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Projects Updates for Wind Power Purchase Agreement (PPA)

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  1. iWG agenda packet

  2. F&S response to iWG assessment

    This letter is in response to the Illinois Climate Action Plan (iCAP) Working Group (iWG) recommendation #EG001, which Facilities & Services (F&S) received on August 28.  F&S agrees that the campus should investigate the feasibility of entering into a Wind Power Purchase Agreement (PPA) to increase the use of renewable energy for campus. 

    Regarding the EG001 general statements about campus energy use, data points, and assessments of anticipated financial impacts, F&S will need more time to compile a useful response.  Regarding the three specific EG001 recommendations, I have consulted with Al Stratman, Kent Reifsteck, and Mike Larson to provide the responses below. 

    1. Recommendation: “The campus should undertake a Power Purchase Agreement for wind energy. Based on currently available information, we recommend that the amount be at least 119 million kWh per year (25% of our total electrical usage), but we should aim to purchase as much as we possibly can, given any technical, financial, and contractual constraints.”

    From this recommendation, we understand that the iWG recommends entering into a Wind PPA for at least 25% of the FY15 electrical demand.  However, the campus cannot make an informed decision about whether or not to undertake a PPA until the financial impact is fully understood.  A key component of the financial impact is the fully burdened cost of the purchased wind power, which will not be known until after the successful completion of the Request for Proposal (RFP) process.  Therefore, F&S does support pursuing a PPA so the feasibility can be evaluated, but we do not support making a final decision to undertake a PPA until completely evaluating the financial implications.

    1. Recommendation: “The effort to secure a PPA should be pursued as quickly as possible. The campus should inform PEI that this is a top priority, and that the review of RFI submittals and the issuance of the RFP should be expedited by all necessary means.”

    During this summer, F&S worked with PEI to define a schedule for issuing a Request for Information (RFI) and a subsequent Request for Proposals (RFP).  This schedule shows a completion date of April 2015, so that the PPA could commence with delivery of power on July 1, 2015, at the start of FY16.  We have informed PEI that this is a top priority, along with safety and reliability of the overall campus energy system.

    1. Recommendation: “The iCAP Working Group should be kept informed and advised during the process of pursuing the RFI, RFP, and PPA, and given the opportunity to provide recommendations before key decisions are made about the PPA, to ensure that technical and financial considerations are appropriately balanced with our campus sustainability objectives.”

    F&S values the advice and input from sustainability advocates on campus.  Therefore, we suggest developing a set of interim checkpoints for keeping the iWG informed as the process unfolds.

    To meet our Climate Commitment and achieve carbon neutrality, there is a lot of work that needs to be done.  I look forward to working with the iWG and the SWATeams as this recommendation is pursued.

    Sincerely,

    Morgan B. Johnston

    Associate Director of Sustainability, F&S

  3. Updated RFP schedule from PEI

    Associated Project(s): 

    I am providing an updated schedule for the RFP related to a wind-power PPA for UIUC.  The change reflects a request by one vendor to extend the response period by one week.  Because of that, we have made other slight modifications to target dates for some of the milestones, but the original completion date of April 30, 2015 is maintained.

    If you have any question, please let me know.  Dan Mortland

    Attached Files: 
  4. revised schedule

    Associated Project(s): 

    Morgan,

    I understand the deadline for submitting the RFI was extended until September 5 based on the requests from some vendors for more time to prepare their responses.

    UA / PEI will be forwarding more info and will be looking to keep the overall schedule from being extended.

    Thanks

    Kent

  5. EGen001 Wind PPA recommendation - Transmittal to the unit

    The SWATeam recommendation complete with the iWG Assessment with comments from all the iWG members was transmitted to the Facilities & Services on August 28th, 2014.

    For any future updates on this item, please visit the Wind Power Purchase Agreement (PPA) project.

    See iWG Assessment for EGen001 Wind PPA here.

    See SWATeam recommendation EGen001 Wind PPA here.

  6. EGen001 Wind PPA recommendation - Assessment with all comments

    The iCAP Working Group (iWG) met on August 28th, 2014, to discuss the EGen001 Wind PPA recommendation, and they started the assessment for this recommendation. 

    See the attached file for complete assessment with comments from all the iWG members.

    See SWATeam recommendation EGen001 Wind PPA here.

  7. EGen001 Wind PPA recommendation - Submittal

    The eGen SWATeam submitted a recommendation to the iWG stating, "We strongly endorse pursuing Power Purchase Agreements (PPAs) with one or more Wind Farms as soon as possible. Given current market conditions, we believe that a PPA with one or more Wind Farms presents a great opportunity to purchase renewable energy in support of the campus iCAP targets."

    See attached the SWATeam recommendation EGen001 Wind PPA complete with comments from all the eGen SWATeam members.

  8. F&S receives Wind PPA recommendation

    Evan:

    We contacted UA. They're supposed to give us a RFP schedule next week. That should give us a better idea of the timeline.

    -Al Stratman

    From: Evan DeLucia [mailto:delucia@life.illinois.edu]
    Sent: Thursday, May 29, 2014 5:39 PM
    To: McCall, Benjamin
    Cc: Stratman, Allan
    Subject: SWAT report on energy generation

    Ben,

    In the absence of a fully formulated SWAT process - iWG and the Sustainability Council have yet to be formed - I forwarded the May 2014 position paper from the 'energy generation' team directly to Al Stratman for consideration.

    Under the SWAT process, the teams should be... "developing and recommending specific actions or initiatives the campus should under take to meet iCAP targets..." The energy generation SWAT did a nice job of recommending a specific action that would help meet our targets.

    To paraphrase, Al responded...

    • the concept of a PPA is meritorious and has potential
    • F&S is evaluating this plan
    • some of the issues that need to be considered include pricing options, length of agreement constraints, REC pricing alternatives
    • F&S is working to obtain hard data on pricing and other details before moving forward

    I've taken the liberty of copying Al to be sure I didn't misrepresent his response to me.

    Al, do you have any idea of what might be a reasonable time frame would be for completing an analysis of the feasibility, costs, and benefits of purchasing wind power for campus?

    Cheers,

    Evan

  9. Recommendation: Wind PPA

    Here is the first recommendation from the Energy Generation SWATeam.

    "We strongly endorse obtaining Power Purchase Agreements (PPAs) with one or more Wind Farms as soon as possible.  It is unlikely that a better opportunity to purchase renewable energy will present itself in the foreseeable future."

    Attached Files: 

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