Camp Ripley Solar Garden Microgrid Mission-Critical Clean Energy for the Minnesota Red Bulls

1. Camp Ripley Solar Garden Microgrid Mission-Critical Clean Energy for the Minnesota Red Bulls Project concept and feasibility study proposal for a net-zero renewable energy microgrid initiative. March 11, 2014 Michael Burr / 320.632.5342mtburr@microgridinstitute.org microgrid in collaboration with

2. Who is Microgrid Institute? MicrogridInstitute is a collaborative organization that focuses on key factors affecting microgrids and distributed energy resources (DER). Our efforts address market development and analysis, contracting and financial models, and project feasibility and structuring. • Multidisciplinary collaboration with industry leaders • Independent, objective thought leadership Charting pathways for resilience and sustainability.

3. Experienced leadership • Advisers & Associates • Microgrid Institute’s network of advisers, associates, and collaborators bring a wide range of critical competencies, from engineering to finance. A few of our associates include: • Terry Mohn, General Microgrids • Guy Warner, Pareto Energy • Allison Archambault, EarthSpark • Steven Pullins, Green Energy Corp. • Leanne Tobias, Malachite LLC • John Jimison, UN Foundation Energy Future Coalition • Peter Asmus, Navigant • James Finlay, Wells Fargo • Doug Houseman, EnerNex • Roger Stark, Stoel Rives • Greg Mowry, University of St. Thomas • Mani Vadari, Modern Grid Solutions Michael Burr Director Michael ZimmerWashington Counsel Christopher O’BrienExecutive-in-Residence

4. Who is Michael Burr? Michael Burr, Director • 25 year career in the energy and utility industry • Background in independent power development and finance • Focus on policy, law, economics, and disruptive energy technologies • Current and recent engagements • Maryland Governor’s “Resiliency through Microgrids” Task Force member • NYU Law School Symposium - Utility of the Future Forum panelist • Microgrid Institute Integration Initiative – working group with ConEd, Federal Energy Regulatory Commission, UN Foundation, EnerNex, Schneider Electric, etc. • U.S. DOE FOA997 subcontractor (Pepco and UST proposals) • Minnesota Department of Commerce, Division of Energy ResourcesMinnesota Microgridsstudy, primary author and contractor • Past consulting engagements: IBM, Barclays PLC, PriceWaterhouse Coopers, Sutherland Asbill & Brennan, U.S. Generating Co.; Chief editor:Public Utilities Fortnightly, Electric Light & Power, Independent Energy, Telecom Business; Chairman: DistribuTECH Planning Committee; Independent Energy Forum

5. Who is REAL? Renewable Energy and Alternatives Laboratory Managed by University of St. Thomas School of Engineering faculty, REAL’s mission focuses on research, design, development, and deployment of sustainable energy systems. REAL leverages the combined resources of the School of Engineering with the market access, technical insight, and funding support of a private industry consortium. REAL is the recipient of a $2.2 million Renewable Development Fund grant from Xcel Energy • REAL R&D projects to date: • Hybrid microgrids • Solar, biomass, hydro, wind • Storage • Fossil-fueled power • Capabilities • State-of-the-art technical design, engineering, and modeling facilities • Hardware and software engineering and development Dr. Greg Mowry, Director, MSEE ProgramDirector, REAL+1.651.962.5749gsmowry@stthomas.edu

6. Best-of-breed collaboration We work with the best in the business. Professionals on our staff and in our networks bring a wealth of experience in the utility, independent power, industrial cogeneration, and distributed energy industries.Staff members and associates on the Microgrid Institute and REAL team combine world-class expertise in: • Project development, design, and engineering • Law, regulation, and finance • Research, analysis, and consulting • Green buildings, LEED certification, and real estate development • Policy studies and expert testimony • Management, leadership, and collaboration

7. Best-of-breed collaboration We bring world-class experts into our collaborative work processes. We work with a variety of companies, agencies, institutions, and individuals, from Fortune 500 companies to independent engineers and subject matter experts.

8. Industry leadership We know how to get things done through collaboration. Microgrid Institute manages collaborative efforts to address factors affecting microgrids. Our principals have led and participated in numerous vital strategic collaborations serving critical energy advances. • Microgrids and distributed generation (UN Foundation Mini-Grids Workroup, ABA Distributed Energy Committee) • Renewable energy (ACORE, SEIA, American Council for Renewable Energy) • Conservation and efficiency (Green Building Council, LEED, EnergySTAR) • Cogeneration and independent power (American Cogeneration Association, Electric Power Supply Association) • Utility standards and interoperability (IEEE, CIGRE, Smart Grid Interoperability Panel) • Utility regulation and technology (Edison Electric Institute, DistribuTECH, Smart Grid Consumer Collaborative)

9. Strategic focus We’re dedicated to optimal deployment of microgrids. Microgrids are unique solutions, requiring thoughtful and creative approaches in order to realize their full productive value. Microgrid Institute focuses onfour primary strategic goals: • Optimal microgrid planning, design, and deployment • Win-win-win development models • Facilitating projects and cultivating markets • Fostering creative solutions to serve customer needs

10. Independence and objectivity Microgrid Institute is an independent organization. As an unaffiliated private initiative, Microgrid Institute is committed to providing authoritative analysis and development support. Our work serves a wide range of microgrid stakeholders, and our mission focuses on optimal microgrid deployment for the benefit of customers. We are NOT advocates or lobbyists. We ARE neutral and agnostic re: technologies and ownership models.

11. What is a microgrid? A microgrid is a small energy system capable of balancing captive supply and demand resources to maintain stable service within a defined boundary. Microgrids combine local energy assets, resources, and technologies into a system that satisfies the host’s energy requirements – which can be as basic as electrification, and as complex as integrating variable energy supplies in a net-zero system.

12. What is a community solar garden? A community solar garden is a solar power plant with a shared-benefit financing structure. It’s crowdfunding for solar energy projects. Solar gardens are sponsored by either a utility, a special-purpose entity, or a nonprofit organization. In each case the sponsor sells “plots” in the solar “community garden” to utility customers or community members. In many utility and nonprofit solar gardens, the subscribers’ share of the solar “harvest” is credited to their monthly utility bills, normally under net metering tariffs. In shared solar gardens sponsored by special purpose entities, output is sold under a power purchase agreement (PPA) – to a site host, a utility, or both.

13. Our proposal: A solar garden microgrid A cost effective, sustainable, and strategically advantageous approach to achieving critical energy goals. Solar gardencommunity-financed, zero-emissions electricity + Microgridresilience, conservation, and optimal integration = Net-Zero Energy Security

14. Why a microgrid? integratingrenewables energysecurity • Operational benefits for energy security • Local resource utilization: Accommodating solar, wind, and other non-continuous energy supplies • Peak shaving: Shifting energy consumption from critical peak periods to low-demand periods • Conservation: Reducing total energy consumption, energy costs, and environmental footprint • Asset optimization: Integrated design, planning, and operation minimizes peak generating capacity requirements and maximizes usage of zero-fuel cost renewable resources microgridenergymanagement peakshaving conservation assetoptimization

15. Active energy management Integrated intelligent systems allow dynamic control for energy system balancing.

16. Baseload energy options Cost-effective choices offer alternatives for stable baseload generation.

17. Why a solar garden? Generating capacity is the most expensive part of any onsite energy program. The community solar garden model, structured around a long-term power purchase agreement (PPA), provides an alternative funding mechanism for solar generating capacity. This approach offers three major advantages over other approaches. Third-party private financing: Capital costs for PV arrays are recovered from solar garden subscribers, freeing budget allocations for other generation and microgrid investments. Flexibility for growth: Initial solar capacity and expansion opportunities depend on Camp Ripley’s requirements and subscriber investments, rather than arbitrary short-term constraints. Community involvement and outreach: Community members will have opportunities to directly support the net-zero resilience mission. the impact of Camp Ripley’s sustainability programs.

18. Why a solar garden microgrid? Co-located and co-developed projects can mutually benefit by sharing assets.

19. Option 1: Solar garden PPA Simple PPA structures reduce uncertainties and allocate risks and rewards. Using a solar garden PPA structure, the Minnesota National Guard would enter a long-term power purchase agreement (PPA) with a third-party Project Company for 100% of kWh and RECs produced by the solar garden. The Project Company would be responsible for marketing and administering the sale of subscriptions. SUN SUN SUN SUN solar energy sales revenue microgrid power purchase agreement

20. Option 2: Nonprofit solar garden Nonprofit alternatives allow community participation directly with Camp Ripley. SUN SUN SUN SUN Using a nonprofit structure, the Minnesota National Guard would sponsor the solar garden, and would be responsible for managing community project development and finance, and administering the marketing and sales of community shares or subscriptions. investment $ sales $ subscription marketing solar energy microgrid

21. Option 3 (?): Utility solar garden Minnesota Power isn’t offering community solar garden tariffs – but it could. Minnesota law allows utilities to offer community solar garden tariffs – but to date Minnesota Power hasn’t indicated whether it will. Only Xcel is compelled to do so. In a utility-sponsored solar garden, the utility (or a designated third party) would be responsible for managing community project development and finance; administering the marketing and sales of community shares or subscriptions; and processing payments in the form of bill credits. investment $ bill credits $ subscription marketing solar energy ?

22. Comparing options * MN legislation compels only Xcel to offer a solar garden tariff. Minnesota Power hasn’t offered community solar garden tariffs, and a solar garden has never been built in the utility’s territory. But a microgrid as sole offtaker makes either PPA or nonprofit option potentially feasible at Camp Ripley.

23. Proposed project initiative microgrid project partner engineering partner primary contractor

24. Microgrid planning process

25. Let’s work together! Michael Burr, Director+1.320.632.5342mtburr@microgridinstitute.org Dr. Greg Mowry, Director, REAL+1.651.962.5749gsmowry@stthomas.edu