Renewable Energy at Closed Landfills June 17, 2009 Jim ChristoMassachusetts Renewable Energy Trust

PRESENTATION OVERVIEWWhat is the MA Renewable Energy Trust?Summary of Commonwealth SolarSummary of Commonwealth Wind Program

THE TRUSTRenewable Energy Trust was established by the Massachusetts Legislature in 1998 to: increase the supply of & demand for electricity generated from clean sources (generate power) promote the development of a Massachusetts renewable industry cluster (generate jobs)MRET has supported over 1,500 projects, companies, and related activities Over $300 million awardedProjects installed in 238+ communities

SOURCE OF FUNDS & ELIGIBLE LOCATIONSSource of funds is a surcharge $24 million/yrOnly customers in investor owned utility service territories:

Massachusetts PV Rebate ProgramCommonwealth Solar

$68 million over ~4 yearsGoal of 27 MW installed by 2012PV market on a trajectory to achieve the Governors 2017 goal of 250 MWEasy application processStreamlined, non-competitive, rollingResults thru May 2009:11.2 MW Installed in MA6.5 MW Awarded Install is pending

Commonwealth SolarCommercial Rebate LevelsRebate based on a cap of 500 kW50% of production must be used onsiteA single Applicant Entity cap = $1,200,000 per CYTiered rebate structure (larger projects that benefit from economies of scale require less rebate per watt)

Commercial Rebates for Incremental Capacity ($ per watt (dc))

Incremental Capacity

First:

1 to 25 kW

Next:

> 25 to 100 kW

Next:

> 100 kW to 200 kW

Next:

> 200 kW to 500 kW

Base Incentive

$3.15

$3.00

$2.00

$1.40

PLUS: Additions to Base

Massachusetts Company Components Adder

$0.15

$0.15

$0.15

$0.15

Public Building Adder

$1.00

$1.00

$1.00

$1.00

Commonwealth Solar Commercial Rebate Levels

Example Project Size (kW) and Rebate

Using Base Incentive and MA Company Component Adder

Project Size

Total Incentive

Rebate Level (~$/watt)

25

$82,500

$3.30

50

$161,250

$3.23

100

$318,750

$3.19

200

$533,750

$2.67

300

$688,750

$2.30

400

$843,750

$2.11

500

$998,750

$2.00

Example Public Project Size (kW) and Rebate

Using Base Incentive, Public and MA Company Component Adders

Project Size

Total Incentive

Rebate Level ($/watt)

25

$107,500

$4.30

50

$211,250

$4.23

100

$418,750

$4.19

200

$733,750

$3.67

300

$988,750

$3.30

400

$1,243,750

$3.11

500

$1,498,750

$3.00

PV Financial Model in MassachusettsCommonwealth Solar

Assumptions:System size:100 kWInstalled cost:$7.00 / WattIncentive:$3.18 / Watt (45% from Comm Solar)Avoided e-:$0.15 / kWhElec. escalator:3%Project life:30 years

Results:Payback:Year 5Est. Return:10%

Commonwealth Solar www.masstech.org/solar 508-439-5700

Step 2: Educate Yourself

http://www.masstech.org/cleanenergy/cando/howto.htm

Commercial Flat Roof MountLarge Onsite Renewables Initiative 24.3 kW

Flat Roof w/ Pitched Mounting Large Onsite Renewables Initiative 117 kW

FLAT ROOF W/ PITCHED MOUNTINGLarge Onsite Renewables Initiative - MIT 40 kW

Commonwealth Wind (CommWind) Program SummaryGovernor Patricks Goal 2000MW by 2020Strategic Plan 3 SegmentsCommercialCommunitySmall or MicroFunding via rebates, grants, loans

CommWindCommercialWholesale projects Multiple turbinesWork with development community to identify sites including state landsSolicitation due in July 2009Offerings:Feasibility study grantUnsecured pre-develoment loansLevels similar to previous Pre-Development Financing Initiative

CommWindMicroUnder 100kWCurrently 1-10kWExpanding to 1-99kW in Summer 2009Replaces Small RenewablesFunding via rebate hybrid:Part based on system capacityPart based on actual production

CommWindCommunity Scale100kW and up50% onsite use of energy or net-meteredTypically 1 or 2 turbine projectsReplaces:Wind portion of Large Onsite RenewablesCommunity Wind CollaborativeFunding for: Site Assessment, Feasibility StudiesDesign & Construction

Community ScaleBlock 1CompetitiveApplications due June 4thUnder reviewBlock 2 Non competitive, rolling Solicitation in late summerSome changes from Block 1

Community Scale Block 1Site Assessment ServicesEligible Applicant = public entities onlyEligible sites:6.0 meters per second @ 70M AGL (effective) per wind mapService performed by MRET consultants at no charge to entityEntity must:Submit a complete applicationAssign primary contactEntity receives:Desktop analysis of potential project siteSite visit Site Assessment Report

Community Scale Block 1Feasibility Study GrantEligible Applicant = any ratepayerEligible Projects >= 100kW & net metered or BTMEligible Sites:Wind speed >= 6.0 mps @ 70 AGL (actual)Setbacks:Local zoning or1.1x max tip height from property lines2.0x max tip height from residencesOtherwise; project support from affected abuttersComplete applications including site assessment

Community Scale Block 1Feasibility Study Grant - continuedFunding Levels

Community Scale Block 1Feasibility Study Grant - continuedProject TimeframesProjects with Met Towers:Obtain Building permit:4 monthsDraft Report:18 monthsFinal Report:21 monthsPublic Biz Planning:30 monthsProjects without Met Towers:Draft Report:6 monthsFinal Report:9 monthsPublic Biz Planning:18 monthsNo exceptions, no extensions

Community Scale Block 1Design & Construction GrantEligible Applicant = any ratepayerEligible Projects >= 100kW & net metered or BTMEligible Sites:Wind speed thresholds @ Hub heights

Setbacks:Local zoning or1.1x max tip height from property lines2.0x max tip height from residencesOtherwise; project support from affected abuttersComplete applications

Community Scale Block 1Design & Construction Grant - continuedFunding Levels

Calculation of Incentives

Non-Public Projects - Design and Construction

42

System Size (kW)Total Project CostOld Rebate$/WNew Rebate$/W% of Costs0.37

100$500,000$200,000$2.00$150,000$1.5030.0%1.5000$150,000$1.50

250$1,000,000$400,000$1.60$310,000$1.2431.0%3.1016$310,000$1.24

600$1,800,000$400,000$0.67$400,000$0.6722.2%4.0004$400,000$0.67

900$2,700,000$400,000$0.44$450,000$0.5016.7%4.4754$448,000$0.50

1500$4,100,000$400,000$0.27$550,000$0.3713.4%5.1599$516,000$0.34

1650$4,300,000$400,000$0.24$570,000$0.3513.3%5.3003$530,000$0.32

2000$7,000,000$400,000$0.20$600,000$0.308.6%5.5977$560,000$0.28

3000$8,400,000$400,000$0.13$600,000$0.207.1%

0.39

801.2314$120,000

1002.0447$200,000

2502.7941$280,000

6003.8091$380,000

9004.4103$440,000

15005.3164$530,000

16505.5064$550,000

20005.9120$590,000

100$150,000$150,000

150$257,000$175,000

200$288,000$200,000

250$310,000$225,000

300$328,000$250,000

350$343,000$275,000

400$357,000$300,000

450$369,000$325,000

500$380,000$350,000

550$390,000$375,000

600$400,000$400,000

100$150,000

125$162,500

150$175,000250

200$200,000500

250$225,0000.5

300$250,000

350$275,000

400$300,000

450$325,000

500$350,000

550$375,000

600$400,000

Calculation of Incentives

000

000

000

000

0

0

0

0

Old Rebate

Turbine Capacity (Kilowatts)

Rebate

Rebate vs. Capacity

Payback

000

000

000

000

000

000

000

Newest

New

old

Turbine Capacity (Kilowatts)

Rebate per Watt of Capacity

Rebate per Watt vs. Capacity

Incentives

Assumptions:

electricity avoided:$0.15per kWh

capacity factor15%

Capital CostAnnual ProductionAnnual SavingsSimple PaybackIncentiveSimple Payback

100$550,000131,400$19,71027.9$150,00020.3

225$1,000,000295,650$44,34822.5$300,00015.8

600$2,100,000788,400$118,26017.8$400,00014.4

1500$4,300,0001,971,000$295,65014.5$400,00013.2

Assumptions:

electricity avoided:$0.15per kWh

electricity esc3%

capacity factor15%

REC0.03

REC term3

O&M1.5%of installed cost

O&M esc2%

discount rate5%

Capital CostAnnual ProductionAnnual SavingsSimple PaybackIncentiveSimple Payback

100$550,000131,400$19,71027.9$150,00022.011with ITC

225$1,000,000295,650$44,34822.5$300,00016.0

600$2,100,000788,400$118,26017.8$400,00014.0

1500$4,300,0001,971,000$295,65014.5$400,00013.0

christo:Same for both Old and New

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Feasibility Study

Non-PublicPublic

BasicWith Met TowerBasicWith Met Tower

100-599kW$20,000$30,000$30,000$60,000

600kW+$40,000$55,000$65,000$95,000

Min Cost Share20%0%

Design & Construction

Capacity (kW)Non-PublicPublic

100$150,000$225,000

225$300,000$450,000

250$310,000$465,000

600+$400,000$600,000

Min Cost Share25%0%

* need to update amounts to include a Design subsidy also

1.501.5

Community Scale Block 1Design & Construction Grant - continuedProject TimeframesFile applications for all major permits:6 monthsPublic entities Issue RFP for construction:12 monthsExecute all construction contracts:18 monthsOrder Turbine and commence construction:24 months

One-time extension of 3 months for any of the milestones

Community Scale Block 1Design & Construction Grant - Payment processDesign phase 20% of grantOrder Equipment15%System Installation50%Commissioning & PTS15%

Massachusetts Maritime Academy

Vestas V47 660 kW

Jiminy Peak Ski Resort 1,500kW Hancock, MA

Holy Name High SchoolWorcester, MA Vestas RRB 600kW

Massachusetts Renewable Energy Trustwww.masstech.org/windwww.masstech.org/solar

cs@masstech.orgcommwind@masstech.org508-870-0312

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