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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