The Town of Palisade and Solar Energy Presented by Frank Watt, - - PowerPoint PPT Presentation

Local Government Energy Academy August 30, 2018

The Town of Palisade and Solar Energy

• Presented by Frank Watt, Public Works

Director for the Town of Palisade

• Thank you to Mike McCabe at Oak Leaf Energy

Partners for the use of their material

How Do We Get There?

• Developing a Strategy
• Energy Use Assessment
• Communicate with Key Staff, Elected Officials

& the Public

• Implementing Elements of the Strategy
• Communicate with Key Staff, Elected Officials

& the Public

• Re-evaluate

Developing a Strategy

• Find funding for studies and planning first?
• Respond to incentives from the utility provider?
• Utilize special programs for energy efficient

products?

• Discuss lease/purchase options with alternative

energy suppliers and include subscription services in the mix?

• Discuss sharing costs or creating economies of

scale with other agencies?

• Does opportunity override planning?

Big Step: Energy Use Assessment

• Identify the facilities that you want to evaluate
• Collect relevant data

– 1-5 years of energy use (Electric/Natural Gas) – Impacts to Budget (cost)

• Establish Energy Conservation Measures
• Prioritize – Develop a message

– Save Energy – Save Money – Save the Planet

Facilities

Facility Square Footage Civic Center 10,150 Community Center 7,690 Fire Department - East 3,500 Fire Department – West 2,000 Old Shop 3,500 Pool 1,975 Public Works 7,700 Town Hall 4,920 Water Treatment Plant 5,700 Total Square Feet 47,135

Criteria for Selecting Facilities

• Programming

– How is the Building Used?

• Public Use? Staff Use?
• Source of Funding?

– General Fund or Enterprise Fund

• Overriding Considerations:

– Tabor? Age of Building? Historical Building?

Relevant Data

Facility Electricity-Usage in kWh Cost Average Blended ($/kWh) Building A This can be by month or

• year. Seasonal variations

may be an important consideration Need to know rate structure and demand costs Building B Water Plant Wastewater Plant Pool/Recreation Center Facility Natural Gas-Usage in Therms Cost Average $/Therm Building A This can be by month or

• year. Seasonal variations

may be an important consideration Building B Water Plant Wastewater Plant Pool/Recreation Center

Establish Energy Conservation Measures ECMs

• Primary Considerations:

– Building Heating and Cooling Loads – Heating, Ventilation and Air Conditioning (HVAC) Equipment (condition and age) – Lighting – Domestic Water Consumption – Other Equipment Loads and Uses

Establish Energy Conservation Measures ECMs

• Secondary Considerations:

– Space Utilization – Occupancy Schedules – Control of Lighting & HVAC During Occupancy – Building Design and Location

Communicate with Key Staff and Elected Officials

• Potential sources of funding
• Key partners
• Solicitation process
• Realistic outcomes and timelines
• Long term goals (vision)

Solar Panels at the Palisade Water Treatment Plant

Project Scope

– Summary: The Town of Palisade is seeking opportunities to collaborate with a solar energy project developer for the purpose of developing an on-site solar electricity generation project at the Town’s Water Treatment facility in Palisade, Colorado. Development of this project is encouraged by a utility incentive program that was implemented in Colorado for purposes of compliance with Colorado's Renewable Energy Standard (RES). The Colorado Legislature increased the RES to require higher percentages of solar electricity generation by qualifying retail utilities. Though not subject to the RES, The Town of Palisade is a customer of Xcel Energy, Inc. (Xcel), a major U.S. investor-owned electric and natural gas utility with regulated operations in Colorado that is subject to compliance with the RES. Prospective developers responding to this Opportunity Announcement must be willing to prepare and submit applications to Xcel Energy's Solar*Rewards Medium Programs for customer-sited photovoltaic (PV) systems at Town facilities.

• Project Structure: The Town of Palisade expects the developer to be capable of designing, installing and if necessary,

financing, a ground-mounted PV system that can produce approximately 100% of the power needed at the Town’s water treatment plant. The system will be located on Town owned property at 865 Rapid Creek Road, Palisade, Colorado. Approximately 1 acre of land will be available for the project. In addition, the Town may consider an outright purchase or may expect the developer to own, operate and maintain the PV system for at least twenty years.

• If a third party developer is required for financing, the developers must be willing to enter

into specific agreements with various parties which may be involved in the successful execution of this project. These agreements include the following: (1) a no-cost easement with Town for access to the land; (2) a power purchase agreement with the Town for the electricity generated by the ground-mounted PV system; (3) a site use agreement with the Town for installation, operation and maintenance activities conducted at the site; (4) a third-party rebate contract with Xcel; and (5) a third-party SO-REC contract with Xcel for all SO-RECs generated.

Demand as a Percentage of Total Bill

kWhs per Million Gallons Treated

Monthly and Net Generated kWh

(10,000) 10,000 20,000 30,000 40,000 50,000 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Energy Generated by the Customer (kWh)

What Does it Cost?

• Lease Payment = $1,812 per month
• Average Total Cost including Lease Payment =

$2,184 per month

• Average Credit from Xcel =$885 per month
• Average Net Monthly Cost = $1,699 in 2012
• Average Net Monthly Cost = $1,299 Since August
• f 2013
• Average Monthly Savings = $400 or

$4,800 Annually

What Does it Cost?

• Lease Payment = $1,812 per month
• Average Total Cost including Lease Payment =

$2,500 per month in 2017 (+316)

• Average Credit from Xcel =$1,058 per month

(+$173)

• Average Net Monthly Cost = $1,442 in 2017

(+$143)

• Still below costs in 2012 with no inflation

factor

Basic Concepts of the Solar Garden at Cameo

Project Details

• Two solar gardens in Mesa County

– 4MW DC Total – 11,429 solar panels; ~24acres

• Generates ~6.4M kWh annually

– Subscribers can take up to 40%

• f output (~2.5M kWh Annually)

– 5% goes to Low-Income Subscribers

• Resides on land leased or owned

by Oak Leaf Energy Partners

• Subscription term is 20 years
• Project will be commissioned by

June 2018

Opportunity

• Maximum 40% subscription still

available

• No upfront capital cost
• Immediate savings on operating costs
• Advance sustainability initiatives
• No subscriber land/roof space required
• No asset management responsibilities

General Savings Estimate

Subscription % Subscription Amount (kWh) Total Nominal Savings* CO2 Offset in Tons**

40% 2.4M $579k 42k 30% 1.8M $434k 31k 20% 1.2M $290k 20k

*Assumes 2.5% bill credit escalation @ 5% discount rate **Based on average CO2 emissions per kWh in Colorado

kWh Data 2016 for the Town of Palisade

TOWN OF PALISADE XCEL ENERGY

12 MONTH

2016 USAGE kWh

TOTAL 2015 2016 FOR ACCOUNT USAGE LOCATION DEC JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC 2016 300001074 120 W. 8TH (PARK BATHROOMS) 1,892 1,586 551 527 834 1,599 1,351 1,130 1,106 883 741 579 419 11,306 300001074 120 W. 8TH (COMMUNITY CENTER) 2,041 1,614 1,461 1,181 1,136 1,158 1,599 1,761 1,467 1,145 1,305 1,633 1,685 17,145 300004813 175 3 3RD ST #A (TOWN HALL) 6,880 7,080 6,120 4,680 5,640 12,240 11,920 8,120 6,480 6,080 4,440 5,880 7,560 86,240 300004813 175 E. 3RD ST (PAV) 681 50 65 78 79 73 69 67 65 59 24 124 203 956 300004813 175 1/2 E. 3RD ST 92 294 356 285 51 57 92 120 287 793 2,427 300068820 199 E. 3RD ST. #A 3,113 3,166 3,214 2,168 1,707 1,718 2,124 2,226 2,391 2,078 1,586 2,031 2,533 26,942 300004950 199 E 3RD ST #B 242 311 339 240 498 472 515 571 389 458 263 335 446 4,837 209 MAIN ST. (RESTROOM BLDG) 300 243 230 213 240 247 297 664 433 302 186 242 288 3,585 300125773 301 KLUGE (LIGHT BY PARK) 6 5 4 5 39 33 54 58 82 76 34 42 56 488 307 MAIN ST. (CHARGING STATION) 428 296 269 248 221 217 218 246 260 301 251 341 389 3,257 304294118 341 W 7TH ST. FIRE STATION 10,240 7,840 8,240 7,520 7,600 7,920 11,040 10,080 7,760 8,080 6,800 8,000 10,560 101,440 300199513 451 PENDLETON AVE BATHRM 2,069 1,749 812 631 575 1,680 2,857 2,670 2,893 2,230 1,681 864 1,455 20,097 300199513 451 PENDLETON AVE BLDG 22 22 8 21 52 111 3,242 77 1,504 242 97 59 15 5,450 300157426 545 W. 5TH ST. BLDG PUMP 33 17 9 25 23 25 10 7 9 158 300095584 567 W 5TH ST. (POOL) 3,594 3,278 2,967 2,233 2,433 9,596 1,160 9,577 10,797 2,678 451 1,981 3,432 50,583 300105317 626 MOSS AVE (LIFT STATION) 7 6 7 12 6 6 6 4 5 6 5 5 4 72 300073274 661 BRENTWOOD EAST (BLDG) 16,560 17,040 14,480 12,880 11,360 7,120 7,200 9,360 8,240 10,240 10,160 13,360 15,760 137,200 300137020 661 BRENTWOOD WEST (LAGOON) 31,603 27,284 13,906 16,332 20,818 23,116 22,122 19,979 20,565 23,407 20,679 23,935 23,429 255,572 300001075 711 IOWA CIVIC CENTER BUILDING 11,520 10,720 9,760 7,360 5,440 3,200 4,640 3,360 1,120 1,920 4,320 8,960 11,040 71,840 300095584 865 1/2 RAPID CREEK 51 50 42 42 35 32 30 33 36 40 46 48 51 485 300032111 987 1/2 INNESS CT. 242 190 151 148 160 177 171 154 170 198 168 170 167 2,024 300037629 3529 FRONT (CEMETERY LIGHTS & PUMP) 10 5 8 311 285 799 1,165 316 631 337 1 3,868 300037629 3529 FRONT AREA 113 96 90 80 68 59 65 58 67 78 93 99 110 963 300101635 3679 G RD BLDG SEWER 221 217 213 200 205 227 210 203 212 234 216 239 222 2,598 300101720 3837 N. RIVER RD (BLDG ALT) 54 45 51 7 103 PARKING LIGHTS 258 252 213 211 181 159 151 161 178 195 225 239 258 2,423 300001076 STREET LIGHTS 10,267 10,035 8,219 8,129 6,977 6,119 5,826 6,210 6,887 7,519 8,693 9,213 10,216 94,043 TOTAL 102,404 93,185 71,417 65,246 66,942 77,937 77,960 78,010 73,503 69,197 62,931 78,674 91,100 906,102

906,102

Average 75,509

Palisade Savings Estimate

Solar Garden Lease

Year Lease Payment with 2% Annual Escalator Year Optional Lease Extension for 10 Years 1 $12,000 21 $17,831 2 $12,240 22 $18,188 3 $12,485 23 $18,552 4 $12,734 24 $18,923 5 $12,989 25 $19,301 6 $13,249 26 $19,687 7 $13,514 27 $20,081 8 $13,784 28 $20,483 9 $14,060 29 $20,892 10 $14,341 30 $21,310 11 $14,628 Total $508,553 12 $14,920 13 $15,219 14 $15,523 15 $15,834 16 $16,150 17 $16,473 18 $16,803 19 $17,139 20 $17,482 Sub- Total $291,568

Potential Cost Benefits to the Town from the Solar Garden

• Estimated Energy Savings Over the Next 20

Years: $260,638

– Average of $13,032 per year

• Lease Payments Over the Next 20 Years:

$291,568

– Average of $14,578

• Total Average Annual Savings: $27,610

Conclusion

• The Town of Palisade has embraced solar

energy because:

• 1. It reduces energy costs
• 2. It is viewed positively by citizens, the Board

and by staff

• 3. It reduces energy costs
• 4. It reduces the Town’s carbon footprint
• 5. It saves the Town money