Madeira Energy Initiative

Madeiras path through Energy Conservation and a Power Purchase Agreement Making Solar PayPresented at:OSBA Capital ConferenceNovember 8, 2010

1

Welcome to MadeiraRated Excellent 2 New Buildings and newly Renovated High SchoolOperating budget of $15.8 millionTax base mostly residential

Suburban district NE of Cincinnati 1500 students

STEVE2

CMTA

Top 50 MEP Engineering Firm NationallyOffices in Kentucky, Indiana and Texas. Multiple current projects in Construction & Design in Ohio.Specializes in High Performance School design.41 ENERGY STAR Projects23 LEED Projects100% LEED APs on all projects.

TONY3

Leaders in Sustainable DesignGreen Design Geothermal, daylighting, energy recovery systems, solar thermal and solar photovoltaics. TechnologyData Networks, Data Centers, Networking, VoIP, Wireless and Distance Learning Systems.

TONY

High Performance School Design - show graph examples of school performanceSolar Design - show picture: - $11M of Solar design in last 12 months ???Financial / SREC Expertise - CMTAs PV picture: SREC trading / Duke contract / 7.4yr ROI (show Tims ROI chart on KY PV)

4What we hope to share ..Understanding WhyThe Madeira StoryIntegrating CurriculumThe PPA RFP processAvailable ResourcesQuestions

KENJI

What are the measures the District could take to further save energy and thus reduce our operational costs?

In other words ..How can we reduce consumption?How can we improve operations and maintenance?How can we integrate the importance of energy conservation within the Districts culture?6STEVE

School budgets are shrinkingCost for school operations are growingUtility costs are expected to continue to increaseForecast:Demand for energy resources is increasingPrices for energy is increasing

Where we began

Planning Commission Report March 2009Commissioned study on energy efficiencyWhat ways might we improve efficiency and save moneyRecommendation for an auditProfessional Energy Assessment July 2009Identify options to reduce energy consumptionNo cost, Low cost, High cost optionsRecommendations centered on lighting and HVAC concerns ($12,500)

STEVE

Planning Commission Study on Energy Saving Opportunities in March 2009The BIG Gift

7Phase I Energy Projects November 2009Lighting Level Reductions in ALL BuildingsOccupancy Sensors in Classrooms at MES, MMSSmall Gym / Wrestling Room Lighting ReplacementOutside Air System ImprovementsVAV tie in to Occupancy Sensors in Classrooms at MES, MMSControls Reprogramming

KENJI and TONY 8Consumption Only variable District can controlBehavioral Changes Necessary to save $$ and energyAwareness Involving and educating all stakeholders in reducing energy usage is vital to the Districts successThe ABCs of Energy ConservationD. Dedication Success Starts from the Top9KENJIPhase II Energy Projects June 2010MHS Geothermal / HVAC replacement of aging chiller and inefficient heating systemMeasurement & VerificationVital Signs Display /Curriculum ComponentMES & MMS Louvers

KENJI .. and TONY10

Phase III Energy Projects August-November 2010Reduce energy consumption through ABCsCreate District Energy TeamDevelop a formal Solar RFP.Presentation to BOE that includes: cost savings, installation proposals and best competitive solar power purchase rateSigned Solar PPAComplete Vital Signs energy dashboardProvide math & science Curriculum IntegrationKENJI ..and TONY

Reduce energy consumption through awareness, behavior changes, and commitment (ABCs).Complete energy dashboard that monitors all energy consumption on website and welcome screens in school lobbiesDevelop a formal RFP to identify a credible investor and sign a Power Purchase Agreement (PPA) that provides for photovoltaic solar panel installations at MES and MMS. Presentation by investor to BOE that includes: cost savings, installation proposals and best competitive solar power purchase rateCreate an active District Energy Team to support awareness along with student groups.Provide educational resources / relevant problems from our experience to students (math, science)Signed Solar PPA

11Curriculum IntegrationGetting Teachers InvolvedProviding Real Time DataProvide Digital Interface geared toward Students

KENJI . and TONY12What is a Solar PPA?A Solar Power Purchase Agreement (PPA) is a financial arrangement with a third-party developer .Agreement:They own, operate and maintain the photovoltaic (PV) system.The school agrees to site the system on its roof or elsewhere on its property and purchases the systems electric output for a predetermined period.

TONY13

Net-metered Solar PV System:TONYWhy solar panels make sense on schools and how they workGenerate electricityPeak load shaving (reduces annual charges)Environmental benefitsEducational benefits

TONY15Benefits to SchoolsSignificant initial investmentSchools not eligible for tax incentivesCustomer still pays for system if it is not performingCustomer must learn complexities SREC negotiatingLong term payback, lower return on investmentNo upfront capital investmentAll tax incentives, grants, rebates taken to reduce price of powerCustomer pays only for power producedLock in price to hedge against rising energy costsThird party monitors system performance and maintains system

PPA with Third Party vs. Self OwnershipTONY16Generation vs Consumption 300,000kWh Solar Generation vs 2,600,000 kWh ConsumptionReturn on Investment: Solar vs ECMsReduce Consumption then Provide Generation Solar MCS 300 2600 kWh/yrBenefits of a PPA to the Developer:Tax Shelter & Return on Investment :Federal Tax CreditOhio State Grant (Currently $200,000)Solar Renewable Energy Credits (SRECs)Energy Production

TONY18Benefits of a PPA for Madeira No/low up-front cost Lower electricity pricesA predictable cost of electricity over 1525 yearsAvoid complex system design and permitting process. No operating and maintenance responsibilitiesRenewable Energy visual presence and reminder to our community

TONY and KENJI

How Will Solar Help Madeira Schools?Solar offers lower costs per kWh (origination) Solar offers lower annual escalator than projected electric costsSolar offers peak load shaving (reduces annual charges)Solar offers environmental benefitsSolar offers educational benefitsTONY and KENJI

Steps to a Successful Solar PPA ProjectIdentify potential locationsIdentify interested PartiesIssue an RFPAnalyze bid proposalsNegotiate the PPA Agreement

TONY

Key Considerations in PPACost for solar electricSize of the arrayTerm of the agreementFixed price vs. fixed escalatorInstallation type and installer experienceStability of the investorTONY .. and KENJI

Key Resourceswww.madeiracityschools.orgMadeira PC StudyArticlesPress Releaseswww.cmtaegrs.comKENJI23Questions & Contact Info.Tony Hans, PERCDD, LEED AP502 326.3085thans@cmtaegrs.com

Kenji MatsudoAssistant Superintendent513 985.6070kmatsudo@madeiracityschools.org

Follow us on Facebook!TONYMaking Solar PayPresented at:OSBA Capital ConferenceNovember 8, 2010

Madeiras path through Energy Conservation and a Power Purchase Agreement 25