CCM Energy Solar PV Program

900 Chapel Street
New Haven, CT 06510
[email protected]
November 1, 2012
Andy Merola, CCM
• Connecticut's ZREC Program
Economic Drivers of Solar Projects
CCM Energy & Competitive Procurement
CCM Energy Results
Preparing Now for the Next ZREC Auction
CCM Energy Solar PV Program
What is Solar PV?
 Converting sunlight into electricity
via a photovoltaic cell
 A solid-state device composed of thin
layers of semiconductor materials that
produce an electric current when
exposed to light
 Single cells are grouped to form a module
 Modules are grouped into an array
 Photovoltaic cells produce direct
current (DC) electricity (batteries)
 An inverter changes the current from
DC to AC
CCM Energy Solar PV Program
Connecticut ZREC Program
• As of 10/1/07: net metering for "Class I" renewable-energy
resources (includes solar PV with a capacity ≤ 2 megawatts)
• “Excess electricity” during any month is “banked”, i.e., carried over
to the next month as a per kWh credit
• Customers receive full retail value of electricity generated on site
• For any “excess electricity” remaining in the “bank” at end of
annualized period, utility pays its avoided-cost rate — much lower
than retail value
• As a result, sizing your solar PV project appropriately is critical (and is one
of the services provided by CCM Energy)
• 2011 - CT legislature decides to subsidize solar development
• Requires electric utilities to enter into long-term contracts to purchase
Renewable Energy Credits from these projects
CCM Energy Solar PV Program
Connecticut ZREC Program
• April 4, 2012: PURA approves utility plan for purchase of Zero and Low
Emission Renewable Energy Credits (ZRECs and LRECs)
• $1.02 billion in ZRECs and LRECs
• CL&P and UI enter into $8 million of annual 15-year contracts every year
for six years ($720 million ZREC contracts over next six years)
• Larger ZREC contracts awarded in annual utility auction
• Small ZREC contracts awarded at tariff rate in annual application
• First solicitation for large and medium ZRECs held in June: 296
applications for the ZRECs; selection of 76 winners representing
24.92 mW of renewable generation
CCM Energy Solar PV Program
Economic Drivers
• Solar PV projects require two separate and distinct procurements:
• PPA between the solar development company and the community
(the contract that CCM Energy competitively procures)
• Contract for sale of the ZRECS (the contract between the solar
development company and the utility)
• Proceeds from the sale of ZRECs are the economic driver behind solar
PV projects, providing the lion’s share of the annual revenue
• As a result, success of these solar PV projects depends upon the ability
to sell the ZRECS to the utility
CCM Energy Solar PV Program
• “Behind the meter” projects (the solar array produces power that reduces the
amount of electricity delivered to the meter)
• Savings on the supply (generation) and transmission and distribution (charged
per kWh) of power
• Three or four solar projects might collectively yield 500 kW of solar capacity
with the potential to generate somewhere between $11,000 per year and
$35,000 per year in savings
• CCM Energy’s four projects in East Hartford awarded in the first round with a
combined capacity of 591 kW are expected to generate $53,000 in first-year
• PPAs run for the lifetime of the solar equipment (typically 20 years) and could
yield between $220,000 and $700,000 in total savings
• Savings are impacted by project size, rate class, bid price, and other variables
CCM Energy Solar PV Program
CCM Energy’s Competitive Procurement
• Twenty-year commitment requires expert advice to negotiate
reasonable terms
• CCM Energy services include:
• Screen potential sites
• Develop the procurement documents
• Qualify bidders
• Organize site visits
• Evaluate bids
• Negotiate power purchase agreements
• Recommend the winning bidder and contract
• Monitor the project from contract execution through the start of
construction (from start to finish this may be a 12 month effort)
CCM Energy Solar PV Program
CCM Energy’s Results
• Our process designed to maximize success in subsequent ZREC Auctions
• Our Phase 1 program (this past spring) achieved the following results:
• Competitive Process: 30 solar development companies replied, eventually
leading to six finalists and three selected firms.
• Favorable Terms and Conditions: We negotiated terms that allowed the
buyer to substitute alternate sites for the arrays and or suspend service during
the term to accommodate renovations and reconstruction activities.
• Competitive Prices: We procured a price that is below current utility prices
and fixed and flat for 20 years.
• Compatible with utility ZREC process: Only 28% of the solar projects that
submitted bids into the June 12 CL&P ZREC auction received ZREC awards.
75% of the CCM solar projects received ZREC awards. Based on the
lessons learned we expect to improve on that hit ratio in upcoming
CCM Energy Solar PV Program
Preparing for Next ZREC Auction
• Identify rooftops that meet the following specifications:
• Installed or replaced since 2002
• With at least 10 years of roof warranty remaining
• On a building that consumes 200,000 kWh or more per year
• With a available roof area of at least 15,000 square feet
• Or identify acreage for a ground mounted array:
• With available un-shaded space of 15,000 square feet or more
• Adjacent to building that consumes 200,000 kWh or more per year
• Wastewater plants could be ideal sites for solar arrays
• Send us the address and we will review initial suitability with you
• If it makes sense to proceed:
• Sign a Participation Agreement
• Complete a more detailed survey questionnaire
• Note: Re Smaller projects
CCM Energy Solar PV Program
CCM Energy Solar Procurement Schedule: Fall 2012
Nominate potential sites (we will assist you with this process)
Oct 15
Provide documents and details:
• Site questionnaire
• One recent utility bill for each site
• Recent Audited Financial Statement
• Participation Agreement
Nov 1
Issue RFQ
Mid Nov
Host Site Visits by Bidders (We will organize and attend)
Early Dec
Accept Bids
Late Dec
Negotiate with and select finalists
Jan 15
If you’d like, coordinate & attend presentations by finalists
Late Jan
Make final recommendation
Feb 1
Execute Power Purchase Agreement
Mar 1
Monitor performance starting w ZREC Auction in April
CCM Energy Solar PV Program
Why CCM Energy?
•Large group of program participants ensures continuing interest
among multiple solar developers
•Multi-supplier/competitively bid pricing yields lower per kWh cost
•Multi-supplier/competitively negotiated power purchase agreements
yields beneficial PPA terms and conditions
•Expert, reliable advice and assistance throughout the process
including negotiating with your current supplier if required by your
current supply agreement (already allowed by most CCM procured
•Savings and reduced risk for participants
•No capital investment by the community
CCM Energy Solar PV Program
Thank you for listening.
I would be pleased to answer
any additional questions.
CCM Energy Solar PV Program
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