Typical Project Structure Lori Ribeiro
Typical Project Structure Lori Ribeiro Director of Business Development New England Gehrlicher Solar America Corporation
Solar on Closed Landfills in CT – Project Structures October 18, 2012
Presented by: Lori A. Ribeiro, Director of Business Development, New England
Table of Contents • About Gehrlicher Solar • Background: Solar Project Development • Typical Project Structures
IKEA – New Haven, CT 940 kW
Municipal ownership
Land lease Land lease with Power Purchase Agreement
• Policy Barriers to Solar on Landfills and Potential Solutions • Q&A Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
Weston Solutions – North Dartmouth, MA 151 kW 3
About Gehrlicher Solar Gehrlicher Solar America Corporation (GSAC) •
Plans, builds, finances, and operates photovoltaic systems
•
US subsidiary one of the ten largest independent PV project developers and system integrators in the world
•
US headquarters based in Springfield, NJ
•
Also a wholesaler of system components
Eighteen Years of Experience Delivering Quality Solar Solutions: •
Gehrlicher Solar, AG founded in 1994 from CEO’s family farm in Germany
•
Grew to one of the largest global solar PV integration firms Employs over 400 employees globally Offices in Germany, Spain, Italy, France, United States, Brazil, South Africa, India
Credentials: •
Executed over 300MW of PV projects across five continents
•
US management has overseen the construction of 100MW domestically
•
Global revenues exceeded $500 M in 2011
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
Dartmouth, MA 2.7 MW
4
Background: Solar Project Development Typical Responsibilities in Developing a Solar Project • • • • • • • • • • •
Site selection Feasibility assessment Conceptual design Energy and attribute (e.g., ZRECs) off-take agreements Permitting and Interconnection Application Engineering Equipment Procurement Project finance Construction Interconnection Long-term system operations and management
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
In selecting a project structure, a municipality should consider who will be responsible for each task, both during development and during the life of the project.
5
Typical Project Structures Municipal (Self) Ownership: Municipality (or other landfill owner) finances, designs, constructs, owns, operates and maintains the solar project.
Land Lease: Landfill owner leases a portion or all of their property for development of a solar facility. Finance, design, construction, operations and maintains responsibilities, as well as all system benefits, are retained by third party
Land Lease with Power Purchase Agreement: Landfill owner purchases the power produced from the PV system for the term of the agreement. Third party developer finances, designs, builds, owns, operates and maintains the solar project and environmental attributes.
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
6
Project Structures: Municipal Ownership
Source: The Guide to Developing Solar Photovoltaics at Massachusetts Landfills, MA DOER http://www.mass.gov/eea/docs/doer/green-communities/pubs-reports/pvlandfillguide.pdf Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
7
Project Structures: Land Lease
Source: The Guide to Developing Solar Photovoltaics at Massachusetts Landfills, MA DOER http://www.mass.gov/eea/docs/doer/green-communities/pubs-reports/pvlandfillguide.pdf Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
8
Project Structures: Land Lease with PPA
Source: The Guide to Developing Solar Photovoltaics at Massachusetts Landfills, MA DOER http://www.mass.gov/eea/docs/doer/green-communities/pubs-reports/pvlandfillguide.pdf Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
9
Project Structure Considerations
Which is the “best” structure? Depends on… project goals and objectives, available resources. Revenues
Cost savings Capital budget availability Monetization of tax incentives Risk mitigation Resources and Expertise “Green showcase”
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
10
Policy Barriers to Solar on Landfills Certain policies pose challenges, but there are solutions. Issue
Barrier
Possible Solution
No/little on-site load to use electricity
Project must sell electricity wholesale or virtual net meter – generation not full retail rate
Revise VNM legislation to offset full retail for public agencies
VNM bill requires municipal ownership
Municipalities cannot take advantage of tax incentives, often lack capital budget
Revise VNM legislation to allow for third party ownership
ZREC as financing mechanism
Competitive bid process favors simple/ less expensive rooftop projects requiring less permitting, engineering, site preparation costs
Provide bid discount for landfill and brownfield projects similar to discount for CT technologies
Few large (>250 kW) projects can be supported
Increase the allocation for large projects
One year completion requirement challenging to achieve with permitting requirements
Allow extension of time provided key milestones are met
Caps projects at 1 MW
Increase Section 127 allocation for “grid tied projects”; provide bid discount for landfill and brownfield projects
State and local permitting process uncertain
State permitting policy; model bylaws for municipalities
Permitting
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
11
Questions? Contact information:
Lori Ribeiro Director of Business Development, New England [email protected] 908-591-9434
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
12
Thank you! Gehrlicher Solar America Corp. 21 Fadem Road, Unit 7 07081 Springfield, NJ T +1 908 219 4379 T +1 877 844 9174 (Toll Free) F +1 201 452 1216 [email protected]
www.gehrlicher.com
Solar on Closed Landfills in CT – Project Structures October 18, 2012
Presented by: Lori A. Ribeiro, Director of Business Development, New England
Table of Contents • About Gehrlicher Solar • Background: Solar Project Development • Typical Project Structures
IKEA – New Haven, CT 940 kW
Municipal ownership
Land lease Land lease with Power Purchase Agreement
• Policy Barriers to Solar on Landfills and Potential Solutions • Q&A Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
Weston Solutions – North Dartmouth, MA 151 kW 3
About Gehrlicher Solar Gehrlicher Solar America Corporation (GSAC) •
Plans, builds, finances, and operates photovoltaic systems
•
US subsidiary one of the ten largest independent PV project developers and system integrators in the world
•
US headquarters based in Springfield, NJ
•
Also a wholesaler of system components
Eighteen Years of Experience Delivering Quality Solar Solutions: •
Gehrlicher Solar, AG founded in 1994 from CEO’s family farm in Germany
•
Grew to one of the largest global solar PV integration firms Employs over 400 employees globally Offices in Germany, Spain, Italy, France, United States, Brazil, South Africa, India
Credentials: •
Executed over 300MW of PV projects across five continents
•
US management has overseen the construction of 100MW domestically
•
Global revenues exceeded $500 M in 2011
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
Dartmouth, MA 2.7 MW
4
Background: Solar Project Development Typical Responsibilities in Developing a Solar Project • • • • • • • • • • •
Site selection Feasibility assessment Conceptual design Energy and attribute (e.g., ZRECs) off-take agreements Permitting and Interconnection Application Engineering Equipment Procurement Project finance Construction Interconnection Long-term system operations and management
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
In selecting a project structure, a municipality should consider who will be responsible for each task, both during development and during the life of the project.
5
Typical Project Structures Municipal (Self) Ownership: Municipality (or other landfill owner) finances, designs, constructs, owns, operates and maintains the solar project.
Land Lease: Landfill owner leases a portion or all of their property for development of a solar facility. Finance, design, construction, operations and maintains responsibilities, as well as all system benefits, are retained by third party
Land Lease with Power Purchase Agreement: Landfill owner purchases the power produced from the PV system for the term of the agreement. Third party developer finances, designs, builds, owns, operates and maintains the solar project and environmental attributes.
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
6
Project Structures: Municipal Ownership
Source: The Guide to Developing Solar Photovoltaics at Massachusetts Landfills, MA DOER http://www.mass.gov/eea/docs/doer/green-communities/pubs-reports/pvlandfillguide.pdf Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
7
Project Structures: Land Lease
Source: The Guide to Developing Solar Photovoltaics at Massachusetts Landfills, MA DOER http://www.mass.gov/eea/docs/doer/green-communities/pubs-reports/pvlandfillguide.pdf Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
8
Project Structures: Land Lease with PPA
Source: The Guide to Developing Solar Photovoltaics at Massachusetts Landfills, MA DOER http://www.mass.gov/eea/docs/doer/green-communities/pubs-reports/pvlandfillguide.pdf Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
9
Project Structure Considerations
Which is the “best” structure? Depends on… project goals and objectives, available resources. Revenues
Cost savings Capital budget availability Monetization of tax incentives Risk mitigation Resources and Expertise “Green showcase”
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
10
Policy Barriers to Solar on Landfills Certain policies pose challenges, but there are solutions. Issue
Barrier
Possible Solution
No/little on-site load to use electricity
Project must sell electricity wholesale or virtual net meter – generation not full retail rate
Revise VNM legislation to offset full retail for public agencies
VNM bill requires municipal ownership
Municipalities cannot take advantage of tax incentives, often lack capital budget
Revise VNM legislation to allow for third party ownership
ZREC as financing mechanism
Competitive bid process favors simple/ less expensive rooftop projects requiring less permitting, engineering, site preparation costs
Provide bid discount for landfill and brownfield projects similar to discount for CT technologies
Few large (>250 kW) projects can be supported
Increase the allocation for large projects
One year completion requirement challenging to achieve with permitting requirements
Allow extension of time provided key milestones are met
Caps projects at 1 MW
Increase Section 127 allocation for “grid tied projects”; provide bid discount for landfill and brownfield projects
State and local permitting process uncertain
State permitting policy; model bylaws for municipalities
Permitting
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
11
Questions? Contact information:
Lori Ribeiro Director of Business Development, New England [email protected] 908-591-9434
Solar on Landfills – Project Structures| Hartford, CT | 18.10.2012 | L. Ribeiro | EBC CT Chapter Renewables Energy Program
12
Thank you! Gehrlicher Solar America Corp. 21 Fadem Road, Unit 7 07081 Springfield, NJ T +1 908 219 4379 T +1 877 844 9174 (Toll Free) F +1 201 452 1216 [email protected]
www.gehrlicher.com
