charles county supply development · 10/22/2019 · • brown power via the brown ppa (grey) will...
TRANSCRIPT
Charles County Government – Energy Supply Program1
CHARLES COUNTY GOVERNMENTENERGY SUPPLY PROGRAM
October 22, 2019
Charles County Government – Energy Supply Program2
TABLE OF CONTENTS
THE MAN I. THE JOINT VENTURE
II. THE SOLAR POWER PURCHASE PROGRAM
III. THE SOLAR POWER PROJECTS
IV. THE PROPOSED ENERGY PURCHASE PROGRAM
V. NEXT STEPS
Charles County Government – Energy Supply Program3
THE JOINT VENTURE
Charles County Government – Energy Supply Program4
THE JOINT VENTUREENERGY VENTURES IPP, LLC
INDEPENDENT POWER PRODUCER
• Formation: August 2014 (Delaware)
• Core Competency: Renewable energy power generation facility acquisition, development, ownership and management
• Market Area: United States
• Target Customers: Federal, state and local government agencies, commercial, industrial and institutional entities, and utility companies
• Gov’t Certifications: Federal: SDB, VOSB, SDVOSBState & Local: DBE, MBE
• Gov’t Contracts: U.S. Army ID/IQ MATOC (Solar)
• Pipeline: 5 Projects / 100 MW[dc]
• Employees: 1 – 10
Charles County Government – Energy Supply Program5
THE JOINT VENTUREX-ELIO ENERGY USA, INC.
• X-Elio is a leading vertically-integratedcompany with a long-standing trackrecord in development, construction,operations and management of solarPV assets
• It was founded in 2005, and hasrapidly grown into a globally-recognized player in the Solar PVspace, having developed, built andgrid-connected more than 1.1 GW
• The Company relies on a team of 200highly skilled professionals. Withpresence in 14 countries, X-ELIO hasoffices in Spain, Italy, South Africa,Japan, USA, Mexico, Chile and Australia
• The Company’s shareholders areBrookfield Renewable Partners L.P.(50%) and KKR & Co. Inc. (50%)
Charles County Government – Energy Supply Program6
THE SOLAR POWER PURCHASE PROGRAM
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THE SOLAR POWER PURCHASE PROGRAMPROGRAM GOALS
• Priority I: Financial Considerations
o Reduce County energy expense
o Reduce volatility and increase predictability ofCounty energy expense
• Priority II: Environmental Responsibility
o Increase use of green energy
o Reduce carbon footprint
o Sensitive use of County natural resources
• Priority III: Socio-Economic Development
o Minority Business Enterprise participation
o Small Local Business Enterprise participation
Charles County Government – Energy Supply Program8
THE SOLAR POWER PURCHASE PROGRAMPROGRAM INCENTIVES
• Energy Consumption
o Purchase commitment of 100% of project(s)output up to maximum County demand
• Real Estate
o 44 County-owned potential development sitesoffered for lease
o Below-market site lease payment rate
o Expedited planning & zoning approval
• Tax Authority
o Payment-in-lieu of taxes agreement (PILOT)
Charles County Government – Energy Supply Program9
THE SOLAR POWER PROJECTS
Charles County Government – Energy Supply Program10
THE SOLAR POWER PROJECTSPISGAH LANDFILL
• Location: 6645 Masons Springs RoadLa Plata, MD 20646
• Site Size: 101 acres
• Vegetation Cover: Grassland over a capped solid-waste landfill
• Site Owner: Charles County Government
• System Type: PV Solar, ground-mounted
• Capacity: 29.5 MW(dc) / 22.5 MW(ac)
• Peak Output: 20.18 MW
• Annual Production: 39,851 MWh
Charles County Government – Energy Supply Program11
DAVIS ROAD
• Location: 2500 Davis Road, Waldorf, MD 20603
• Site Size: 96 acres
• Vegetation Cover: Shrubland
• Site Owner: Charles County Government
• System Type: PV Solar, ground-mounted
• Capacity: 12.6 MW(dc) / 10.0 MW(ac)
• Peak Output: 9.83 MW
• Annual Production: 17,179 MWh
THE SOLAR POWER PROJECTS
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Chares
t
TOTAL
• Location: La Plata, White Plains & Waldorf
• Aggregate Size: 301 acres
• Site Owner: Charles County Government
• System Type: PV Solar, ground-mounted
• Capacity: 72.3 MW(dc) / 54.8 MW(ac)
• Peak Output: 51.97 MW
• Annual Production: 97,408 MWh
THE SOLAR POWER PROJECTSDEVELOPMENT/OPERATIONS APPROACH
• Financial Considerations
o Minimize cost & risk of development to the County
o Minimize cost & risk of operations to the County
o Potential revenue sharing with the County
• Environmental Considerations
o Minimize negative impact to the environment
o Maximize positive impact to the environment
• Socio-Economic Development Considerations
o Maximize use of MBEs
o Maximize use of SLBEs
Charles County Government – Energy Supply Program13
THE PROPOSED ENERGY PURCHASE PROGRAM
Charles County Government – Energy Supply Program14
THE PROPOSED ENERGY PROGRAMOVERVIEW OF ELECTRICITY MARKET
Power Market Wholesale Retail
Generation Transmission Distribution
FERC & PJM
Supplier (LSE)(1) SMECO
Maryland
(1) LSE: Load servicing entity, e.g. EnVen/X-Elio
Charles County Government – Energy Supply Program15
JV DevCo JV RESCo
Pisgah Landfill(Project
Company)
Davis Road(Project
Company)
OwnershipSolar PPA
Solar PPA
Charles County Govt
PJM Wholesale(Merchant)
Other Structured Supply
Delivered Fuel Mix via Retail Electricity Supply Agreement
THE PROPOSED ENERGY PROGRAMPROCUREMENT STRUCTURE
Brown PPAs
Charles County PS
Other Entities
Charles County Government – Energy Supply Program16
• Volume based on annual load data provided by the County• Shape based on historic profile from SMECO with estimated profile tranches• Peak Load Demand: 9.932 to 11.257 MW• Annual Consumption: 43,079 MWh
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Estimated Hourly Demand Profile
THE PROPOSED ENERGY PROGRAMCOUNTY DEMAND PROFILE
Charles County Government – Energy Supply Program17
• Brown power (grey) is sold to Charles County during the 24-hour day• No Solar power is sold by SMECO to Charles County Government
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THE PROPOSED ENERGY PROGRAMCOUNTY FUEL MIX PROFILE (CURRENT)
Charles County Government – Energy Supply Program18
• Solar power via the Solar PPA (yellow) will be sold to Charles County during the day to meet its demand during production hours
• Brown power via the Brown PPA (grey) will be sold to Charles County during off-peak hours, the balance of the 24-hour day
• Excess Solar Power via the Solar PPA (green w/diagonal lines) will be sold to other entities (e.g. Charles County PS) during production hours
THE PROPOSED ENERGY PROGRAMFUEL MIX PROFILE
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PV Production Grid Producion Excess Solar Average Load Hourly LMP
Charles County Government – Energy Supply Program19
THE PROPOSED ENERGY PROGRAMBENEFITS TO THE COUNTY
N0. ITEM COUNTY GOAL
1. Reduction in annual energy expense
2. Reduction of volatility and increase in predictability of annual energy expense
3. Monetization of unused or undervalued County real estate
4. Potential for revenue sharing from sale of excess solar power
5. Increased use of green energy
6. Reduction in carbon footprint
7. Sensitive use of County natural resources
8. Potential for participation by County-based MBEs
9. Potential for participation by County-based SLBEs
Charles County Government – Energy Supply Program20
NEXT STEPS
Charles County Government – Energy Supply Program21
NEXT STEPSSCHEDULE OF MILESTONES
EVENT AGENCY PROJECTDAVIS PISGAH
1. Notice of Intent to Award Charles Co. Jan 2017 Jan 20172. Ground Lease Execution Charles Co. Sep 2018 Sep 20183. Power Purchase Agreement Approval (Initial) Charles Co. Nov 2018 Nov 20184. Interconnection Application Submission PJM Mar 2019 Mar 20195. Interconnection Feasibility Study Begins PJM Oct 2019 Oct 20196. Transaction Progress Report to County Commission Charles Co. Oct 2019 Oct 20197. Interconnection Feasibility Results Published PJM Jan 2020 Jan 20208. Special Exception Application Submission Charles Co. Feb 2020 Mar 20209. CPCN Request Submission Maryland PSC Mar 2020 Apr 202010. Special Exception Application Approval Charles Co. Jul 2020 Aug 202011. Site Development Plan Submission Charles Co. Aug 2020 Sep 202012. Site Development Plan Approval Charles Co. Apr 2021 May 202113. Interconnection Application Approval PJM/SMECO Apr 2021 May 202114. CPCN Request Approval Maryland PSC Apr 2021 May 202115. Construction Start EnVen/X-Elio Jun 2021 Jul 202116. Construction Completion EnVen/X-Elio Jan 2022 Feb 202217. COD EnVen/X-Elio Feb 2022 Mar 2022
Charles County Government – Energy Supply Program22
NEXT STEPSCRITICAL ISSUES
• Transaction Documentation
o Ground Lease Amendments
o Power Purchase Agreement Re-Structuring Amendments
o PILOT Agreements
Charles County Government – Energy Supply Program23
END