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Pragmatic Advice from the Frontlines of Landfill-Located Solar Power Energy Projects: Part II
1 Pointe Drive, Suite 320Brea, CA 92821714.388.1800
www.PVNavigator.com | www.ProjectNavigator.com
By:Ian A. Webster, Sc.D.
Presentation to U.S. EPA Region V Staff
July 25, 2013
PV Navigator, LLC, Brea, CA 92821
Chicago, IL
To Be Clear, We Are Not Discussing the Development of Desert-Located, 500-Acre, $300MM+ Projects…
2 to 10 MW Solar Facilities are Designed to be Compatible and Integrated with the Landfills’ Gas, Leachate, Storm Water Management and General Monitoring Systems.
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Key Criteria for Landfill-Located PV Solar Installation Development.
Environmentally Impacted Land (Restricted Future Use)
Appropriate Geographic Location
Land Control (Title or Long‐Term Lease)
Nearby Interconnection
Point
Adjacent Load (PPA Approach)
State‐Mandated Renewable Portfolio Standards
Green Corporate Goals
Project Financing• External• Internal
Applicability of Golden Eagle
Refinery WMUs to Host PV Solar Installation(s)?
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Tip 1: Try to Parallel Track Development Logistics to Conserve Cash Flow
STEP 1
Letter of intent with site owner
STEP 2
Performs a detailed project economic analysis
STEP 3Deal structuring County: Straight land leasing to “some form of participation” in facilitiesFinancing: Debt v’s equity
STEP 4
Power purchase agreement negotiations with off-taker
STEP 5
Project financing
STEP 6
Complete agreements and environmental studies
STEP 7
• Design / Build
STEP 8
• Start up and long term operations
• Synergize and liaison with landfill operations
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Tip 2: Sites: 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 3,175,000 MW
(For reference, the Hoover Dam generates about 2,000 MW)
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Landfills are Abundant in Metropolitan Areas. Here, Los Angeles County.
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Industrial America Has SitesPr
ojec
t Com
plex
ity
Sell mature, low-risk sites Reduce size of portfolio Focus resources on higher
risk sites
Redevelop with a partner to control risk Minimize future costs and
cash outflow
Reuse the land Leverage site “resources”
Timeframe of Future Chevron Involvement with the SiteShort Medium Long
Portfolio Sale Economic Revitalization Beneficial Reuse
Mature Site
Urban Setting
Wind farms, solar field, gas generation, etc.
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Tip 3: Run the Economics. Installed PV Solar is Expected to Drop from $3/Watt Today to $2/Watt by 2014.
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Cost per watt from 1980 – 2009 (log scale)Cost per watt from 1980 - 2009
Projected solar cost per watt to 2030 Projected solar cost per watt compared to 2009 US average electricity cost
Reference: http://www.scientificamerican.com/blog/post.cfm?id=smaller-cheaper-faster-does-moores-2011-03-15| 9
The Landfill Sites Should Preferably be Located in a State Which Has an Aggressive Renewable Portfolio Standard (RPS).
Renewable portfolio standardRenewable portfolio goal
www.dsireusa.org / October 2010
Solar water heating eligible *† Extra credit for solar or customer-sited renewablesIncludes non-renewable alternative resources
WA: 15% x 2020*
CA: 33% x 2020
NV: 25% x 2025*
AZ: 15% x 2025
NM: 20% x 2020 (IOUs)10% x 2020 (co-ops)
HI: 40% x 2030
Minimum solar or customer-sited requirement
TX: 5,880 MW x 2015
UT: 20% by 2025*
CO: 30% by 2020 (IOUs)10% by 2020 (co-ops & large munis)*
MT: 15% x 2015
ND: 10% x 2015
SD: 10% x 2015
IA: 105 MW
MN: 25% x 2025(Xcel: 30% x 2020)
MO: 15% x 2021
WI: Varies by utility; 10% x 2015 statewide
MI: 10% + 1,100 MW x 2015*
OH: 25% x 2025†
ME: 30% x 2000New RE: 10% x 2017
NH: 23.8% x 2025MA: 22.1% x 2020 New RE: 15% x 2020
(+1% annually thereafter)
RI: 16% x 2020CT: 23% x 2020
NY: 29% x 2015
NJ: 22.5% x 2021PA: ~18% x 2021†
MD: 20% x 2022DE: 25% x 2026*DC: 20% x 2020
VA: 15% x 2025*
NC: 12.5% x 2021 (IOUs)10% x 2018 (co-ops & munis)
VT: (1) RE meets any increase in retail sales x 2012;
(2) 20% RE & CHP x 2017
KS: 20% x 2020
OR: 25% x 2025 (large utilities)*5% - 10% x 2025 (smaller utilities)
IL: 25% x 2025 WV: 25% x 2025*†
29 states + DC and PR have
an RPS(7 states have goals)
DCOK: 15% x 2015
PR: 20% x 2035
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Tip 4: The “Business Space” Needs to be “Tipped,”Via Pilot Projects
??
??
??
? ?
SOLAR POWER PLAN
Tip 5: Tenacity Required…It’s a Long Road from Concept to Operations.PNL’s 2MW Installation at County of San Bernardino’s Milliken Landfill
Tip 6: Blend Multiple Skill Sets Under an “Integrator”
SOLAR POWER EXPERTISE
PROJECT FINANCING CAPABILITIES
LANDFILLS/CAPS AND SITE MANAGEMENT
EXPERTISE
OPTIMAL TEAM
Integrates all 3 capabilities
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Tip 7: Look Behind the Front-Man for Solid Partners. Gestamp Solar (GS) Has a World Wide Presence
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A developer and operator of utility-scale PV plants GS is a business unit of
Corporación Gestamp (20,000 employees) Spanish-headquartered Solar operations in USA,
India, Italy, France, South Africa and Spain Developed over 300MW of
PV Installations Teamed with Project
Navigator, Ltd. for solar-on-landfill developments
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Chevron / Project Navigator, Ltd. Alliance for Developing PV Solar Systems on Landfills
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Example: PNL is Developing a 2 MW PV Facility on the Big Bear Landfill, by Los Angeles, CA. PNL has Entered into a Land Lease with the County, and is Negotiating a PPA with the Local Big Bear Utility.
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The 2 MW PV Installation Will Occupy Space on the Landfill Waste Prism & Soil Cover Borrow Areas.
POST CAPPING
PV INSTALLATION
GENERAL PLAN Pilot a 1-2 MW system on flat top deck
areas Later mine south facing slopes with PV
laminate system, if and as practical
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The Landfill’s Flat Top Deck is Being Prepared to Accept SunPods’ Rack Mounted Arrays.
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Tip 8: Mine Existing Design and As-Builts for Solar Post Closure Development Information
PV Panel Locations Superimposed over Landfill Final Closure Construction Drawings
Final Cover Cross-section at Top Deck. Solar installation will be located on an engineered, geotechnically stable, cover.
Reference: AutoCAD Drawings are from SWT’s “Final Closure Construction Drawings”
Key Big Bear PV Solar Development Metrics
2 MW plant capacity; 3,700 MW-hr per year 950 2.5 kW racked units, 20 ft X 10 ft, each weighing 3,000 lbs 350 units on the landfill’s top deck, augmented by 600 units on
surrounding land All units are prefabricated off of the landfill’s engineered cover Interconnect to adjacent SCE Goldhill transfer station All permitting and design to be completed in 4th Q 2011 PNL has site control from County of San Bernardino via a 2 year,
convertible to long-term, option agreementInterconnection Point (Goldhill
transfer station)
A A’
A
A’
PV panels
Site Boundary
N
Landfill A - A’ cross section. Modules will be located on flat, stable top deck
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Take-Away Tips: Landfills and Brownfield Sites Solar Power Development
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Willing site owners Capitalize on existing interconnect Declining $/watt construction costs State and EPA “encouragement”
Project financing at an acceptable return Offtaker’s purchase price (>13 C/KW-hr?) Interconnect studies costs Landfill post-closure permitting Too many fictitious proposals have
resulted in unrealized projects
Few projects realized
1,000’s of sites
Final Tips: Personal Lessons Learned Not for the faint hearted Team tenacity Partnerships are a must Need to integrate multiple skill sets Tough business space for traditional
consulting firms Define project critical path items at outset,
(e.g. permitting success?) and add a good dose of realism
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Solar Energy Development at the Closed Big Bear Landfill, San Bernardino County
A New Local, Green Power Source Reuse and Development of a Closed Landfill Local Jobs and Procurement During Construction Safe System with No Moving Parts, No Noise, No Waste or Emissions Ecologically Friendly 25 Year Operational Lifetime Low Maintenance Privately Financed
www.ProjectNavigator.com www.PVNavigator.com
For illustration purposes only. Exact design to be determined.
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