October 5, 2005
TRIBAL GOVERNM ENTTRIBAL GOVERNM ENTTRIBAL GOVERNM ENTTRIBAL GOVERNM ENT
Renewable Energy BasedTribal Utility Formation
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Introductions
Lisa Haws
Viejas Tribal Government
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619 659 2341
Terry Meyer
Black & Veatch
Project Engineer, Renewable Energy Specialist
913 458 7175
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Agenda
Study Overview
Renewable Technology Alternatives
Environmental
Economic Analysis
Tribal Benefits
Conclusions
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Study Overview
1 Project Kickoff Meeting
2 Renewable EnergyResources and Technology
Assessment
3 Detailed ReservationLoad Profile
4 Assessment of EnergyStorage and Load
Management Opportunities
6 Distribution System Audit
8 Generation MixOptimization Study
9 EnvironmentalAssessment
10 Tribal BenefitAssessment
11 Economic Assessment
12 Business PlanDevelopment
5 Electrical InterconnectionAnalyses
WindSolarBiogasBiodiesel
7 Legal Analysis
13 Participate in Tribal Energy Program Review
Meeting
The Feasibility Study focused on Renewable Energy Alternatives and Utility Formation Feasibility.
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Study Overview
Study performed by:
Black & Veatch Corporation
Viejas Tribal Government Public Works Staff
Fredericks, Pelcyger & Hester, LLC
Legal Analysis
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Strategic Options
Net Metering on Individual Accounts
Tribal Utility Interactive with the Grid
Tribal Utility Independent of the Grid
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Renewable Energy Alternatives
Wind
Solar
Bio-Fuels
Cogeneration
Energy Storage
Load Management
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Wind Data AnalysisMonthly Power Output
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Month
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mph Power
Measured WS
Wind Strongest in Early Afternoon
Wind From NE and SW
Estimated Capacity Factor for Wind Turbine between 8% and 13%
Power Production by Time of Day
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0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23Hour
% A
nual
Pow
er
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Single Wind Turbine
Connects Directly to Casino Loads
Offsets Retail Electricity (Net Metering)
Marginal Wind Resource
Self Generation Incentive Program (SGIP)
Good Visibility
SGIP Currently Overbooked
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Small Wind Farm
Wind Resource Gradient
VejasReservation
Better Wind
Economy of Scale
Requires Off-Reservation Land
Could Sell Power
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Photovoltaic (PV) Installation
Net Metering
High Reliability
Good Visibility
High Cost (per kWh)
SGIP Applies
Little Maintenance
Can be Integrated Into Building Roofs or Parking Shade
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Bio-Fuels
Biodiesel, Biogas, and Straight Vegetable Oil Investigated
Works in Diesel Engine or Combustion Turbine
Biodiesel is Expensive
No Known Local Biogas Resource
Straight Vegetable Oil is Not Proven
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Cogeneration
Can be small or large size30 kW Micro-TurbineDiesel Generator3000 kW Combustion Turbine
Can Use Bio-Fuels
If Heat is Used Can be Cost-effectiveAbsorption ChillersHot water
Follows Electrical or Heat Load
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Energy Storage
Critical for a Renewable-based Independent Utility
Pumped Hydro May Work for Viejas
Batteries, Hydrogen, and other options are not currently economic
Pumped Hydro Requires Development Outside of Reservation Boundries.
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Load Management
Energy Efficiency
Dispatchable Loads
Waste Water Treatment Plant
Well Pumps
Central Chiller PlantWith Cold Storage
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Economic Analysis Process
Levelized Cost Screening
POWROPT Scenario Analysis
Economic Assessment
•Net Metering
•Interconnected Utility
•Stand Alone Utility
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Levelized Cost Screening Results
0 50 100 150 200 250 300 350 400 450
Pumped Hydro*Small Wind Farm*
Net Metered Wind (SGIP)Net Metered Wind
SVO GeneratorBiodiesel Generator
Residential PVCommercial PV (SGIP)
Commercial PVDish Stirling
Fuel Cell Conventional Gas SCMicro Turbine CoGen
Battery
Levelized Cost $/MWh
Considered in Optimization Model Not Evaluated in Optimization Model
Considered for Stand Alone Utility Scenario Only
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Levelized Cost Screening Results
The results of the screening analysis and PowerOpt model were used to focus on the most economic alternatives:
Net Metering
1 to 3 MW of wind turbines
Interconnected Utility
No Generation
Wind turbines added
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Cash Flow Results
10 Year Cash Flow Analysis yielded the following results:
Option 10 Year NPV Capital Cost(after SGIP)
Net Metering – 1 WT $223,000 $700,000
Net Metering – 3 WT $651,000 $2,100,000
Utility Base Case –No Generation
-$1,929,000 $8,210,000
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Tornado Diagram – Renewable Utility Formation
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Tribal Benefits
Employment
Self-determination
Environmental Stewardship
Energy Cost??
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ConclusionsViable Net Metering Options Include:
Wind TurbinePV Parking Shade Boiler Co-Gen
Utility Formation may be More Expensive Depending On:
Transmission ImprovementsCost of Energy
Stand Alone Utility Possible Using:Wind FarmPumped Hydro Storage Large Co-Gen