NARENCO Smart Power : Smart Business
Key Topics • Energy Management Topics • Discuss Distributed Generation • Discuss Grid Integration • Discuss Hybrid Generation/Storage • Micro Grid Strategy and Analytics • Utility Voltage Regulation • Incentives Brief • Financial Options
Common Solar stats • Fixed Ground Mount Requires 5 Acres: 1 MW • Tracking Ground Mount Requires 4 Acres: 1MW • Roof Mount Requires 126,000 Sq. Ft. • + 5 Lbs Sq. Ft. Roof Reinforced Load • Generally Better for New Roof (Life Expectancy) • Typical Panel Production Warranty is 25 Years • 85% of production in 25%, degrade .05%/year • Typical Farmland Lease = Approximate $400-$500 per acre, per year
WHAT WE SEE in NC Long Term Power Purchase Agreements -Direct Sale of Power to the Utility at a Specified Rate for a Specified Period -Third Party Investor System Ownership (Unregulated) Long Term Equipment Lease or Sale Solar is Typically Development Driven vs. Direct Corporate Investment in NC Potential for Public Private Partnerships (Municipal) Potential for Non-Profit 501c3 Financing Methods
Trends in Clean energyWhat causes increase Renewable energy resources are the only ones steadily falling in price. Since 2006, the cost of solar in NC has dropped almost 50%. In fact, it is anticipated that solar will reach “grid parity” (matching your retail electricity rates) in 5-6 years, and thus, will then need fewer incentives in the future and eventually no incentives. House Bill 495 and Senate Bill 473. The bill will increase the solar requirement to 0.4% of utilities’ retail electric sales by 2018, and thus allow these companies to retain and hire new employees, while expanding their businesses and completing more clean energy projects. Increasing the use of renewable energy resources and energy efficiency solutions = stronger national security.
Solar Outlook and IMPACT in NC _________________________________ Job estimates for NC’s rapidly growing solar energy industry currently totals nearly 2,000 employees at nearly 170 companies. Passage of the Solar Jobs Bill will increase market demand and competition, which will continue the industry’s expansion by creating an estimated 4,000 new solar energy jobs across our state – resulting in a total of 6,000 solar jobs by 2015, and a total of 14,000 solar jobs by 2020. -NC Sustainable Energy Association (NCSEA)
Canadian Hills – Project Overview • $490 million capital investment • Financing closed in March 2012 • Construction started April 2012 • Completion date in December 2012 • 16,000-acre project site • 8.5 m/s wind speeds at 80 m • 43.1% Net Capacity Factor • REpowerand Mitsubishi turbines • Five PPAs with three counterparties • 20-mile 345 kV transmission line • OG&E Cimarron substation is POI • Phase II planned
Estimated New County Revenues * Economic impact numbers based on analysis from Economic Impact Group of Meinders School of Business, Oklahoma City University. † Includes regionally specific multiplier effects. Multiplier effects include supply chain impacts and additional economic activity induced by household spending of new wages generated by the project. ‡ Based on average annual payment.
JOBS * Economic impact numbers based on analysis from Economic Impact Group of Meinders School of Business, Oklahoma City University. † Includes regionally specific multiplier effects. Multiplier effects include supply chain impacts and additional economic activity induced by household spending of new wages generated by the project. ‡ Based on average annual payment.