COLORADO’S RENEWABLE ENERGY DEVELOPMENT TEAM (REDT) Pagosa Springs Geothermal Heating October 6th, 2011 1 GEO’s Renewable Energy Development Team Technical & Business Development Assistance FERC Pilot Program 2 Benefits to Applicant • Simple application process – Online application: RechargeColorado.com • Expertise Available –SRA consultants – – – – – – Guide applicants through the project applications process One point of contact through project evaluations Review project specifics and develop a financial presentation Positive feedback loop Branding of your project with technical evaluation FREE service • Potential financing – Potential Phase III presentation to financial investors or project developers. 3 GEO’s Renewable Energy Development Team Technical & Business Development Assistance FERC Pilot Program Geothermal Projects 4 Technical & Business Development Assistance Program Goals • Move well-vetted projects to the next stage of development (not to complete feasibility studies). • Support projects that have developed a basic scope and that have enough technical knowledge of the project to complete an online application. • Provide assistance for dozens Phase I projects across Colorado, representing geographical, capacity and technical diversity. • Support approximately 17 renewable energy projects through Phase III within two years. • Get projects in the ground. 5 TBDA Eligibility Eligible Technologies (<30 MW): – Biomass – Small hydro (less than 10 MW) – Solar photovoltaic and solar thermal – Distributed generation wind – Geothermal (direct-use applications and power generation, excludes heat pumps) 6 Benefits to Applicant • • • • • Up to 120 hours of free technical assistance per project Identify project barriers Propose solutions Potential funding sources analyzed and presented Access to subject matter experts Association with Governor’s Energy Office provides project credibility with investors 7 TBDA Program Process • Project Review • Thorough review of project that identifies strengths Phase I and weaknesses of project • Project Consultation • Majority of 120 Hours of Technical and Business Phase II Development Assistance provided • Project Presentation • Position project for potential presentations to investors Phase III and developers 8 FERC Small Hydro Pilot Program 9 Benefits to Applicant • Simplified application process – Streamlined process trims review time from years to months – Online application: RechargeColorado.com • Expertise Available –SRA consultants – – – – Guide applicants through the process One point of contact through process Help you complete a thorough application FREE service • Resource agency coordination – Includes CO Div. of Wildlife, US Forest Service, US Fish & Wildlife Service, Trout Unlimited, CO Dept. of Public Health & environment, and more.. – All agencies are coordinated in parallel 10 FERC Program Qualifications • Existing infrastructure (incidental hydro) • No increased stream diversions • Water rights, permits, licenses, etc. • No adverse effects: water, fish, cultural, historical, etc. • Must qualify for FERC conduit exemption or 5 MW exemption 11 Example FERC Project • 25kW system • Water currently used by rancher for irrigation • Use hydropower system to power irrigation system • No infrastructure changes or increased diversions • Saves applicant time and money 12 Pagosa Springs Wells 13 Pagosa Springs Geothermal District Heating Major findings from requirements investigation include : •Installed in December 1982, the geothermal heating loop is now reaching a reasonable life expectancy. Extensive evaluations outside the scope of this report are needed to determine the next steps for this heating loop as well as any expansion opportunities. •Current low prices of natural gas at $0.59/therm make geothermal systems very challenging. •Density study shows the line heat density of the Pagosa Springs system is appropriate. •A robust metering and billing system is needed to ensure customer satisfaction and decrease operation costs. •Anything that can be done to level the load and increase revenue from delivered heat will improve the system economics. 14 Pagosa Springs Geothermal District Heating Major findings from requirements investigation include: •Opportunities exist for the city to improve system performance by lowering return water temperatures. One way is by using return water lines to perform snow melt operations. •A current and future customer satisfaction survey will be important prior to any expansion plans. •Adding controls on customer systems may improve customer satisfaction. •If the system were “retuned” to achieve the 110 °F return temperature from the consumers this would likely solve any perceived capacity problem with the system. •The rate structure should be configured to reward those who use return water for their snow melting systems as opposed to those who use supply water, and as with space heating customers, the return temperatures of snow melt customers should be controlled to much lower temperature, perhaps as low as 50 °F. 15 Thank You! Joe McCabe Renewable Energy Development Team SRA International 303.233.1186 Joseph_McCabe@sra.com Give me your card and we can follow up. 16 Questions? 17