SLIDE 1 A PROPOSED MICRO GRID
FOR THE
WEST WINDSOR TOWNSHIP MUNICIPAL COMPLEX Questions and Answers (March 27, 2017 Supplement)
The following is a third set of questions and answers regarding this proposal offered for new questions presented at
- r since the January 30, 2017 Township Council meeting. This document has mostly been developed from a review
- f the audio recordings of that meeting.
The questions voiced at the January 30, 2017, public hearing and discussions have been organized into seven categories for this submission. It is noted that most of these responses were offered at the January 30 Township Council meeting; however, a few responses were developed subsequent to the meeting. A detailed description of the conceptual project has been previously provided and is posted on the Township website, along with previously posed questions and answers, and some visuals. First category: Details about how would the proposed Solar 4All micro grid project operate Q - Who would build, operate, and maintain this “Solar 4All” micro grid, including the solar panels, the battery storage unit, and electronic controls? A - PSE&G. Q -Would the panels function when covered with snow? A - Solar panels do function even when covered with light snow. Importantly, the ground mounted panels will be angled so any snow accumulations would melt and slide off the panels. Q - How long an outage would the battery stored electricity cover? A- Approximately 4 hours, assuming all three buildings were consuming electricity at peak levels, and longer if electric use was at less than peak levels. Importantly, before the battery stored power was exhausted, a generator (or two generators) would be activated to ensure continuous power availability. Q - Would the wiring for the proposed project be above or below ground? A - The wiring would be below ground, or on the ground within the fenced solar array area, if permitted by codes. Q - Why couldn’t the Township use the electricity generated by the solar panels all the time, rather than buying electricity from PSE&G? A - The intent, design and operation of a system under the Solar4All program precludes this possibility. A system by which the Township could utilize the power from the solar panels would not qualify for the Solar 4All program.
SLIDE 2 Q - Would there be any possibility that the revenue the Townships receives from the project would decline over time? A - No, the revenue paid to the Township by PSE&G would increase each year based on an escalation clause in the contract. Q - Would the proposed system be able to simultaneously power the supported buildings and add charge to the battery storage module? A - Yes, if array production exceeded demand from the supported buildings. Q - Would the Senior Center be part of the proposed project? A - The initial concept plan did not include the Senior Center or any other Municipal Complex buildings due to the added cost to physically make these connections. The proposal presently includes only the Police, Fire, and FEMS
- buildings. Developing or expanding the micro grid to include the other buildings at the Municipal Complex would be
a future objective to maximize resiliency benefits. Q - What would happen at the end of the lease period? A - The property would be returned to its original condition on final termination of the lease. Second category: Details about the location of the proposed solar array. Q - Instead of placing the solar array in the field behind the fire house, could it be located somewhere else in the township? A - The array must be located close to the micro grid it would power. Locating it elsewhere would require running a dedicated power line from that location to the municipal complex. This is not feasible. Also, the Township does not
- wn any property elsewhere that would permit such an arrangement.
Q - Why not place the solar panel on the building roofs, or on a canopy over the parking lot? A - There is not enough roof area to accommodate the proposed array. Roof mounting the panels or constructing a parking lot canopy would make the project infeasible from an economic perspective given all engineering and other
- complications. The parking lot canopy approach also would be highly visible and require removing all the trees, and
reconstructing the lighting within the parking lot area. Third category: Details about any hazards or potential dangers of the proposed approach. Q - If a solar panel breaks, does it release toxins, and make the ground toxic? A - The solar panels are silicon based, and are non-toxic. Q - Would the battery storage component present a fire hazard? A - No.
SLIDE 3
Q - Would the solar panels create glare that could lead to accidents on road ways? A - No. The panels would be screened with both fencing and vegetation, and angled such that no glare would impact drivers on nearby roads. A review of police reports regarding the claim of accidents at Mercer County College reveal that glare from the solar panels was not a factor or cause of any vehicle accidents. Fourth category: Details on the aesthetics of the proposed solar array. Q - Wouldn’t the proposed solar array be an eyesore? A - The array would be screened with both fencing and vegetation, set well back from roads and sidewalks, and would not be noticeable to passersby. There are only a half dozen residences (on North Post Road) anywhere near the proposed site, with the closest being at least 700 feet distant. These residences all have vegetative (tree line) buffering toward that proposed solar array site. Q - Would the presence of the proposed solar array lead to a reduction of property values nearby, or more generally, in the township? A - The Tax Aassessor for West Windsor has confirmed for Township Council members that there is no basis for any assertion that solar arrays have led to any decrease in property value assessments in West Windsor Township. Fifth category: Legal issues. Q - Can the Township legally use the proposed site for the proposed project? A - It was noted that the proposed site is not encumbered by any open space or farmland preservation restrictions. The Township Attorney indicated that proposed use of this parcel in this manner would be legal. The Township Master Plan does not envision any particular use or need for the property within the 20 year time frame of this project, particularly since the Township purchase of the FEMS building. Sixth category: economics of the proposed project. Q - Would the proposed vegetative screening and/or fencing lead to any diminution in the efficiency of the solar array? A - No. By design neither the vegetative screening, nor the fencing, would impact the efficiency of the solar array. Q - If the Township chose to purchase a generator for the FEMS building, would there be grant money available to help defray the cost? A - The grant money that was obtained to help offset the cost of a generator for the Municipal Building was triggered by Super Storm Sandy. No one is aware of additional grant money being available for such purposes. Q – Has Township explored grant money available for a development of a micro grid? A - Yes. Presently there are not grant available for the construction of a micro grid. There is a grant program for the feasibility study of a micro grid but a West Windsor Municipal Complex micro grid does not meet the scope of requirements of this grant program.
SLIDE 4 Q - What would happen if new and improved solar panel and/or battery technology came available during the course of the lease? A - It was deemed unlikely that solar panel technology would change markedly over the course of the lease. As regards battery technology, new developments are anticipated, but it is not clear how quickly they could be applied to functioning facilities. It is expected that the batteries have limited life spns and would require replacement over the course of the lease. PSE&G would swap out the batteries with newer modules as they became available during such times. Any such modifications would not impact the revenue stream the Township would receive. Seventh category: Discuss alternatives to the proposed project. The administration, and the Environmental Commission, has focused on a BPU sponsored resiliency project that, under the Solar4All program, could be built not only at zero cost to the Township, but that would yield more than $740,000 in lease revenue over a 20 year lease term. In reviewing this proposed project with the Township Council, questions were raised about alternative projects that might be considered, such as PPA (Power Purchase Agreement)
- projects. This section summarizes some of the questions and responses about alternatives.
Q - Wouldn’t the Township stand to reap even greater revenue, in the form of savings on its electricity bills, by pursuing a PPA (Power Purchase Agreement) with a third party? A - Possibly yes. However, a standard PPA would do nothing to add back-up power during outages. A standard PPA would not feature a micro grid, and thus the Township would still face the approximately $150,000 expense of equipping the FEMS building with a backup generator. A standard PPA also would expose the Township to the risks associated with pursuing an approach that depends on the financial stability of a firm that must cope with the volatility of the SREC market, possible changes in federal and state tax incentives for solar projects, and other
- uncertainties. The initial review of the potential pursuit of a PPA approach would require up front Engineering design
development costs for the Township. Initial feedback regarding a PPA approach also suggests that incorporation of resiliency features (battery storage, micro grid, generator purchase avoidance, sophisticated electronic controls) would likely yield less revenue for the Township than the proposed Solar4All project. The subsidization afforded under the Solar4All program makes it very attractive from a resiliency perspective, and extremely attractive from a financial perspective, with no design / development costs for the Township. Q - Do the two existing generators (for Police and Fire house) have sufficient generating capacity to meet the peak demands for all three buildings that would be connected by a micro grid? A - Yes, but the two generators could only provide backup power to all three buildings if a micro grid were put in place, and appropriate controls were installed on the existing generators. This setup would also require both generators to remain functioning in order to serve all three facilities. Q - Is there an off-the-shelf micro grid solution that could be purchased and installed that would permit interconnection of the three buildings and two generators? A - No. A custom engineered solution would have to be developed to connect, communicate, and control the cycling and power distribution of the two existing generators. Initial estimates for implementation of these connections and controls are between $60,000 and $100,000. The generators differ in size and manufacturer, which would require custom controls, to ensure that the micro grid is functionally reliable and efficient. Since both generators are diesel fueled, this type of installation would not create a second tier of fuel source resiliency. During Superstorm Sandy diesel fuel shortages were experienced, which lead to the emergency management goal for more fuel source resiliency for power back-up systems.
SLIDE 5
Q - Is it possible to have a system with battery backup charged by the grid, with no solar component? A - Yes, but such a system is not possible under the Solar4All program, and thus the cost would have to be borne entirely by the Township. Q - How long would it take to explore the possibility of a PPA (power purchase agreement) with a third party? A - At the January Township Council meeting rough estimates to develop PPA alternatives ranged from several weeks to several months. A “thumbnail” analysis and discussion of PPA alternatives is provided under separate cover with this Q & A document, for consideration. This analysis includes consideration of “non-standard” PPA’s options that could incorporate micro grid and/or battery storage components. END.
SLIDE 6
A PROPOSED MICRO GRID
FOR THE
WEST WINDSOR TOWNSHIP MUNICIPAL COMPLEX PPA (Power Purchase Agreement) Alternative Concepts
March 27, 2017 West Windsor Township has held several public discussions on the possibility of pursuing a micro grid for the Township municipal complex under PSE&G’s Solar4All program. Details on the conceptual design and operation of that proposed micro grid for the Township municipal complex, following the design guidelines of the Solar4All program, have been presented and posted on the Township website. In reviewing this project proposal, Township Council suggested the exploration of alternative approaches to increasing the resiliency of critical municipal services, including the possibility of an approach using a Power Purchase Agreement (PPA). PPA overview: A Solar PPA is a financial arrangement in which a third-party “provider” owns, operates, and maintains a solar photovoltaic (PV) system, and the “facility owner,” in this case the Township, would agree to site the system on its property and purchase the system's electric power output from the solar services provider for a predetermined period, most likely 15 years. The costs to design, construct, operate and maintain the PV system are rolled into the agreement, and are borne by the provider. These costs are reflected in the rate paid by the Township. This financial arrangement would allow the Township to receive renewable or “green sourced,” stable, and lower cost electricity, at minimal risk, while the solar services provider acquires valuable financial benefits, such as tax credits and income generated from the sale of Solar Renewable Energy Credits (SREC’s). The following EPA web site provides more details regarding Solar PPA’s: https://www.epa.gov/greenpower/solar- power-purchase-agreements In New Jersey many school districts have developed Solar PPA’s with PV’s on the extensive building roofs typical of many schools. The NJ schools purchasing cooperative has provided up-front services to develop conceptual Solar PPA design, sizing, and public bid documents to facilitate these agreements. The West Windsor School district has implemented a Solar PPA and currently benefits from an electric supply rate that seems to approximate the rate that West Windsor Township currently pays under our Third Party Supply, NJSEM cooperative contracts. East Windsor Township has recently implemented a Solar PPA (ground mounted PV) for their Municipal Police and Court building at a rate that is approximately one-half the rate the West Windsor Township pays through our cooperative contracts. A recent article about East Windsor’s project can be found here: http://www.nj.com/mercer/index.ssf/2017/02/new_solar_array_to_power_east_windsors_police_cour.html Based upon the questions raised during the last review of the West Windsor Micro Grid Proposal and the rates received by East Windsor Township, we have again explored the potential for a Solar PPA at the West Windsor Municipal Complex.
SLIDE 7 The following is an outline of four (4) possible options for a West Windsor Township solar micro grid, with brief analysis of how each would differ.
- 1. If West Windsor IS approved for and agrees to participate in the Solar4All program, pursue the Solar4All
program approach for the installation of a 0.5 megawatt solar array. This approach has already been described in detail with previous presentations as posted on the Township web page. Quick summary: It would require no expenditures by the Township, yield $740,000 in lease revenue over 20 years, and via a micro grid it would greatly enhance the resiliency of Police, Fire and FEMS operations in the face of power outages, avoiding the capital outlay
- f approximately $150,000 for a new FEMS generator. (NET = $890,000*) *corrected previous typo
- 2. If West Windsor IS approved for and agrees to participate in the Solar4All program, it could also co-locate a
second 0.5 megawatt solar array within the same area that originally presented for use by PSEG for the Solar4All solar array, with the second array built and operated by a third party provider under a PPA model. This second array would generate saving in the electricity costs the Township incurs, and compliment the lease revenue the Township would receive from PSE&G. The resiliency benefits of the micro grid would still be there for the interconnected
- buildings. The micro grid would avoid the costs for an additional generator at the FEMS building (~$150,000). A
conservative estimate of additional saving on electricity cost: $19,600 per year, or $294,000 over a typical 15 year PPA agreement. (NET = $1,200,000)
- 3. If the Township IS NOT successful in gaining Solar4All selection, or chooses not to participate, it could pursue
instead a traditional PPA solar array model, with no battery module, and no micro grid, with slightly smaller size array as compared to Option 2. Saving in electricity costs could be used to offset the cost of purchasing a generator for the FEMS building, adding some resiliency improvements, but less than achieved by the incorporation of a micro
- grid. This approach would substantially reduce the carbon footprint of the municipal complex. A conservative
estimate of additional saving on electricity cost: $50,400 per year, or $756,000 over a typical 15 year PPA agreement, but would require the outlay of costs for an additional generator at the FEMS building (~$150,000). (NET = $606,000)
- 4. If the Township IS NOT successful in gaining Solar4All selection, or chooses not to participate, it could pursue
instead a PPA solar array model, incorporating a battery module(s), and a micro grid (potentially interconnecting not
- nly Police, Fire, and FEMS, but also the Senior Center and the Municipal building). This hybrid PPA approach would
be more expensive to build, and thus not yield savings as great as those generated under a traditional PPA. Importantly, however, all the up-front costs would be borne by the third party provider selected to build and operate the PPA, through a public bidding process. This hybrid PPA approach would afford more enhanced resiliency benefits, as compared to the Solar4All system, including avoidance of the FEMS building generator (~$150,000). In addition, this system would substantially reduce the carbon footprint of the municipal complex operations. A conservative estimate of additional saving on electricity cost: $33,600 per year or $504,000 over a typical 15 year PPA agreement. (NET = $654,000) These and other options for the PPA could be pursued by the Township through the Township’s participation with a cooperative services agreement of the NJ School Boards (ACES plus), with no up-front costs to the Township. As an example, Options 3 and 4 could be bid together with Option 3 as the base bid and the additional work to achieve Option 4 as an alternative. End.
