7d supp reduced

Item No: 7d_supp
Meeting Date: October 24, 2017
Evaluating Solar Energy
at the Port of Seattle
Leslie Stanton, Greg Whiting,
Paul Meyer and Terrance Darby
October 24, 2017 


1

Overview
Port goals
Solar analyses
Maritime
Aviation
Comparing costs and benefits among
environmental strategies
Staff recommendations
Approach shows trade-offs and opportunity to consider new goals
10/18/2017                                                      2

Port Goals
Century Agenda            New Policy Values?
Reduce port-owned carbon       Reduce reliance on
emissions by 50%               hydropower and impacts on
Meet all increased energy          salmon/marine life
needs through conservation       Demonstrate Port leadership?
and/or renewables             Energy Resilience?
Support local business growth
and workforce development
(within solar industry)

Seeking Commission guidance on renewable electricity strategies
10/18/2017                                                         3

Port Direct and Indirect Carbon Emissions



Heating and cooling are significant portion of Port carbon emissions
4

Carbon Reduction Strategies
Energy efficiency
Stage 3 Mechanical
Lighting upgrades
Convert CNG buses to electric
Renewable natural gas
Purchase renewable diesel
Green Fleet
PSE's Green Direct 
Port is pursuing multiple carbon reduction strategies
5

Electricity and Carbon at Port Facilities

Aviation                          Maritime 
Served by BPA, PSE, and SCL                  Served by SCL ($0.09/kWh )
Act as own utility                           Low carbon electricity
Costs and carbon content vary among
three utilities

Location and utility influence project costs and carbon reduction
10/18/2017                                                      6

Electricity at Sea-Tac
Puget Sound Energy          BPA                 Seattle City Light
2% of electricity                97% of electricity            1% of electricity 
40% carbon free                98% carbon free             98% carbon free
$0.10/kWh                    $0.04/kWh                 $0.09/kWh



S                                      N
7

Maritime Solar Analyses
Evaluated 9 locations
Fishermen's Terminal: Net Shed 5
Pier 69 Building
Large scale array at CEM
(conceptual)
Preliminary assessment on 6 other
building retrofits
Net Shed 5 Solar Demonstration project underway
10/18/2017                                                      8

Costs of Solar at Maritime
Location      Estimated        Net        % Carbon       Carbon
Project         Present       Reduced /yr.         Cost
Cost ($)     Value (NPV) ($)    (for location)       ($/MT)

FT Net Shed 5      $250K         -$201K          2%           $22K 

Pier 69      $383K ($700K      -$255K           4%            $5K 
less $317K grant) 
CEM near T5      $19M        -$12.6M        15%          $6.4K

Solar projects show negative NPV but with environmental benefits
10/18/2017                                                      9

Pier 69 Solar
Received $317K grant award from WA Department of Commerce
Grant provides:
Project payback 33 years
Carbon reduction cost per metric ton is comparable to SBM lighting
project.
Grant improves financial return, but NPV is still negative
Evaluating alternative project delivery methods to manage construction costs
ESCO (energy service company)
Port-led project
Engineered system
Pier 69 project with grant provides better financial returns and carbon reduction

Airport Solar Analyses
Conducted by nation-wide firm HMMH
Identified 8 locations
All constrained due to limited footprint
All avoid glint and glare for pilot/aircraft safety
Locations differ in cost and carbon
reduction due to:
Ground vs. roof mount
Different electricity rates and carbon emissions
Glare standards restrict panel orientation and
reduce generation potential
Airport property has locations but potential challenges
10/18/2017                                                     11

Costs of Airport Solar Projects
Location           Upfront Cost Range     Net Present Value Range
(Million $)              (Million $)
Main Parking Garage (BPA)         $7.3 to $20             -$5 to -$18 
South Sat Roof            $0.90 to $3.0          -$0.50 to -$2.6
(BPA)
Tank Farm Ground          $0.56 to $2.3         -$0.28 to -$2.0
Rental Car Wash Roof (SCL)        $0.82 to $2.7          -$0.46 to -$2.3
Airfield South (PSE)            $4.5 to $13            -$1.8 to -$11 
All airport solar projects have negative NPV, even before including Port soft costs
10/18/2017                                                     12

Carbon Benefit from Airport Solar Projects
Location              % Carbon           Carbon
Reduced/yr.          ($/MT)
Main Parking Garage (BPA)          0.27          $2,800 to $10K
South Sat Roof             <0.001          $2,200 to $11K
(BPA)
Tank Farm Ground           <0.001         $1,800 to $12K
Rental Car Wash Roof (SCL)         <0.001          $2,400 to $12K
Airfield South (PSE)               0                N/A
All airport solar projects provide minimal carbon reduction
10/18/2017                                                     13

Key Uncertainties
Assumptions
Construction costs 
Lifespan of PV
Availability/magnitude of grants and incentives 
Roof condition and applicability for solar 
Future electricity costs 

Uncertainties regarding project costs 
10/18/2017                                                     14

Initial Findings
Financial returns vary across locations
In all locations, cost to produce electricity from solar are
greater than costs to buy
Modest to small GHG emission reductions
Can leverage Washington-based industries and workers
Grants/tax rebates/electricity incentives may
significantly reduce costs
Reduces reliance on hydro electricity
Solar projects show negative financial returns but advance some Port goals
10/18/2017                                                     15

Consider Solar in Eastern WA
Projects more cost-effective due to:
Economies of scale
~25% "more sun" in eastern WA
Power purchase agreements (PPAs)
Opportunities for partnerships
Off-site projects likely meet Port goals at lower cost
10/18/2017                                                     16

Comparing Costs Among Strategies
Strategy                       Approximate      % Carbon
Cost/MT Carbon    reduced/year
AV Solar: Main parking garage            $10,000           0.3
Maritime Solar: P69                   $5,000            4
SBM lighting upgrade                  $4,000          1.4
Renewable Natural Gas                $400           70 
Convert buses to electric               $350 to $900         10 
Stage 3 Mechanical Conservation           $300            4
Renewable Diesel (fleet)                 $125             2
Green Direct  Wind                   $61             5

Solar projects result in relatively high cost per ton of carbon reduced
10/18/2017                                                     17

Comparing Strategies to Goals
Increase                 Promote     Reduce
Strategy                  conservation  Cost/MT     workforce    Reliance on
and       Carbon      development  hydro-
renewables              (WA)        power 
AV Solar: Main parking garage                 $10,000 
Maritime Solar: P69                       $5,000
SBM lighting upgrade                      $4,000
Off-site Solar                                TBD
Renewable natural gas                     $400 
Convert buses to electric                    $350 - $900 
Stage 3 Mechanical                        $300 
Renewable Diesel (fleet)                      $125 
Green Direct  Wind                       $61 
Renewable energy projects advance multiple goals/values
10/18/2017                                                     18

Staff Recommendations
Continue project development for Pier 69
solar
Pursue off-site renewable energy projects
for Airport, including both solar and wind
Continue to pursue cost-effective strategies
with environmental and economic benefits
(e.g., RNG, energy efficiency).
Results show a range of renewable energy projects can advance Port goals and values
10/18/2017                                                     19

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