First solar inc kingbird solar project power purchase agreement
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First Solar, Inc. Kingbird Solar Project Power Purchase Agreement PowerPoint PPT Presentation


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First Solar, Inc. Kingbird Solar Project Power Purchase Agreement. City Council – Agenda Item 13 September 9, 2013. Project & Contract Overview. 20 MW (AC) single-axis tracking solar PV To be located on 324 acres in Rosamond, CA

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First Solar, Inc. Kingbird Solar Project Power Purchase Agreement

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First solar inc kingbird solar project power purchase agreement

First Solar, Inc.Kingbird Solar ProjectPower Purchase Agreement

City Council – Agenda Item 13

September 9, 2013


Project contract overview

Project & Contract Overview

  • 20 MW (AC) single-axis tracking solar PV

  • To be located on 324 acres in Rosamond, CA

    • Site includes Kingbird B (another 20 MW project – output purchased by SCPPA)

  • Guaranteed commercial operation by January 2016 (Fiscal Year 2016)

    • Add approx. 5.5% RPS

  • PWP to pay for all energy “as available”

    • ~60,000 MWh/year (1st year)

    • Expected output degradation ~0.5% per year

  • Price = $68.50/MWh through term of contract

  • Includes Resource Adequacy capacity

  • Option to Purchase

  • 20 year term with option to extend by 5 years


Project benefits

Project Benefits

RPS Category 1 resource relatively close to Pasadena

Feasible to operate and maintain if purchased


Project benefits1

Project Benefits

  • Portfolio Fit

    • Project size is a good match for PWP requirements

      • 20 MW x 33% Capacity Factor

    • PV production is variable, but generally aligns well with PWP demand


Project benefits2

Project Benefits

  • Viability

    • Several initial milestones already achieved

      • Site control, interconnection studies, CEC pre-certification, CEQA;

    • Experienced project developer (First Solar, Inc.) with several utility scale projects already operating/under construction

    • Solar PV is a proven technology


Project benefits3

Project Benefits

  • Value

    • Renewable energy, environmental attributes and system resource adequacy.

    • Facility purchase option at the 10th, 14th, or 18th contract year, or in the event of a default under the power purchase agreement.

    • Price is competitive with other offers for similar renewable products.


Risks

Risks

  • Some risks Include:

    • Project development/construction failure or delay

    • Counterparty credit/default

    • Resource underperformance

    • Comparative price risk

      • Future or alternative resources may have lower prices

  • Contractual provisions attempt to mitigate many risks, e.g.:

    • Performance security

    • Liquidated damages

    • Guaranteed energy production

  • Although there is risk that future resources may have lower prices, this contract is also a hedge against future price increases and volatility


Price comparison

Price Comparison

Renewable Energy Contracts Price Comparison

[1] Contract prices exclude costs of transmission, losses, and integration fees[price with * does not include RA capacity; all others do]


Renewable portfolio

Renewable Portfolio

Current Renewable Energy Portfolio Summary (GWh)

[1] A gigawatt-hour (“GWh”) is equal o 1,000 megawatt-hours (“MWh”)


Impact for a typical customer using 500 kwh month

Impact for a Typical Customer Using 500 KWh/Month

CURRENT

(without Kingbird)

FUTURE(2016 onward with Kingbird)*

Total $87.20

Total $87.72

*Assumes other charges in the electric bill remain the same as current bill

Note: Current total bill includes all existing renewable contracts


Fiscal impact cumulative

Fiscal Impact - Cumulative

Before Kingbird:

After Kingbird:

Cumulative net impact of all renewable contracts in the energy portfolio:

Approximately $8.5 million per year

Approximately 0.73 cents per kWh starting in January 2016

  • Cumulative net impact of all existing renewable contracts in the energy portfolio:

    • Approximately $7.3 million per year

    • Approximately 0.62 cents per kWh

  • Cumulative net impact will increase by approximately:

  • $1.2 million per year

  • 0.11 cents per kWh

  • $0.52/month for a 500 kWh average customer


Thank you questions

Thank You ~ Questions?

Back Up Slides


Appendix rps portfolio after kingbird

Appendix – RPS Portfolio After Kingbird


Selection process

Selection Process

Project was offered July 24, 2013 into, and selected as part of, the open SCPPA Request for Proposal process.

Determined by PWP to be one of the “best fit/least cost” resources from among almost 300 offers.

Also determined to be exempt from Pasadena’s competitive bidding rules as a contract for professional or unique services, and as a contract potentially relating to the acquisition of real property(includes a purchase option).


First solar experience

First Solar Experience

SOME COMPLETEDFIRST SOLAR FACILITIES


First solar experience cont

First Solar Experience (cont.)

SOME FIRST SOLAR FACILITIES UNDER CONSTRUCTION


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