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Home My WebLink AboutAgenda Report - August 19, 2009 K-0514405 CITY OF LODI ,. COUNCIL COMMUNICATION Im AGENDA TITLE: Approve Issuance of Request for Proposals for Turnkey Solar Demonstration Project at the White Slough Water Treatment Control Facility (EUD) MEETING DATE: August 19,2009 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Approve issuance of Request for Proposals for a turnkey Solar Demonstration Project at the White Slough Water Treatment Control Facility. BACKGROUND INFORMATION: Significant progress has been made over the last five years toward making solar energy resources a viable electric utility scale resource technology. Staff is proposing that the City solicit proposals for the installation, operation and maintenance of a relatively large scale solar project at its White Slough Water Treatment Control Facility. Some of the benefits of such a project include: • Showcasing a renewable energy project at a site adjacent to and visible from Interstate 5; • Obtaining experience with solar energy technology; • Exploring the economics of solar energy systems available today; • Helping to demonstrate innovative renewable energy technologies and promoting eventual product commercialization and enhanced economics; and • Enhance Lodi's reputation as a community welcoming new green businesses. The proposed site would be a triangular parcel owned by the City which is adjacent to 1-5. This site has the potential for 100 to 300 kilowatts of installed solar capacity. The projectwould be "behind the meter' of the treatment plant at White Slough and the electricity generated by the projectwould reduce White Slough's demand on Lodi Electric Utility (LEU). Some of the key parameters of the Request for Proposal are: • Projects are to use solar photovoltaic technology and may be fixed or tracking and flat panel or reflecting • Projects would be turnkey. The Proposer is responsiblefor all aspects of the project including permitting, financing, installation, operation and maintenance; • An in-servicedate priorto June 1, 2010 is preferred; • Term would be 25 years with an option for the City to buy (and operate) the project any time after five years at a predetermined price or formula; • Minimum size would be 100 KW. Maximum size would be dictated by the limits of the site; • Purchases would be made pursuant to a negotiated Power Purchase Agreement (PPA); • Preferred pricing approach would involve an initial year price (cents/kilowatt-hour) with an annual escalation rate, if any; APPROVED: l BlairXzincf, City Manager Approve Issuance of Requestfor Proposals for Turnkey Solar Demonstration Project at the White Slough Water Treatment Control Facility (EUD) August 19,2009 Page 2 of 2 • Lodi Electric Utility would be granted all environmental and capacity attributes associated with the projectto include, but not be limited to, greenhouse gas credits/allowances, air quality credits/allowances, renewable energy credits, resource adequacy capacity, local resource capacity, etc; • LEU would be responsibility for relocating a power pole on the site if it interfereswith a proposed project; • The purchaser of the solar energy would be the City of Lodi's White Slough treatment facility. • The Project would be eligible for a California Solar Initiative (CSI) Rebate from LEU as per the utility's rules and regulations regarding the CSI that are then in effect. It is expected that the rebate would be provided to the customer, not the Proposer. • The Project would comply with all terms and conditions related to interconnection with LEU. • Proposer will assist the City in showcasing its solar project and promoting the location of green technology businesses and jobs in Lodi. Project signage would be as mutually agreed. In addition to considering responsesto the solar RFP, LEU will also be reviewing solar photovoltaic proposals from its participation in the Northern California Power Agency Green Power Pool. The details of such solar energy purchase arrangements are still under development. Proposals will be evaluated based on which proposal is judged to provide the most benefitto the City of Lodi. Price will only be one element of the evaluation. For a recent twelve month period, the monthly annual electric demand by the White Slough treatment facility is between 800 and 900 kilowatts (KW). The total electricity consumption during this 12 -month period was about 7 million kilowatt-hours (KWH) resulting in an annual bill of about $500,000. (A 100 KW solar projectwill typically contribute 200,000 KWH or less.) Solar photovoltaic technology is one which uses silicon semiconductor material to produce electricity. Typically, two types of silicon (P type and N type) are sandwiched together in a flat plate solar panel creating a collectorthat is sensitive to sunlight. When light (photons) strikes a solar panel, electrons are displaced from the silicon atoms and flow if the panel is part of a closed circuit. The flowing electrons create a direct "DC" electrical current. The DC current is transformed into alternating current "AC" through use of an inverter. Photovoltaic cells are most often mounted at an angle and face south in orderto capture the maximum amount of direct sun. To increase output (at a higher installed cost), solar cells can also be placed on tracking systems that follow the sun to maximize the amount of solar energy captured. Another type of solar array is one designed to concentrate sunlight. These concentrating collectors use a lens or a glass reflecting surface to concentrate more sunlight onto the silicon cells. Attached are maps showing the location of the proposed project site. FISCAL IMPACT: Electricity generated by the solar project will reduce conventional electricity purchases incurred by White Slough at little or no additional cost. FUNDING AVAILABLE: The cost of purchasing electricity from the successful solar proje "I be paid from the Wastewater Utility's erating budget. Jordan Ayers GWrge F. Vorrow Deputy City Manager/internal Services Director Electric Utility Director Fairfield Rio Vista Elk Grove LOQ Stockton i II 1 � , IL v 4 � ti 7WHITELOUGH WATER POLLUTION CONTROL PLANT 12 . r PROPOSED SOLAR PROJECT SITE WHITE SLOUGH WATER POLLUTION CONTROL PLANT i Paget_ 1 of 3 PROPOSED SOLAR PROJECT SITE ,5. � 4 ' fi PROPOSED SOLAR PROJECT SITE WHITE SLOUGH WATER POLLUTION CONTROL, PLANT PROPOSED SOLAR 480V CONNECTION POINT, LOCATION #1. PROPOSED SOLAR 480V CONNECTION POINT, LOCATION #2. WHITE SLOUGH OFFICE Page: 2 of 3 a RIO VISTA 12 LODI > n � WHITE SLOLGH WATER POLLUTION CONTROL PLANT r DRIVING DIRECTIONS: LEAVING LODI, WEST ON HIGHWAY 12 TO THORNTON ROAD. TURN LEFT AND CONTINUE SOUTH ON THORNTON ROAD. TURN RIGHT ON THE 1-5 FRONTAGE ROAD HEADING WEST TO TRAVEL UNDERNEATH 1-5. TURN LEFT ON TO THE ACCESS ROAD, HEAD SOUTH AND TURN RIGHT, GO THROUGH THE WHITE SLOUGH WATER POLLUTION CONTROL PLANET MAIN GATE. PARKING IS ON.THE LEFT. PROPOSED SOLAR PROJECT SITE WHITE SLOUGH WATER POLLUTION CONTROL PLANT o & e�ipwra �a4l a,c.l�-wo�ap�,wmre s��y6nlwnres��-sawn �a Pl—d : A li, moo -ice A r Page: 3 of 3 Lodi Electric Utility City Council August 19, 2009 Solar Technologies • Solar Concentrating (Thermal) — Trough —Dish/Sterling — Power Tower • Solar Photovoltaic — Wafer -based Crystalline Silicon —Thin Film — Concentrating 2 Solar Photovoltaics • Photovoltaic ("PV" for short) is the word that describes converting sunlight into electricity • "Photo" means pertaining to light • "Voltaic" means producing voltage 3 How Does PV Work? • Sunlight is made ofhp otons (particles of solar energy) • When light (photons) strike a solar panel, electrons are displaced from the silicon atoms creating a flow or electric current • The result is direct current (DC) which can be converted to alternating current (AC) with an inverter 4 Simple PV Schematic 5 gar Solar Potential 0 PV Growth F1gum 2.1: Gktwl cmdff f e PAS mpm t!r m" 39-41 Filfii-j--1 MIS2 2M 940 115D 1426 0 0 0 0 1111111111 1994 19M 1996 1997 19M 1999 2000 2001 ? 7 Solar Economics •Prices for new PV solar energy vary but are generally in the 12 to 20+ cents per KWH range • Pricing/cost is still on the high side compared to other electric technolo $sem • Energy is high value since typically level of sunlight correlates well with electric demand 0 Renewable Standards (RPS) • Current law requires private electric utilities to be 20% renewable by 2010 • Pending state legislation proposes to increase RPS to 33% by 2020. • Lodi is approximately 2 renewable today 5% qualified 0 CEC Eligible Renewables (Data based an 2008 Power to Source Qisclmre Program 0 500/a Annual Reports) 3 55% c 50% o 45% 40% Q 35% Q1 300/0 FU 25% W 20% [.� 15% a 10% 5% CD soon 0% m oy v . c Q .� �`� , � v� yam �U . o ��, �� . o ❑ a & o �� ' afi . mho-� �� m m �� m v - - _Cz- a IL - U o � �� ❑ ��m ❑ m C7 w ❑ tri ��° 0 o Q o�a� Q 0.0 � �.'� ¢`� 4�. mD o�. o� �Qm =� ��'�� v�. ��._ ° °�. U bra Cj • ,� �' C U� .-� U C] v o mF 10 Solar in Lodi Today • Residential — 25 Systems — 105 kilowatts total • Commercial — 11 Systems — 475 kilowatts total Clark Pest Control 166 KW Dependable Precision 132 KW Plug -It Products 73 KW Note: Lodi Electric Utility has rights in -200 KW of solar installed at the Geysers and operated by NCPA 11 Lodi PV Demonstration • Staff is proposing a PV demonstration project at a Lodi City facility • White Slough Water Treatment Facility • Qualifies for EUD I s California Solar Initiative Rebate (presently $2.60 per watt) • Goal to be a "showcase" project with community benefits 12 Proposals • Must use photovoltaic technology — Fixed or tracking — Flat panel or reflecting • Turnkey projects • City to provide land • In-service by June 1, 2010 • 25 year term with option for City to purchase system after 5 years • Minimum 100 KW. Maximum is site dependent 13 Proposals (cont) • Purchases made under Purchase Power Agreement (PPA) • Preferred pricing of flat O/KWH with annual escalation, if needed • EUD to receive all GHG, RPS and capacity attributes/credits Wastewater division to retain solar rebate Project will comply with EUD's metering and interconnection requirements. 14 Proposed PV Site PROPOSED SOLAR 480V CONNECTION POINT, LOCATION M. PROPOSED SOLAR 480V CONNECTION POINT, LOCATION #2. PROPOSED SOLAR PROJECT SITE WHITE SLOUGH WATER POLLUTION CONTROL PLANT Page: 2 of 3 15 Community Benefits • Visibility of project and signage from I-5 • Promoting Lodi as a "green friendly" to new or relocating businesses in that sector • Potential for future addition of new jobs • Use of Lodi materials and labor on solar project where practical • Providing societal value by demonstrating and supporting innovative technologies • Reduction of green house gases 16 i L f l S • L - - - r I 1 1 l Project Evaluation Factors • Award based on project evaluated to be in the best interest of City • Pricing and economic impact of energy purchase • Innovativeness and efficiency of proposed solar PV technology • Experience and capability of bidder • Buy-out option terms • Other Purchase Power Agreement terms • Proposed community benefits 18 Summary • Solar energy is rapidly becoming a viable electricity producing technology • Presently, local residences and businesses have installed over 500 KW of PV solar • Proposed solar demonstration Slough would be first solar at a than EUD vehicle charging) project at White City facility (other • Site would be highly visible from I-5 and promote Lodi as " green friendly" Staff recommends approval to issue a RFP for solar 19