LADWP Feed-in Tariff (FiT) Program Workshop LABC & Council District 14 Councilmember Jose Huizar November 12, 2014
Presentation Overview LADWP Power System Background FiT 100 Overview FiT 50 Overview FiT Expansion 1
LADWP Power System Background Largest Municipal Utility in the United States Regulated by Board of Commissioners and Los Angeles City Council Serving 4 Million Residents, 1.5 Million Electric Customers Total Electric Plant Capacity 7,197 MW Annual Electric Sales: 25,000 GWh with 1% annual growth Current Electric Rate: $0.14/kWh (avg) 2
LADWP Solar Programs Solar Incentive Program (SIP 310 MW by 2016) 114 MW installed and $254 million incentives paid Goal to install 280 MW by 2016 and 310 MW by 2020 Feed in Tariff Program (FiT 150 MW by end of 2016) 10 MW Demonstration Program (Board approved 4/17/12) FiT 100 100 MW Set Pricing Program (Board approved 1/11/13) (4 MW of FiT allocated for Inyo County) FiT 50 50 MW Beacon Bundled (City Council approved 7/1/2014) Community Solar Program (CSP 100 MW by 2030) 22 MW of LADWP built solar currently operating Evaluating in basin opportunities Large Scale Power Purchase Agreements Board approved 740 MW of PPAs Negotiations continue on other renewable projects 3
What is a FiT? Distributed Generation (DG) Opportunity for LADWP customers to sell energy to LADWP by using their property as the DG site Allows LADWP to purchase energy from eligible renewable projects (30 3,000 kw) within LADWP service territory Meets SB 1332 Requirements Helps meet RPS mandate of 33% renewables by 2020 4
What is a FiT? Net Metered System Feed in Tariff System 5
FiT100 Program Overview RELIABLE COST EFFECTIVE DEPENDABLE SUSTAINABLE TRANSPARENT 6
FiT100 Program Overview 100 MW installed by 2016 First come, first served Lottery drawing if oversubscribed 18 months to achieve commercial operation Up to a 20 year fixed-price contract term Launched 4 allocations totaling 75 MW 8 projects in operation (3,700 kw) Over 10 MW of executed contracts ~ 60 MW of active projects 7
100 MW Feed-in Tariff Program (FiT 100) 8
Program Participation Process Rooftop Parking Lot Open Land Find a Site Site Control Owner Leasing Determine Size of System (min 30 kw) FiT Lottery Drawing Complete FiT Application & Business Forms Development Team Developer Installer Financing Complete Interconnection Study Sign Contracts (SOPPA & IA) Build Project (18 months) 9
Program Participation Fees 10
Instructions and References Form for Re Application Simplifies application process for project applications that were submitted in a previous allocation Reduce processing and filing process 11
Instructions and References Sample Forms and Contracts 12
4 th Allocation Updates and Improvements 15 MW 4 th Allocation Capacity 4 MW set aside for small projects (3.5 MW at $0.15/kWh) Removed insurance requirement Streamlined assignment process with standard forms Clarified parcel limitations 13
FiT100 Program Status Demonstration Program 1st Allocation ($0.17/kWh) 2nd Allocation ($0.16/kWh) 3rd Allocation ($0.15/kWh) 4th Allocation ($0.14/kWh) 5th Allocation ($0.13/kWh) Offering Date Offering (MW) Active (MW) Waitlist (MW) Cancelled (MW) In Service (MW) May 17, 2012 10.0 0.8 0.0 5.6 0.7 February 1, 2013 20.0 13.3 71.2 26.6 1.6 July 8, 2013 20.0 15.0 26.5 16.1 2.2 March 17, 2014 20.0 14.9 17.9 9.4 0 August 25, 2014 15.0 11.5 2.9 0 0 Q1 2015 25.0 0 0 0 0 Each allocation has been oversubscribed for large projects 5 th Allocation outreach on groundmount prior to offering in Q1 2015 UCLA & USC study noted over 40% of projects are in LA s solar equity hot spots 14
Key Dates & Events December 2014 January 2015 February 2015 Report to Board on Program Status Seek Approval for 5 th Allocation 5th Allocation Launch www.ladwp.com/fit Contact us at FiT@ladwp.com or (213) 367-2100 15
FiT Beacon Bundled Solar Program 28 MW 22 MW 16
FiT 50 Overview 50 MW In-Basin FiT Offering 30 kw 3 MW project size $0.125/kWh average prices Project Commissioning Milestones: 16.67 MW by June 30, 2015 16.67 MW by March 31, 2016 16.67 MW by December 31, 2016 17
FiT 50 Contacts Peggy Hannon Sr. Manager, Business Development phannon@sunedison.com (301) 704-2965 Preston Schultz Sr. Project Manager pschultz@hecateenergy.com (415) 999-1427 18
Expanded FiT Structure Pace solar offerings at 12.5 MW every 3 months (50 MW/year) Future yearly Capacity offerings and technical requirements will be adjustable to negate integration issues Ultimate program size will be determined by how much musttake generation our system can reliably handle Provide four different Categories to meet different participant s needs: Small Projects, Large Projects, Blocks of Small Projects, and Blocks of Large Projects Adjust pricing in accordance to participation levels Allow price adjustments to move within their own category 19
Expanded FiT Schedule Sep-Nov 2014 Dec 2014 Q1 2015 Q2-Q3 2015 Q4 2015 Outreach for stakeholder input Update Board on development status Seek Board & City Council approval Fund and staff Expanded FiT Program Launch 20