JUNIPER RIDGE HYDRO
The Power of Water
January 2010
The Power of Water
January 2010
JUNIPER RIDGE HYDRO
Total Project Costs - $24MM
Pipe, excavation, fill, clearing, landscaping
Mobilization, insurance, bonds
Inlet structure, trash rack, energy dissipation system
Turbine, generator, switch gear & installation
The building, landscaping, lighting
Grid interconnection
Development costs – legal, permits, licensing, design
Debt service and major mechanical reserves
Financing costs, construction period insurance
Environmental Impact mitigation
Add 10-15% contingency
Regulatory surprises – other factors out of your control
JUNIPER RIDGE HYDRO
The Power of Water
January 2010
Total Financing - $24MM
BETC $ 4,365,000
ETO $ 1,000,000
OWEB, BOR, CWSRF $ 6,250,000
COID Cash Equity $ 2,289,000*
Total $13,904,000
Remainder $10,096,000
Whose your daddy? – ODOE $10,946,000
Small Energy Loan Program (SELP)
18 Year long-term loan
5-9% Rate of Return to COID
The Power of Water
January 2010
ALTERNATIVE STRUCTURES
Private Party Financing
It’s all about financial rate of return
Rate of return expectations higher than for municipal entity
Income taxes & property taxes
Incentives available to private party – PTCs and depreciation
Contract and performance driven
Ownership Structure
Private ownership for range of 10-15 years
Ownership “flips” to Municipal Entity
Municipal entity usually operates and maintains
Oregon Public Sector Statutes
Limitations apply and Project Agreement structure important
The Power of Water
January 2010
FRUITS FROM THE EFFORT
Siphon Power Plant
Fully owned by COID
On line producing revenue since 1989
Funded through ODOE SELP
Debt obligation paid off in 2014
Total revenue to date $39MM
Average revenue per year $2MM
Average “surplus” to COID per year $400K
Offsets assessment increases to patrons
Funds irrigation infrastructure capital projects
After debt paid off – annual surplus to be $1.5MM+
JUNIPER RIDGE PROJECT
JUNIPER RIDGE PROJECT
JUNIPER RIDGE PROJECT
TIME FRAME:
October 6, 2009 Construction Begins
April 1, 2010 Piping Complete
September 6, 2010 Hydroelectric Complete & Online
MANUFACTURERS:
James Leffel & Company, Ohio
NW Pipe Company, Oregon
Ideal Electric Company, Ohio
JOBS:
115 Jobs Created or Sustained
TOTAL PROJECT COST:
$24,000,000
WATER:
19.6 CFS of Water Permanently into The Deschutes River
Improved Water Quality (river temperature decreases)
POWER:
13 Million KWH of Green Power Produced Per Year
Which annually displaces 4,550 tons of carbon dioxide produced by
Coal Plants and 2,600 tons of carbon dioxide produced by Natural Gas
1,300 Homes will receive electricity from this project
STATE OF OREGON
Department of Energy
Department of Environmental Quality
Oregon Watershed Enhancement Board
DESCHUTES RIVER CONSERVANCY
U.S. BUREAU OF RECLAMATION
ENERGY TRUST OF OREGON
CITY OF BEND
PELTON FUND
Portland General Electric/
Confederated Tribes of Warm Springs