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HomeMy WebLinkAboutSouthold Landfill Solar PV Feasibility Study212,803,,B8~,8 8663798026, i ,E~@brigh~pawer,con~ I1 Hanowr Square 21st Floor New York, NY 10005 $outhold Landfill Solar PV Feasibility Study Prepared Town of Southold Prepared By: Henry Misas Bright Power, inc. 11 Hanover Square, 21~t FI New York, NY 10005 212.803.5868, x2009 June19,2012 Feasibility Study by Bright Power for the Town of Southo/d Table o{ Contents 1. Executive Summary ....................................................................................................................... 4 2. Potential Solar Project .................................................................................................................. 5 2.1. Landfill .................................................................................................................................... 5 2.2. Town Collection Center ........................................................................................................ 6 2.3. Solar Land Lease Agreement ............................................................................................... ? 2.4. Technology ............................................................................................................................ 8 3. LIPA Incentive and Interconnection ............................................................................................. 9 3.1. FIT Program ........................................................................................................................... 9 3.2. Size limits and Interconnection Procedures ........................................................................ 9 4. Regulatory ................................................................................................................................... 10 4.1. NYS-DEC Post-Closure Modification Approval ................................................................ 10 4.2. State Environmental Quality Review Act (SEQRA) ............................................................ 10 5. Conclusion ................................................................................................................................... 11 Appendix A: LIPA FIT Application Process Flowchart ..................................................................... 12 Appendix B: Schletter PVMax3 Product Sheet ................................................................................. 13 6155 Cox Lane, Cutchogue, NY 2 Feasib#ity Study by Bright Power for the Town of Southo/d Disclaimer This report contains analysis and projections that are based on the best information we have available, however this report comes with no warranties, expressed or implied. Bright Power Inc. shall not be held liable for any losses incurred in association with the use of this report, including but not limited to lost profits due to actions or investments made based upon the contents herein. 6155 Cox Lane, Cutchogue, NY 3 Feasibility Study by Bright Power for the Town of Southo/d 1. Executive Summary This report explores the feasibility of developing a solar Photovoltaic (PV) system at the Southold municipal landfill, to enter in the Long Island Power Authority (LIPA) Feed-in Tariff (FIT) incentive program. A detailed analysis of the facility has determined the following potential: · Expected land use arrangement: land lease for solar development · Estimated total site solar capacity: 3.78 MW- DC · Total usable (Iow slope) area for a ballasted system: 12.14 acres o Average revenue per acre: $5000/yr o Total potential revenue for the town: $60,000/yr · Expected system size based on feasibility study: 2 MW- AC · Expected revenue for town: $45,000/yr · Timeframe to construction start date: dependent on size of project o Less than 2 MW - DC: 9- 18 months o More than 2 MW - DC: 12- 24 months In May of 2012, Bright Power assessed the Town of Southold's portfolio of municipal facilities, in order to select the candidates with the highest solar potential and highest revenue opportunity for the town. Bright Power analyzed each facility via the use of satellite imagery. No site visits were conducted in order to perform this analysis. The portfolio analysis determined that the Town should focus its short-term efforts on a solar project sited in the capped landfill. Bright Power is currently managing a competitive solar developer~ selection process through a public Request for Proposal (RFP), while simultaneously presenting the project to LIPA for interconnection to their grid and inclusion into their FIT program. The next steps for this project: 1. Contractor selection and preparation of submission to LIPA by FIT opening date 2. FIT is awarded and grid interconnection is approved 3. Environmental permits are applied for and obtained 4. Construction, interconnection, and commissioning of system 5. The Contractor will operate and maintain the system for the duration of the contract while making lease payments to the Town. If the solar project successfully enters the Feed-in Tariff program, we recommend a consultant experienced in solar installation be retained as a representative for the Town to ensure that the system installed is safe, durable, and will not cause damage to Town facilities. ~ The solar developer will also be referred to as the Contractor. 6155 Cox Lane, Cutchogue, NY 4 Feasibility Study by Bright Power for the Town of Southo/d 2. Potential Solar Project 2. 1. Landfi// The landfill ground area has been analyzed by Bright Power for solar potential capacity. It is estimated that the site can fit a solar array with a maximum nameplate capacity of 3.7 MW-DC. The safest mounting method for the array is a ballasted racking system, since this method will not penetrate the geo-membrane. Even though it is feasible to penetrate the geo-membrane, it is recommended that the membrane is not disturbed to avoid potential environmental issues. A ballasted racking system must be located in shallow grade terrain. Bright Power obtained a topographic survey from the landfill design engineers and divided the terrain into areas based on average slope, as seen in Figure 1. Areas colored green and blue have a slope suitable for a ballasted racking system, while areas colored yellow and red have too high of a slope. The high grade areas can be leveled to accommodate the ballast footings, although this process can be prohibitively expensive for the solar developer. The southern portion has large areas with gradual slopes and can therefore fit approximately 2 MW-DC of solar capacity. The northern portion has steeper, more complicated terrain, and thus the potential capacity is approximately 1.7 MW-DC. Additionally, the north-most ridge is north-facing and thus not suitable for a solar array as inter-row shading becomes significant. Finally, the landfill ground area has several swales that act as water runoff channels into the water catchment basins, in order to protect the geo-membrane. Landfill-sited solar equipment is typically placed 5 feet away from the swales. The southern area has a swale that cuts across through the center, while the northern area has several swales and valleys that divide the area. Table 1. Landfill Solar PV Potential2 Estimated Installation Estimated Production FIT revenue Area # Mount Type Area (ft2) Capacity (kW) (kWh/yr) ($/yr) TOTAL Ballasted 527,681 3,694 4,314,320 $ 949,150 2 The FIT revenue will be accrued by the owner of the solar system. The Town of Southold will lease the land to a solar developer that will finance, construct, own and operate the system. FeasJbJ//t? Study by Bn~ht Power for the Town o{ Southo/d Figure 1. Aerial Image of the Landfill Solar Areas. Blue and green areas are most suitable for solar installation while yellow and red areas require some earthwork 2.2. Town Collect~on Center The Collection Center has a large un-obstructed roof, which can be fitted with a flush-mounted roof solar array. Both sides of the roof could be used for the solar system, as seen in Figure 2. Table 2. Collection Center Solar PV Opportunities Estimated Installation Estimated Production FIT Revenue # Mount Type Area (ft2) Capacity (kW) (kWh/yr) ($/yr) Total Flush Mount 10,806 86 98,291 $ 21,624 Feasibility Study by Bright Power for the Town of Southo/d Figure 2. Aerial Image of tl~e Collection Center 2.3. ~Co/ar Land Lease Agreement Solar systems sited on municipal landfills are typically developed by solar contractors that lease the land. The duration of the lease is the same as the duration of the Power Purchase Agreement (PPA), agreed upon between the developer and the off-taker (the entity that will purchase the electricity generated by the solar system). In the case of Southold, the off-taker is LIPA, who will sign a 20- year PPA with the developer. The advantage of implementing a land lease agreement is that the town is not responsible for designing, permitting, constructing or operating the solar system. Constructing a large solar system on a landfill requires specialized experience and careful handling of environmental issues to avoid any penalties down the road. The solar development presents an opportunity to use the land that would otherwise remain unproductive, and the lease payment can be an passive way to offset operational costs of the facility itself. Bright Power anticipates an annual lease payment of around $5,000 per acre of land used for the solar system. With approximately 12 acres of land available for a ballasted solar system, the land lease can generate a total of $60,000 per year for the town. However, the final system size may be less than the total potential size, as will be explained in Section 3.2. Feasibility Study by Bright Power for the Town of Southo/d Bright Power released a public RFP for this project on June 8th, 2012. A recommended bidder report will be presented to the town, which includes a proposal levelizing matrix and discussion on the following evaluation criteria: 1. Lease payment amount 2. Developer experience with landfill-sited solar systems of similar size 3. Feasibility of project, which includes the likelihood of entering into the FIT reservation queue, project completion timeframe, and technical competence to assure interconnection to LIPA's grid 2.4. Techno/ogy The solar PV panels (also known as modules) used for these long-term PPAs are typically constructed with silicon-based photovoltaic material and encased in a sturdy aluminum frame to provide robustness. Several panels are wired together to form a solar array. Most manufacturers in the PV market provide a strong warranty on their panels, with a standard 5 to 10 year product warranty (guaranteeing part reliability) and a standard 20 to 30 year power warranty (guaranteeing power generation). The racking system that will be employed in this project will consist of steel or aluminum mounts that are held in place by the weight of concrete footings (ballasts). The racks will be placed on terrain that is shallow enough to avoid sliding of the footings. The Schletter PVMax3 ballasted system can be installed at Iow cost on slopes of 3 degrees or less (see Appendix B: Schletter PVMax3 Product Sheet). This racking system is highly efficient as the tilt angle can be raised to an optimum production level (typically 20 - 25 degrees). Other ballasted solutions can be installed at higher slopes, yet there is a tradeoff in the allowable tilt angle range. It is anticipated that there will be some earthwork required to level the soil above the geo- membrane to accommodate the racking system. The optimum array layout will account for this and avoid terrain areas that feature high slope in order to minimize expensive leveling. The developer will ultimately choose a racking solution that presents the lowest cost opportunity through a combination of familiarity, installation time, and Iow leveling requirements. Finally, inverters are necessary to convert the DC power output of the array into AC power that can be fed into the grid. For mid to large scale applications, central inverters are desired as they can handle a large input of electricity produced from the array and output it from central points, thus increasing system efficiency and driving down installation costs. Feasibility Study by Bright Power for the Town of Southo/d 3. LIPA Incentive and Interconnect/on 3. 1. F/T Program The Long Island Power Authority (LIPA) is set to launch its Feed-in Tariff (FIT) financial incentive program on July 2'`a, 2012. FIT installations are "in front of the meter;" therefore the electricity is fed directly into the grid. In this scenario, the electricity consumption of the facility will not be offset by the solar system. For installations that qualify for this incentive, LiPA will buy the electricity produced at a fixed rate of $0.22/kWh over 20 years. Feed-in Tariff solicitations in other states have lasted as short as a period of minutes, as the award of this incentive is first- come-first-served. In order to prepare the incentive application in time for the launch date, Bright Power has fast- tracked a solar developer selection process, that will result in a strong application with the goal of securing a place in the FIT reservation queue. Bright Power has made various inquiries into the details of the LIPA program, including attending the FIT Public Hearing on June 4t~', 2012, and calling LiPA representatives in order to present the Southold Landfill project. An initial scoping meeting with LiPA that initiates the Small Generator Interconnection Procedures (SGIP) is scheduled for June 21st, 2012. Bright Power and the selected developer will attend this meeting and discuss the scope of the project with LiPA and explore grid-related feasibility issues. 3.2. Size//mits and/nterconnection Procedures The FIT program has a total of 50 MW-AC of capacity that will be awarded throughout Long Island. These 50 MW-AC are allocated based on project size as follows: 5 MW-AC reserved for Category 1: system nameplate capacity of 50 kW-AC to 150 kW-AC 10 MW-AC reserved for Category 2: system nameplate capacity of 151 kW-AC to 500 kW-AC 35 MW-AC reserved for Category 3: system nameplate capacity of 501 kW-AC and over Therefore, the landfill solar project is likely to enter into Category 3, as there is a maximum potential capacity of 3.7 MW-DC. However, depending on the project size, the interconnection procedure will vary in timeframe and scope. Smaller projects have a faster interconnection review process and therefore will reserve a spot in the FIT queue more quickly than larger projects. See appendix A for a LiPA flowchart of the FIT application and interconnection process. For systems larger than 2 MW-AC, an extensive study process must be conducted in order to approve the project for interconnection, it is not clear from LIPA, if projects applying for interconnection under the FIT program that are larger than 2 MW-AC will be at a disadvantage when securing a spot in the first-come-first-serve queue. If indeed projects under 2 MW-AC get into the queue faster than the projects larger than 2 MW-AC, then it may be advantageous to cap the Southold landfill system size at 2 MW-AC in order to increase the likelihood of being awarded the FIT incentive. Feasib#ity Study by Bright Power for the Town of Southo/d Projects that fall in the 25 kW-AC to 2 MW-AC capacity range will undergo the Coordinated Electric System Interconnection Review (CESIR). A preliminary review from LIPA will inform applicants of the costs of conducting the CESIR, which is necessary for the project to be included in the FIT. Before the CESIR can begin, the developer will provide LIPA with a complete detailed interconnection design package. The scoping meeting with LIPA will give a better indication of what is the least risky system size and corresponding interconnection procedure that the developer should follow in order to have the highest chance of getting into the FIT reservation queue. 4. Regulatory 4. 1. NYS-DEC Post-C/osure Modification Approva/ Bright Power presented the Southold landfill-sited solar PV project to the NYS Department of Environmental Conservation (DEC) via a telephone conversation with Syed Rahman, a Materials Management Engineer at the Region 1 branch located in Stony Brook University. During this conversation, the DEC representative indicated that the solar developer must obtain approval to modify the post-closure permit of the landfill before construction work begins. A report certified by a NYS Professional Engineer (PE) is to be submitted to the DEC office, addressing the following concerns: - Impact on liner/geo-membrane - Load bearing analysis - Settlement analysis - Slope stability analysis - Impact on gas monitoring and venting - Water runoff impact (clearing vegetation will increase runoff) - Impact on landfill maintenance The DEC office anticipates that they will need 35 - 60 days to review the report and provide comments. The engineer that Bright Power contacted is supportive of the project and has experience with landfill-sited solar systems. 4.2. State Environmenta/ Qua/ity Review Act (SEORA) As a municipal project, the solar developer selected to construct the solar system is required to file a full Environmental Assessment Form, stating the environmental impacts of the project. The landfill grounds are not mapped as wetlands or a habitat for rare animals or plants. The SE©RA process is open to the public and the developer cannot commence construction until the provisions of the review procedure have been complied with. 10 Feasibility Study by Bright Power for the Town of Southo/d Figure 3. Landfill-sited 3 MW solar array in Kearny, NJ, completed in May 2012 5. Conclusion The feasibility study of this facility indicates that it has the potential to accommodate a large solar PV system and generate passive revenue for the Town. Bright Power has received proposals from several experienced, highly interested solar developers and will provide a preliminary recommendation for bidder selection to the Southold Town Board during their working session on June 19tk, 2012. Several steps are needed before the solar system can be constructed, which include acceptance into LIPA's Feed-in Tariff incentive program and completion of their interconnection procedures. Additionally, the project needs approval from NYS-DEC in order to modify the landfill post-closure permit. Bright Power will continue to work with the Town and the selected developer to ensure that the solar system project is awarded the LIPA Feed-in Tariff incentive, and is ready to continue consulting with the Town through the completion of the project as the town's representative. 11 ?eas/b///'t)/ Stud)/ b)/ Br/~qht Power for the Town of $outho/d Appendix A: LIPA FIT Application Process Flowchart NO NO i YES YES 12 Feas/b///'ty Study by Bright Power for the Town of Southo/c/ Appendix B: Schletter PVMax3 Product Skeet ~ ~C~&ETTER 13 Feas/b///'ty Study by Bright Power for the Town of Southo/c/ 14