Purchasing Power – Appendix 8 WRI Request for Proposal This resource accompanies the recommendations of Purchasing Power: Best Practices Guide to Collaborative Solar Procurement, co-published by Joint Venture: Silicon Valley Network, the World Resources Institute and Optony. The Best Practices Guide assists commercial and government entities in the process of organizing and executing a collaborative solar purchase. Readers are encouraged to tailor these resources and sample documents to the needs of their individual initiatives. This tool did not undergo the formal external review typical of WRI documents, but suggestions for improvement are welcome. To reach the authors with feedback or questions, please refer to the contact information available at www.wri.org/buying-solar. This resource is Appendix 8 – “WRI Request for Proposal.” It is intended for use in Steps 6-7 of the Best Practices. This document is the redacted version of the RFP that was issued by WRI for The Collaborative Solar Project. Items [in brackets] have been redacted to generic terms. This document can serve as a useful reference for any collaborative purchasing initiative, but should be heavily tailored to fit the initiative’s participant needs, probable vendor audience, and target market segments. The Microsoft Excel sheet also titled as Appendix 8 was issued as part of this RFP to solicit pricing from bidders in a standard format, which is recommended. 1 Request for Proposal The Collaborative Solar Project: Accelerating the Rate and Scale of Solar PV Deployment through Demand Aggregation 2 A. Introduction ............................................................................................................................. 4 B. Overview ................................................................................................................................. 5 1. Issuers ............................................................................................................................. 5 2. Roof top systems ............................................................................................................. 5 3. Confidentiality ................................................................................................................ 5 4. Purchasing Model ........................................................................................................... 5 5. Vendor Evaluation Criteria ............................................................................................. 6 6. Timeline .......................................................................................................................... 6 C. RFP Requirements .................................................................................................................. 7 1. Company Information ..................................................................................................... 7 2. Project Experience .......................................................................................................... 7 3. Experience in the Region ................................................................................................ 7 4. Financial Information...................................................................................................... 7 5. Sub Contractors ............................................................................................................... 8 6. Site Visit Schedule .......................................................................................................... 9 7. Facility Bids .................................................................................................................. 10 8. Additional Questions .................................................................................................... 10 9. Timeline ........................................................................................................................ 10 10. PPA Contract Language ............................................................................................ 10 Appendix 1: About the World Resources Institute ....................................................................... 11 Appendix 2: Site Schedule ............................................................................................................ 12 1. Company A ....................................................................................................................... 13 2. Company B ........................................................................Error! Bookmark not defined. 3. Company C ........................................................................Error! Bookmark not defined. 4. Company D ........................................................................Error! Bookmark not defined. 5. Company E.........................................................................Error! Bookmark not defined. Appendix 3: Scope of Services ..................................................................................................... 14 1. General .......................................................................................................................... 14 2. PV Panel, Inverter, and Other Plant Component Specifications .................................. 14 3. Installation..................................................................................................................... 14 4. Interconnection ............................................................................................................. 15 5. Commissioning and Acceptance Testing ...................................................................... 15 6. Monitoring .................................................................................................................... 15 7. Rebates, Incentives, and Subsidies ............................................................................... 16 8. Operations, Maintenance, and Reporting...................................................................... 16 9. Permitting fees & Application process ......................................................................... 17 Appendix 4: Bid Sheet .................................................................................................................. 18 3 A. Introduction On behalf of [participating companies in the Green Power Market Development Group] the World Resources Institute (WRI) is requesting proposals from potential vendor partners with expertise in designing, procuring, installing, and commissioning rooftop solar power systems to provide commercial and industrial customers with renewable power. This request for proposal (RFP) is issued by WRI in its role as convener of the Green Power Market Development Group (GPMDG), the Green Power Group California Affiliates (GPGCA), and US Climate Business Group (USCBG), on behalf of participating corporations. For information on WRI and its affiliated partnerships please refer to Appendix 1. This RFP is meant to secure information necessary to place on-site solar photovoltaic (PV) systems across the rooftops of multiple corporate facilities in the Northern California area. By aggregating the demand for on-site solar photovoltaic (PV) systems across neighboring businesses, the Issuers endeavor to: Increase the scale and accelerate the rate of deployment of solar technologies Encourage corporations to invest in on-site renewable power generation Support technology advancements Reduce greenhouse gas emissions 4 B. Overview 1. Issuers The World Resources Institute issues this RFP on behalf of the following participants: [Company A] [Company B] [Company C] [Company D] [Company E] These companies will collectively be referred to as the “Issuers” hereinafter. Through this RFP, the Issuers seek proposals on the feasibility and benefits of deploying solar power generation across an aggregated set of corporate facilities. A site schedule from the Issuers is provided in Appendix 2. 2. Roof top systems This document describes 19 potential sites with approximately 1.2 million square feet of flat roof space in Northern California. The potential sites are all located within an approximate 15 mile radius. The facilities span the towns of Palo Alto, Cupertino, Santa Clara, Fremont, Newark, Union City, and San Ramon in California. For all facilities, the Issuers own the facility or lease the facility with roof rights included. Details of the roofs and aerial photos can be found in Appendix 2. 3. Confidentiality As vendors have signed a NDA with WRI in advance of reviewing the content in this RFP document, all metering and facility data should be considered confidential. Vendor bid packages will not be shared outside of the Issuers and WRI. 4. Purchasing Model The Issuers wish to maximize cost-effective solar power at the facilities listed on the Site Schedule (Appendix 2). They have agreed to make their roof space in the Northern California area available in aggregate to maximize economies of scale and synergies from the proximity of the facilities. Aggregate Pricing All pricing data submitted as part of the proposals will be considered part of an aggregate purchase and understood to be different from pricing if the Issuers decided to pursue disaggregated purchases for individual sites. Both PPA and Turnkey Purchasing Models 5 When providing bids, vendors should include price quotes for: $/kWh for a 10-year Power Purchase Agreements $/kWh for a 15-year Power Purchase Agreements $/watt installed for a turnkey development A template bid sheet can be founding Appendix 5 and is available in softcopy format from WRI. Installation Time Frame All pricing should be based on the assumption that systems will be placed in service within 9 months of contract finalization. Final contracts will include Issuer obligations as well as vendor development milestones that ensure timely execution and construction of solar projects resulting from this RFP. 5. Vendor Evaluation Criteria Vendors will be evaluated on their experience, track record, financial condition, choice of technology, and pricing. Based on RFP responses, solar vendors will be scored across a series of criteria. Each criterion is weighted based on the relative importance of the characteristic to the group. The evaluation attributes and their respective weights are: COMPANY Track record: yrs experience, references, scale, success Bay Area experience Financial condition & ability to secure financing PRICING & TECHNOLOGY Pricing & terms # of facilities included in proposal Total MW included in proposal Installation timeline Weight 2.00 1.00 2.00 Weight 2.00 0.50 0.50 0.25 Based primarily on the criteria above, the Issuers will select a single vendor to provide solar installations and fulfill the terms of their proposal. That single vendor will sign contracts with each Issuing company. 6. Timeline Milestone/Action Item Request for Proposal released Site Visits RFP Responses due Date 4/20/09 4/27/09 to 5/8/09 6/12/09 6 C. RFP Requirements All responses and inquiries should be sent to: Christopher Lau World Resources Institute clau@wri.org RFP Response requirements are as follows: 1. Company Information a. b. c. d. e. f. g. h. Name of organization Mailing address Name of primary contact Contact title Contact email Contact phone number Contact address (if different from mailing address) Legal status (corporation, partnership, joint venture, etc.) 2. Project Experience Proposals shall include a brief description of the vendor’s 3 largest completed solar projects/programs. The description for each project/program should include: a. The project name b. Year placed in service c. Project size (total cost and project capacity in kW) d. Project type – turnkey or third party energy sales e. Up-time of project f. Location g. Name of project manager h. Name of client contact i. Brief physical description of the project (equipment manufacturer, model, etc.) 3. Experience in the Region Please provide a short description of your level of experience implementing projects in the municipalities of the Bay Area and in the state of California. Please include information on the number of PPA transactions for roof-top PV that have you completed in the state. 4. Financial Information Selecting a financially viable partner is critical to the Issuers. Please submit financial statements certified by a reputable accounting firm as accurately presenting the financial position of your company in accordance with generally accepted accounting principles. The financial data submitted for this RFP will not be shared beyond the Issuers and WRI. 7 5. Sub Contractors Please provide a list of the contractors you anticipate working with to complete this project. For each contractor, please include the following: a. Company name b. Contact information c. Description and expected function 8 6. Site Visit Schedule Company Meeting Address City Zip Code Visit Date Visit Time Point of Contact Email Vendors will have the opportunity to visit all 19 sites. A site visit schedule is listed above. Please email the company contact to indicate that you will be attending the site visit and the number of people from your company in attendance. Company A will schedule each vendor individually. Please contact [Contact Person] at Company A to setup a facility evaluation time. Metering data will be provided at the time of the site visits. 9 7. Facility Bids Vendor proposals should include bids for all sites where competitively priced solar power can be provided. Vendors are not required to bid on every facility. All pricing data submitted as part of vendor proposals will be considered part of an aggregate purchase and understood to be different from pricing if the Issuers decided to pursue disaggregated purchases for individual sites. As part of your proposal, please complete the Bid Sheet in Appendix 4. Note that pricing assumes that the Issuers retain ownership of RECs and Issuers will provide their own property insurance for the solar power system. 8. Additional Questions a. Describe the cost impact of the solar vendor retaining REC ownership. b. What are your assumptions for REC pricing over the life of the PPA? c. Describe cost impact of having vendor supplied property insurance for the solar power system. d. Describe how a 20-year PPA would affect financing and pricing. e. Describe how you plan to use stimulus funds from the American Recovery and Reinvestment Act on this Collaborative Solar Purchase, if at all. f. Describe how the volume of roof space impacted your pricing, if at all. 9. Timeline Vendor proposals should include an estimate timeline for deployment. The timeline should define the timetable from the date of a signed contract. 10. PPA Contract Language Vendor proposals should include a copy of their standard contract language as part of their proposal. 10 Appendix 1: About the World Resources Institute The World Resources Institute (WRI) is an environmental think tank that goes beyond research to find practical ways to protect the earth and improve people’s lives. Through its Green Power Market Development Group, the Green Power Group California Affiliates, and the US Climate Business Group, WRI works closely with energy professionals to develop strategies for companies to thrive in a carbon-constrained economy. Partners develop greenhouse gas (GHG) management systems, share energy management practices and invest in clean energy. In addition, the partnerships build the business case for green power by identifying and analyzing viable renewable energy projects. Since January 2001, the Green Power Market Development Group has facilitated the development of over 700MW of new green power projects. For more information on WRI, see: http://about.wri.org For more information on the GPMDG, see: http://www.thegreenpowergroup.org For more information on the US Climate Business Group, see: http://www.wri.org/project/us-climate-business 11 Appendix 2: Site Schedule Facility Number Company Location ID Street Address City State Zip Code Roof Space Roof Age (yrs) Roof Type / Materials 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 12 Site Information Provided in Original RFP Nb: For each site, the RFP provided the site address, and aerial photos of site roof, in addition to site information above. This information has 13 Appendix 3: Scope of Services 1. General The vendor shall design, engineer, install, and operate grid-tied solar PV systems on the roof tops at Issuer facilities, taking into consideration the proposed installation sites; facility electrical demand and load patterns; available solar resources; installation costs; all applicable zoning ordinances; municipal, state, and federal requirements; and other relevant factors. The vendor shall identify an appropriate location for the solar PV inverter equipment and its related components and environmental control systems that will meet the following criteria: • Ease of maintenance and monitoring • Efficient operation • Low operating losses • Secured location and hardware • Compatibility with existing facilities The vendor shall secure from governing agencies and the utility company all necessary and required rights, permits, approvals, and interconnection agreements at no additional cost to Issuer. Issuer will become the signatory on applications, permits, and utility agreements only where necessary and subject to the sole determination and discretion of Issuer. The Issuers maintain the right to approve all design documents and add requirements on compatibility with existing power infrastructure. The vendor shall complete and submit in a timely manner all documentation required to qualify each system for all available rebates and incentives which should be included in the cost component of the RFP. 2. PV Panel, Inverter, and Other Plant Component Specifications The vendor shall install PV panels, inverters and other components that meet the applicable state regulations. In addition to meeting state regulations, vendors shall install PV panels that meet a minimum performance of 225kWh/m2 per year, assuming the total insolation is not less than 1,600kWh/m2/year. 3. Installation The vendor shall supply all equipment, materials, and labor necessary to install the solar PV systems and integrate them with other power sources. The integration of the system to buildings and operators must be approved by the building owners. The vendor will engage a Structural Engineer to ensure that live and dead loads added by the PV system will not 14 exceed the permissible loads for the respective buildings. Age of the roof will also be considered as a design factor. The supplier must ensure that throughout the project, Issuer assets (ie roofing, etc) will be protected and that the vendor is responsible for any damage sustained during the installation process and the remainder of the contract period. 4. Interconnection The vendor shall supply and install all equipment required to interconnect the solar PV systems to the transmission and distribution system. The vendor shall fulfill all application, study, and testing procedures to complete the interconnection process. All costs associated with utility interconnection shall be borne by the vendor. All electrical interconnections must be performed in accordance with all local, state and federal applicable safety regulations. The Issuer and/or its independent engineer will need input and oversight as to how the PV system interconnects into the issuer’s site distribution system. All direct and associated costs including, but not limited to, application and special facility interconnection fees and other costs paid to the utility will be the responsibility of the vendor. If the vendor intends to subcontract any portion of the work to third parties, the vendor will identify those third parties in its proposal and the corresponding work to be performed. 5. Commissioning and Acceptance Testing During the start-up, Issuer and/or its independent engineer shall observe and verify each system’s performance. Required commissioning and acceptance test services include: Starting up the solar PV systems until it achieves the performance requirements of the power sales agreement; Conducting the successful delivery of power within thirty days following completion of a system; Coordinating acceptance by local utility companies. 6. Monitoring The vendor shall provide a monitoring program that allows Issuer to monitor, analyze and display historical and live solar electricity generation data for installed sites. The system will allow Issuer to track progress toward the renewable goal for all the systems for each Issue company as well as monitor performance against the warranted production requirements on a site-by-site basis. The regularly collected data should reflect, but not be limited to, the following: System performance System availability Average and accumulated output 15 Capacity factor Degradation The data acquisition system shall be designed for turnkey, remote operation. Data shall be transmitted via Internet, satellite, or telephone from each site to a server managed by the vendor. Data storage (on a current and cumulative historical basis), management and display will be the responsibility of the vendor. The data acquisition system must not require that a dedicated or always-on personal computer be located at each site and are subject to the review and approval of Issuer System Information team. Vendor must coordinate with the Issuer’s information technology (IT) department to provide the data link, which must be operational at commissioning. Additionally the data acquisition system shall provide Issuer the ability to integrate live and historical solar energy information for individual systems into participant websites. The overall monitoring program and systems shall be established by the completion of the first system installed for Issuer. The cost associated for providing the above-referenced monitoring and data collection system shall be separately itemized in the proposal. 7. Rebates, Incentives, and Subsidies Issuer will in many cases base its purchase decisions upon the availability of state or federal Subsidies or tax credits for projects (“Project Subsidies”). If Project Subsidies are not available at the levels initially contemplated, Issuer will reserve the right to cancel its contractual relations with the Vendor without obligation as long as construction has not begun. In cases where the Vendor takes the risk of availability of Project Subsidies and those Project Subsidies are not available despite the Vendor’s efforts to obtain them, the Vendor will be permitted to cancel a project prior to initiating installation but not thereafter. 8. Operations, Maintenance, and Reporting Proposals must outline the project’s expected O&M requirements, including the proposed method for monitoring, diagnosing and tracking the energy output over the entire life of all installations. This data must be accessible for reporting purposes. The respondent must describe in any proposals how it intends to satisfy the following requirements. The vendor must track logs of the following maintenance procedures: During the initial term of operation and any extension thereof, the respondent will be responsible for all maintenance, repairs, and parts, both scheduled and nonscheduled. The minimal maintenance requirements include: o Every three months, drive-by inspections of all modules, verification of proper fan operation on each inverter, and checking/ cleaning the inverters heat sinks as needed; 16 o Every six months, check the inverter enclosure seals for damage, visually inspect condition of all inverter cables and connections; and o Annually, check module ground connections and o Every two years, perform a complete array electrical performance verification. Projects must have a real-time self-monitoring capability to alert operators and maintenance personnel to potential problems or required maintenance needed. Upon the indication of any problems, the vendor will inspect the site and perform any necessary repairs. The vendor shall submit Quarterly Energy Production and Operational Status Reports no later than the 30 days after the end of each calendar quarter for a period of initial term of operation and any extension thereof from Commissioning. Each report shall include the following information: o Time period covered by the report o Operational status of any project’s components (modules, inverters, transformers) o Description of any unusual operational events that occurred during the quarter o Description of any unusual weather events that occurred during the quarter if they impact production o Description of improvements, expansion or repairs to any projects during the quarter o List of needed and/or planned improvements, expansions or repairs o Energy production for the quarter and cumulative to-date o Degradation comparison to projected performance o Description of any ownership, management, energy sales, or REC sales changes during the quarter o Name and contact information for the individual responsible for preparing and submitting the report o Copies of any engineering reports or independent evaluations of any projects completed during the quarter o Final Report Requirements to funding agencies (expected due date is 30 days after commissioning) o Maintain reasonable remote site security, including upkeep of proposed video or other measures. Interface with insurance company in event of trespassing, vandalism, natural act, or other cause for claim 9. Permitting fees & Application process The services provided by the vendor must include, but not be limited to, securing all required permits, applications, and approvals from governing agencies. The services must also include all labor, taxes, services, and equipment necessary to fully commission and operate a functional PV system at the designated Issuer sites. 17 Appendix 4: Bid Sheet Company Facility 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Site Designation Internal Designation Street 10 yr ($/kWh) PPA Pricing* 10 yr 15 yr escalator ($/kWh) 15 yr escalator Turnkey Price Purchase Installed Capacity ($/watt installed) (MW) PV Cell (mfr & model) Project Details Penetrating Mounting Inverter (Y/N) (mfr. & model) (Refer to file Bid.Sheet.xls) 18