Regulatory Requirements FERC License or Exemption Extensive Consultations & NEPA Non-FERC & State Approvals S. 404 Waterways S. 401 Water Quality Cert. Wetlands Protection Act Local Building & Zoning Other Electrical Interconnection Agreement LIHI & DPUC (for REC’s)
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Federal Energy Regulatory Commission (FERC) Three Stage Consultation Process –
Diverse Stakeholder Consultation Requirements
–
Environmental, Social, Economic & Power
–
Dam Safety
–
Clean Water Act (s. 401 & s. 404)
Typically 5+ yr process
Consultations
Studies
Protection, Mitigation & Enhancement
Potentially Expensive
7
Local Snapshot •Initial Feasibility Studies on 22 dams in 3 RI watersheds.
•Ten Mile River •Blackstone River •Pawtuxet River •Cumulative hydropower potential: •6.6 MW installed capacity
•Avg. of 28,300 MWH/yr •Enough energy for ~ 4,000 homes
Phase I Feasibility •Site Control / Dam Ownership •Preliminary Dam Safety Inspections •Site Hydraulics and Energy Estimates
•Economic Analysis •Regional Collaborative Building
Ownership Summary
•Pawtuxet primarily private.
Public 45%
•Blackstone & 10-Mile primarily public.
Private 55%
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Preliminary Dam Safety Assessments All dams require some upkeep and maintenance. But
can be expected to perform as designed. Transition of dam safety from State to Federal
jurisdiction. Compliance can significantly effect project economics. Without hydro (or other intervention) – condition will
deteriorate
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Site Hydraulics
Dam Name
% Published Actual Head Dam Delta (ft) Change (avg. ft) Height (ft)
Pratt
12
1.9
-10.1
-84%
Manville
22
13.4
-8.6
-39%
Albion
18
10.8
-7.2
-40%
Ashton
18
7.9
-10.1
-56%
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Example Equipment Options Vertical Francis Bulb Turbine
Siphon Turbine
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Energy Estimates
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Economic Feasibility •Project viability is largely dependent on the value of the energy produced. Assuming a 1,000,000 kwh/yr Project: Market Assumption
Energy Value
REC Value
Gross Annual Revenues
Avoided Cost
$0.17/kwh
$0.025/kwh
$195,000
Net-Meter
$0.12/kwh
$0.025/kwh
$145,000
Standard Contract
$0.10/kwh
$0.025/kwh
$125,000
Wholesale
$0.05/kwh
$0.025/kwh
$75,000
Rhode Island renewable energy regulations currently do not provide for netmetering of hydro. Current best (safest) bet is on-site consumption (avoided cost or savings). 16
Funding Considerations Projects are front-loaded investments requiring
significant time and cost commitments. Project financing is improved with guaranteed source of revenue Standard Offer Contracts Power Purchase Agreements
Several financing programs designed to promote
renewables. Need to be considered on a case specific basis to determine eligibility, deadlines, ownership structure, etc. 17