Renewable Energy Consulting – PPA Partners, LLC

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Case Studies

Case Study – Arizona Western College

Posted by PPA Partners On March - 7 - 20102 COMMENTS

Preliminary Case Study – We will update as further details of this project develop.

AWC Solar Array Installation

Between March 2010 and February 2011, AWC and PPC Partners will install a solar array second to none on the main campus of Arizona Western College. Primarily designed as a testing and educational array, the installation will allow AWC to harness the area’s climatologically unique features to generate its own energy, and then some.

AWC is poised to become a leader in renewable energy technology and engineering education, with support from corporate partners.

Get ready to turn the page on history in the sunniest place on earth: Yuma, Arizona*.

Details

  • 5 megawatts makes this array currently the single largest at a U.S. college or  university
  • Will test the 5 different commercially available photovoltaic technologies
  • Low to no water consumption requirement
  • Most participating technologies boast small cradle to grave footprint – 97% recyclable components
  • Most participating technologies use existing materials, no toxic or rare items making manufacture both economically supportable and sustainable
  • 3rd Party Solar Monitoring will control data feed
  • Planned deployment: east and south of main campus

Green Clean Renewable Energy

  • Will cover 100% of the college’s energy needs
  • Will save the college over $3.5m in the first 10 years, $15.4m over 20 years

State-of-the-Art Workforce Development and Curriculum

  • Student and faculty access to cutting-edge technologies
  • Curriculum in development, including
    • Occupational certificate
    • Workforce training
    • Associate’s of Applied Science
    • Partnerships with University for Bachelor, Master’s

Powerful Partnerships Nationally and Globally

  • Arizona Public Service is supporting installation
  • Interested companies include
    • Signet Solar (Germany,California)
    • SKYLINE Solar (California)
    • SolFocus (California)
    • Del Solar (China, California)
    • Canadian Solar (Canada, China)
    • Satcon Energy Systems (Canada, California)
    • RayTracker (California)

Puts Yuma on the Map

  • Yuma offers the most beneficial Solar Days in the U.S. – 354 generating days a year
  • *Guinness Book of World Records named Yuma, Arizona the sunniest city on earth
  • Yuma’s access to west coast, ample land make this a superior site for solar development
  • Creates world-class site for research and testing at the corporate and government levels

AWC — The Brightest Place On Earth

A Simple Case Study

Posted by PPA Partners On February - 28 - 20101 COMMENT

A Power Purchase Agreement is a financing mechanism that has been in use for a number of years by Utilities and by large Industrial and Commercial Power Users.

There are normally no up front costs, to have the system “placed” at your facility.

So you can have Solar, Co-Generation, Fuel Cells and other technologies and have immediate savings with no Capital costs.

Terms are 10 to 20 years+, with better start rates and lower annual increases the longer the contract.

Rates are typically 5-20% below current utility rates with normally a nominal 2%+ yearly increase as opposed to utility published increases of 6.7% annually over the last 20 years.

Sites need to be appropriate for the application.

REC’s and tax benefits are retained by the PPA funding group.

Billing is monthly or quarterly.

Clients need to fill out a full 1003 form (standard loan form)

Client needs to provide 2 years tax returns, 3 trade references, 1 year’s bank statements, and the current years P and L.

Time line from the receipt of the application and additional documents is normally 7-10 business days for determination.

After a positive evaluation of the property and acceptance of the terms and conditions by the client. Typically 30 business days are required to arrange funds, etc.

Minimum size is 50 kW; Maximum is typically 1 MW, dependent upon the technology.

There are substantial penalties for early termination.

As an example we will look at a solar PPA since it is not as complex in analysis.

An industrial user who chooses to have a 1 MW solar generation facility placed on his roof. His current Utility kWh rate is $0.147; we will look at a 5 year cycle of a PPA with normal characteristics. Irradiation allows a 5 hr per day average over the course of the year. Obviously with longer terms, there are better savings, but in this 5 year view of a 10 year contract the argument is compelling.

Start Rate10 year Term @ 10% Initial Reduction and 3% Annual EscalationUtility Rate with 6.7% IncreasesSavingsYear
$.147$.1323$.147$26,8271
$.1362$.156$36,1352
$.1402$.166$47,0853
$.1444$.177$59,4954
$.1487$.188$74,8255
5 Year Savings$244,367