meeting utility resource needs with solar

Meeting Utility Resource Needs with Solar: The Merits of the Aurora Solar Project

Nathan Franzen | Geronimo Energy, Director of SolarLindsey Hemly | Fredrikson & Byron, Legal Counsel

March 19, 2014

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The Impact of Window Energy Efficiency and How to Make Smart Choices

Thursday, April 10th11:00 – 12:00 CST

Window retrofit technologies applicable in Minnesota’s two climate zones as a way for building owners to save money.

Target Audience•Building managers and facility professionals•Utility commercial program managers•Commercial and residential building envelope contractors•Window and window film manufacturers/installers•Building scientists and design professionals

Gustav Brandstrom Project Engineer, CEE

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Presenters & Overview

Nathan FranzenDirector of Solar

Lindsey HemlyLegal counsel

Presentation Outline•Geronimo background•Overview of project site, capacity, and innovations•Benefits of this project over other resource options•Replicability of project model

Geronimo Energy• 4th largest wind energy developer in

the U.S.A.• Headquartered in Minneapolis, MN • Decades of expertise, on-the-ground

experience • Over 1,300 MW set for construction

2014-2016• Ground-mount, rooftop, utility and

commercial scale solar offerings• Geronimo has a strategic partnership

with Enel Green Power

6March 19, 2014 www.geronimoenergy.com

Project Specifications •Operational Capacity: 100 MW •Location: 16 Minnesota counties•Construction Timeline: 2015 - 2016, or 4-9 months for each site •Number of Sites: ~25 (primary and alternate)•Project Cost: ~$250 million •Local Tax Revenue: up to $240,000 annually* •Expected COD: December 1, 2016


Project Details•100 megawatt (MW) AC distributed solar resource•Utilizes solar arrays from 2 - 10 MW across Xcel’s service territory•Interconnects to multiple Xcel Energy distributed substations in MN•Provides energy and MISO accredited capacity to Xcel and its customers• The Aurora Solar Project will provide a cost

effective alternative to thermal generation.


Unique design delivers many benefits:•71% MISO accredited capacity–Helps utilities meet reliability requirements–100 MW AC = 71 MW of accredited capacity

•Distribution delivery = Reduction in line loss (4-5%)•Elimination of transmission costs–Increases overall grid capacity


Unique design delivers many benefits:•Geographic diversification of generation assets–No point source failure (think polar vortex)

•Cost–Fixed price, no fuel cost uncertainty

•Meets solar standards


How Did We Get Here?• PUC found that Xcel had a need

of up to 500 MW by 2019• Need was defined as “peaking or

intermediate” capacity• Xcel wanted to propose its own

resources to fill the need• With Xcel participation, the PUC

evaluates and selects the best resource(s)


What Was Proposed?Xcel: 3 208 MW Combustion Turbines (CTs)Invenergy: 3 160 MW CTsCalpine: 345 MW expansion of Mankato Combined Cycle (CC)GRE: 200 MW short term capacity creditsGeronimo: Aurora Solar

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ALJ Lipman’s Recommendation:• Xcel’s actual need is uncertain• Aurora is most economical option– Least cost option based on Strategist modeling– Lowest Levelized Cost of Energy (LCOE)

• Scalability– Solar modular design and short lead time is more suited in a

situation where the need is rapidly changing.


ALJ Lipman’s Recommendation:• Renewable Preference Warranted• Gas proposals not fully vetted. – Issues with non-firm gas, unresolved interconnections etc.– Gas bidders did not offer “fixed price” leaving rate payers exposed.

• Aurora will help meet numerous state policy goals, including the solar standard

• If the PUC finds additional need, choose GRE


ALJ Lipman Determines Aurora Solar Is Most Economical Option

"Since 1991, Minnesota has had a statutory preference in favor of renewable energy sources. Yet, that preference is overridden when the nonrenewable source has a lower total cost. Notwithstanding the statutory preference, it seemed that nonrenewable energy sources always won the head-to-head cost comparisons. Not anymore." – ALJ Lipman


Next Steps• Xcel and DOC disagree with ALJ report• Xcel recommends Black Dog + Calpine and

Invenergy• PUC can accept, reject or modify ALJ

recommendation • Oral Argument 3/25, Deliberations 3/27

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In SummaryCompetitive Resource Acquisition Process •Pros:

– Transparent process– Allows side by side comparison of

competing proposals– Eliminates Utility bias towards rate based

projects

• Con’s– Expensive, but could be improved upon

•Next Steps


Contact Us [email protected]

www.geronimoenergy.com

Thank you!18March 19, 2014 www.geronimoenergy.com

Question & AnswerWebinar Link:

http://www.mncee.org/Innovation-Exchange/Resource-Center/

[email protected]

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meeting utility resource needs with solar

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