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HomeMy WebLinkAboutMinutes - August 18, 2009 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, AUGUST 18, 2009 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, August 18, 2009, commencing at 7:02 a.m. Present: Council Member Hitchcock, Council Member Johnson, Mayor Pro Tempore Katzakian, Council Member Mounce, and Mayor Hansen Absent: None Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl B. Topic(s) B-1 Electric Utility Presentation on Solar Photovoltaic Technology (EUD) City Manager King briefly introduced the subject matter of the solar energy report. Electric Utility Director George Morrow provided a PowerPoint presentation regarding the solar energy report. Specific topics of discussion included solar concentrating, solar photovoltaic, solar thermal "trough," sterling system, solar tower, photovoltaic history, how photovoltaic works, simple photovoltaic schematic, solar potential, photovoltaic growth, solar economics, "high gain" photovoltaic, renewable standards, California Energy Commission eligible renewables, solar in Lodi today, photovoltaic demonstration, proposals, proposed photovoltaic site near White Slough, community benefits, grapes and photovoltaic, project evaluation factors, and summary of solar energy possibilities for the City. In response to Mayor Hansen, Mr. Morrow stated Sacramento Municipal Utility District did its project near Rancho Seco several years ago and it probably started as a demonstration of sorts. In response to Mayor Hansen, Mr. Morrow stated concerns to surrounding property owners for reflection and aesthetics and issues of the site being along the freeway are minimal based on experts who have reviewed the proposed site. In response to Council Member Hitchcock, Mr. Morrow stated generally these types of projects are done by private parties from the outside who provide turnkey products and take care of the permitting and operations themselves. Mr. Morrow stated the process would include request for proposals, evaluation of bids and award, a consultant is not involved at this point to evaluate bids as staff should be able to evaluate the incoming bids, the City only pays if it gets electricity which serves as the incentive for the developer to construct a good project, and it is anticipated that the City should receive a good amount of interest in the proposed project. In response to Council Member Mounce, Mr. Morrow stated at the end of the 25 -year term of the agreement, if the City has not purchased the project, the developer would need to remove everything and return the site to the original condition. Mr. Morrow stated the cost of purchasing the project is based on what the market value is at the time of sale. Mr. King stated the option to purchase is seen as a benefit to the City because it can purchase the project dependent upon what the given price is at the time of purchase. Mr. King stated prices also vary depending upon how much energy is purchased. In response to Mayor Pro Tempore Katzakian, Mr. Morrow stated the life span of a similar Continued August 18, 2009 project is averaging 25 years, although some projects have certain elements that can be replaced because technology is advancing so quickly. In response to Council Member Mounce, Mr. Morrow stated he will research and provide a ball park figure purchase price for the proposed project by the next City Council meeting in the event that the City should desire to purchase the project in five years. In response to Council Member Johnson, Mr. Morrow stated the City is party to the green pool for Northern California Power Agency (NCPA), research is continuing into those options, and the proposed project for the City is too small for NCPA. Discussion ensued between Mayor Hansen, Mr. King, and Mr. Morrow regarding solar projects in differing agencies and communities and the ongoing efforts to continue incorporating additional solar energy into the communities. In response to Mayor Hansen, Mr. Morrow stated the flat panel technology works in creating energy with both direct and indirect sunlight, while high efficiency solar rays generally use focusing technology through panels. In response to Mayor Hansen, Mr. Morrow stated State law created some solar requirements through Senate Bill 1, which also includes a rebate program. Mr. Morrow stated by 2012 buyers will have an option to include solar energy in their newly developed homes, although Roseville may have some new construction requirements for solar already because it has made significant investment and progress in the area of solar energy. In response to Mayor Hansen, Mr. Morrow stated that, while some thought has been given to wind energy, there does not appear to be enough wind geographically in the area to sustain long- term wind energy generation. In response to Mayor Hansen, Interim Community Development Director Rad Bartlam stated that, while there has been some interest locally in residential windmills, the idea is not prevalent due to the suggestion that a large pole and windmill be placed in the front of a home. In response to Mayor Hansen, Mr. Morrow stated NCPA and the City, as a member of NCPA, continue to look at wind at the geothermal site and toward the northwest areas. In response to Mayor Hansen, Mr. Morrow stated the long-term issue of concern is solar and wind storage, which continues to evolve. In response to Council Member Johnson, Mr. Morrow stated the proposed project will take approximately two acres near the White Slough facility. In response to Council Member Johnson, Mr. Morrow stated the proposed project will be a relatively small part of the energy usage for White Slough, although there may be potential for more in the future. Myrna Wetzel spoke in favor of the proposed solar energy project, stating she is generally in favor of the City utilizing solar energy. C. Comments by Public on Non -Agenda Items None. D. Adjournment N Continued August 18, 2009 No action was taken by the City Council. The meeting was adjourned at 7:56 a.m. ATTEST: Randi Johl City Clerk 8- 1 CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Electric Utility Presentation on Solar Photovoltaic Technology (EUD) MEETING DATE: August 18,2009 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Receive presentation by the Electric Utility Director regarding the status of solar photovoltaic technology and the potential for demonstrating such technology at a City -owned facility. BACKGROUND INFORMATION: Significant world-wide progress has been made over the last five years toward making solar energy resources a viable electric utility scale resource technology. 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 "A C through use of an inverter. Photovoltaic cells are most oflen mounted at an angle and face south in order to 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. 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 (see attached map). 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. Staff feels the Council may particularly be interested in the field of green jobs and green manufacturing. The Governor has stated on a number of occasions that green jobs will be a significant source on new employment. We have an interest in increasing our visibility as a community open to green jobs. A viable solar project will help in this regard. APPROVED: Blai n ity Manager Electric Utility Presentation on Solar PhotovoltaicTechnology (EUD) August 18,2009 Page 2 of 2 Further background on solar photovoltaic technology ae�dlpote tial demonstration at a City -owned facility will be provided at the meeting. George F. Morrow Electric Utility Director 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 Lodi Electric Utility City Council Shirtsleeve August 19, 2009 Solar Technologies • Solar Concentrating (Thermal) — Trough —Dish/Sterling — Power Tower • Solar Photovoltaic — Wafer -based Crystalline Silicon —Thin Film — Concentrating 2 iL -* �4k z'"..r y -t� ri ` _Nn yj � r � Ir .� • — - -- � -ter � • r —' —r-- y l� l rl :1 � Y �,r T • -�-= 7 _ Solar Photovoltaics UD's 2 magawalt solar plant neer warm Saco 0 Solar Photovoltaics • Photovoltaic ("PV" for short) is the word that describes converting sunlight into electricity • "Photo" means pertaining to light • "Voltaic" means producing voltage 7 PV History • In 1839, Alexandre Bacquerel discovered that certain materials produced small amount of current when exposed to sunlight • In 1876, William Adams discovered that a solid material - selenium — produced electricity from light. Only 1-2% efficient • In 1954, Bell Lab scientists patented a way to make electricity from silicon -based cells • In 1955, the first commercial PV product was announced. 2% efficient, $1785 per watt • By mid -1960's, PV efficiency neared 10 percent • In the 60's and 70's, the Space Program greatly accelerated PV development 0 How Does PV Work? • Sunlight is made ofhp otons (particles of solar energy) • Typically, two types of silicon (P type and N type) are sandwiched together in a solar panel • When light (photons) strike a solar panel, electrons are displaced from the silicon atoms creating a flow or electric current • The resulting current is direct current (DC) which can be converted to alternating current (AC) with an inverter • PV cells are mounted at an angle and face south in order to increase amount of sunlight captured • Tracking systems and concentrating mirrors can be used to sunlight levels. 0 Simple PV Schematic 10 gar Solar Potential 11 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 ? 12 Solar Economics •Prices for new PV solar energy vary but generally in the 12 to 20+ cents per KWH range • Pricing still on the high side compared to other electric technologies • Energy is high value since typically level of sunlight correlates well with electric demand/prices • Impact of solar "transients" may be problematic from an electric system operations standpoint once solar penetration levels increase. 13 lip= mfm ll IWAR F F 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 25% qualified renewable PG&E 11.9% SCE 15.5% SDG&E 6.1% 15 CEC Eligible Renewables (Data based an 2008 Power to Source Qisclmre Program 0 60%Annual Reports) 3 55% c 50% o 45% 40% Q 35% Q1 3Q% 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 16 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 17 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 18 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 19 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. 20 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 21 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 22 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 24 Summary • Solar energy is rapidly becoming a viable electricity producing technology • Presently, residences and businesses have installed over 500 KW of PV solar • Proposed solar demonstration project at White Slough would be first solar at City facility (other than EUD vehicle charging) • Site would be highly visible from I-5 and promote Lodi as " green friendly" 25 Questions/Comments? 26