Efficient electrification worth talking about

According to EPRI, the key to efficient electrification is an integrated energy network that gives grid operators more resources to draw upon for balancing supply- and demand-side resources.

According to EPRI, the key to efficient electrification is an integrated energy network that gives grid operators more resources to draw upon for balancing supply- and demand-side resources. (Artwork by Electric Power Research Institute)

The Electric Power Research Institute recently launched its Efficient Electrification Initiative You are leaving WAPA.gov. to analyze the impacts of electrifying the end use of energy, where it makes sense from an efficiency standpoint.

In an article in the EPRI JournalYou are leaving WAPA.gov. President and CEO Mike Howard drew a distinction between the original meaning of electrification—extending electrical service to people who lacked it—and EPRI’s demonstration program. Efficient electrification, Howard explained, looks to integrate the energy network to help achieve the most efficient use of energy and the cleanest production, delivery and consumption of that energy.

As defined in EPRI’s U.S. National Electrification Assessment, electrification refers to the adoption of electric end-use technologies to displace other commercial energy forms and provide new services. According to the assessment, electrification yields benefits to the economy that include:

  • Lower-cost power
  • Lower energy use
  • Reduced air emissions and water use
  • Improved health and safety for workers, potentially leading to gains in productivity and product quality
  • Greater grid flexibility and efficiency

More uses, less consumption
Among the assessment’s key findings is the expectation that electricity’s share of final energy consumption will grow from 21 percent today to 32–47 percent in 2050. Transportation—for personal vehicles and for commercial truck fleets and other heavier-duty applications—accounts for a large share of this growth. Advanced heat pumps, industrial process equipment and other technologies will also contribute to that increase.

The analysis considers regulatory and economic barriers and points to opportunities for financing, recalling how rural electrification financing enabled technology that dramatically increased farm production. In the 21st century, indoor agriculture through electrified production of crops could sharply reduce water and other resource consumption, Howard asserted.

Balancing act with benefits
One surprising fact that emerged from EPRI’s analysis is that even as electricity use increases, the overall use of energy decreases, hence the pairing of “efficient” with “electrification.” The entire energy system would become more efficient through efficient electrotechnologies, and become cleaner as it uses less energy to do the same work.

The efficient electrification scenario makes the entire system more dynamic, too. As more applications rely on electricity, grid operators have more resources to manage and draw upon for balancing supply- and demand-side resources.

Discover possibilities
To move the conversation about electrification forward, EPRI is hosting the inaugural Electrification 2018 International Conference & Exposition You are leaving WAPA.gov. Aug. 20-23 in Long Beach, California. Manufacturers, policymakers, academia, researchers, utility professionals and more will come together to explore the potential for electrifying at the point of end use.

This is an excellent opportunity to find out where electrification is today and where it could go tomorrow. Attendees will see the latest technologies in action and learn about the quantifiable benefits of electrification for consumers and the environment. Utilities and vendors will share cutting-edge practices from innovative programs they have implemented.

Now is the time for power providers to be talking about efficient electrification. Utilities that are ready to address the challenges and seize the opportunities can become leaders in efficiency, sustainability, service and customer satisfaction. Learn more about the conference You are leaving WAPA.gov. and don’t forget to share your stories with WAPA.

Source: EPRI Journal, 5/17/18

California building code requires rooftop solar for new homes

Starting in 2020, all new residential homes in California must be built solar ready. On May 7, the California Energy Commission approved the 2019 Building Energy CodeYou are leaving WAPA.gov. which includes that provision.

The California Energy Commission approved the 2019 Building Energy Code, which includes the provision that all new homes must be built solar ready, starting in 2020.

The California Energy Commission approved the 2019 Building Energy Code, which includes the provision that all new homes must be built solar ready, starting in 2020. (Photo by DOE Office of Energy Efficiency and Renewable Energy)

This historic revision of building energy codes is expected to drive a large investment in residential rooftop solar and energy efficiency as California pursues its goal of getting 50 percent of its energy from renewables by 2030You are leaving WAPA.gov.

In addition to mandating rooftop solar, the code contains incentives for energy storage and requires new home construction to include advanced energy-efficiency measures. Using 2017 data, ClearView Energy Partners You are leaving WAPA.gov. estimate that the mandate could require between 68 and 241 megawatts of annual distributed solar buildout.

Good for consumers, solar, storage industries
The commission stated that the new code is meant to save Californians a net $1.7 billion on energy bills all told, while advancing the state’s efforts to build-out renewable energy.

Following the commission’s decision, solar developers such as Sunrun, Vivint Solar and First Solar experienced a surge in stock prices, Bloomberg reportedYou are leaving WAPA.gov.

The updated codes also allow builders to install smaller solar systems if they integrate storage in a new home, adding another incentive to include energy storage. California has been a leader in incentivizing energy storage. In January, the California Public Utility Commission moved to allow multiple revenue streams for energy storage, such as spinning reserve services and frequency regulation.

Utilities question policy
The solar industry received a prior boost in January 2016, when the CPUC approved its net metering 2.0 rate design. The state’s investor-owned utilities asserted at the time that net metering distributed generation from electricity consumers shifted the costs for the system’s maintenance and infrastructure onto consumers who do not own distributed generation.

ClearView analysts pointed to the distributed solar mandate as a possible opening for utilities to argue that California regulators should reconsider the net metering reform proposal. According to the report ClearView published ahead of the CEC’s decision, utilities that opposed the new rate-design could claim that mandating distributed solar alters the policy landscape enough to warrant further review of the compensation levels paid to excess generation.

Source: Utility Dive, 5/9/18

Administrator’s outreach builds bridges between customers, WAPA

[Editor’s note: This story will also appear in the spring issue of WAPA’s Customer Circuit]

Like any private business, WAPA exists to serve its customers. Administrator and CEO Mark A. Gabriel has made a special point of meeting customers since he joined WAPA in 2013. In fact, he says it is one of favorite parts of the job. “Powerful partnerships drive our customer service efforts,” Gabriel explained. “When we listen to customers’ needs and concerns, we learn how we can better serve them. As our industry is evolving so quickly, this is one of the most important things we can do.”

Administrator Mark Gabriel addresses customers at the annual meeting of Missouri River Energy Services.

Administrator Mark Gabriel addresses customers at the annual meeting of Missouri River Energy Services. (Photo by Missouri River Energy Services)

Relationships matter
As it turns out, the customers like it, too. “Mark is the exception to the rule of the private sector pulling the best and the brightest away,” said Brad Lawrence, utilities director for the city of Madison, South Dakota. Lawrence first met Gabriel at the winter customer meeting for Heartland Consumer Power District. You are leaving WAPA.gov. “He clearly understood the rank and file, and he wanted to hear from ground troops,” added Lawrence, who has a military background. “It’s fairly rare that people at the bottom get a chance to explain things to people at the top.”

Making that effort to get to know customers face to face is an important piece of relationship building that often gets overlooked in today’s business environment. “It shows respect and our customers respond to that,” explained Tracy Thorne, a public utilities specialist in WAPA’s Upper Great Plains Huron office. Thorne has helped to coordinate Gabriel’s attendance at several events in the region and frequently accompanies him.

Answering questions, honoring innovation
Many different kinds of events give Gabriel the opportunity to visit “the field.” It may be a member meeting being held by one of our generation and transmission customers like the one at Heartland, or the gathering of an industry group.

Last summer, Gabriel was a guest at the annual picnic of the Northwest Iowa Municipal Electric Cooperative Association You are leaving WAPA.gov. where five WAPA customers were in attendance. Members were concerned about impending regulations before the Federal Energy Regulatory Commission and Gabriel wanted to discuss the issues. More importantly, he listened. “He was sympathetic to our concerns,” said Eric Stoll, general manager of Milford Municipal Utilities You are leaving WAPA.gov. in Iowa. “Gabriel didn’t dismiss us because we are a small customer. That really means a lot to us. We didn’t feel overlooked at all.”

Stoll recalled buzzing around town in a GEM electric vehicle You are leaving WAPA.gov. with Gabriel. “At one point, we pulled up to a curb and someone thought we were the meter maid,” he laughed.

One trip to Nebraska in 2017 was specifically to honor South Sioux City for delivering impressive innovation along with affordable, reliable power. Gabriel presented the municipal utility with WAPA’s Administrator’s Award. “The vision our customers show never fails to impress me and that is especially true of smaller utilities like South Sioux City,” Gabriel said. “It is a pleasure to meet the people who are doing this work and to bring attention to their accomplishments.”

No occasion too big, small for visit
The spring has been an active time for meeting with customers. At the end of April, Gabriel traveled to Nebraska to speak at the Big 10 and Friends Utility Conference You are leaving WAPA.gov. in Omaha. The meeting brings together facility and energy managers from Big 10 and other schools and utility professionals to discuss the business of campus utility production, distribution, metering and efficiency. Gabriel gave the keynote address titled “Radical thoughts: Providing value amid a changing energy landscape” to an audience of about 260 individuals.

Thorne noted that the presentation was very well received. “Afterward, I overheard attendees comment about how much they enjoyed Mark’s presentation—and they didn’t know I was from WAPA!” he added. “People had a lot of good questions for Mark and he had the answers. I think if it had been a smaller crowd, the discussion could have gone on for hours.”

While in Nebraska, Gabriel also attended meetings with several municipal utilities in Randolph You are leaving WAPA.gov. and Fremont, You are leaving WAPA.gov. and met with Nebraska Public Power District You are leaving WAPA.gov. in Columbus. Jody Sundsted, senior vice president and UGP regional manager, joined Gabriel for those meetings. Utility staff and consumers in small towns are engaged with the same issues as their counterparts in more urban areas, Sundsted noted. “People had a lot of questions about the Southwest Power Pool, behind-the-meter generation, battery storage,” he said. “They really appreciate getting answers from the administrator himself.”

WAPA’s experience with the Southwest Power Pool was also a topic of interest at Missouri River Energy Services’ You are leaving WAPA.gov. annual meeting in Sioux Falls, South Dakota, May 10. Gabriel’s presentation highlighted some of the challenges that WAPA and all utilities will be facing in the future, including societal changes, economic challenges and security challenges. He assured the group of continuing value and business excellence through WAPA’s focus on direction, people and performance.

“The members of MRES look forward to the update that WAPA provides each year at the MRES Annual Meeting,” said Joni Livingston, MRES director of member services and communications. “With 59 of the 61 MRES members having WAPA allocations, they are always anxious to hear about WAPA’s rates for the Pick-Sloan region, particularly since those rates have decreased in 2017 and 2018.”

Sundsted observed that Gabriel meeting with customers benefits WAPA, too. “Customers know our brand, but it helps them to put a face with the logo, to see that WAPA is people in the utility business just like them,” he said.

IREC provides online solar training for local code officials

A new rooftop photovoltaic solar array is being installed every minute in the United States, with 4 million expected to be generating power by 2020. Knowledgeable building code professionals are needed to make sure these systems are installed correctly and safely. To help ensure quality inspections, the Interstate Renewable Energy Council You are leaving WAPA.gov. has launched a new online interactive video solar training series You are leaving WAPA.gov. for local code officials.

Taking the approach of the popular DIY series, This Old House, developers have created videos that are as entertaining as they are informative. Online viewers join IREC Training Specialist Joe Sarubbi to follow seasoned building and electrical inspectors through the finer points of five different solar inspections. Each video highlights a different type of system and technology, including:

  • Microinverter systems
  • DC-DC converter systems
  • Tesla Powerwall energy storage systems
  • Ground mounted AC-coupled systems with energy storage
  • Commercial carport systems

Presented in an engaging, easy-to-watch video format, the training can be completed in just a handful of lunch-hour sessions and is aimed at new and experienced residential inspectors, as well as residential PV installers.

The videos incorporate the 2017 National Electrical Code and the most current international building, residential and fire codes. “The new PV Inspector Online Training course for code officials brings together a remarkable group of experienced PV system inspectors from across the country to present a wide variety of PV system types and technologies,” said Rebekah Hren, a member of the NEC’s Code Making Panel 4.

Check out this short video for a look at how the solar training for code officials looks and feels. The training is available online free of charge for a limited time.

IREC developed the training in conjunction with the International Association of Electrical Inspectors You are leaving WAPA.gov. and International Code Council You are leaving WAPA.gov. with funding from the U.S. Department of Energy. Continuing Education Units are available from the IAEI, ICC and the North American Board of Certified Energy Practitioners. You are leaving WAPA.gov.

Source: Interstate Renewable Energy Council, 5/16/18

Community Solar gets enthusiastic reception in Fremont, Neb.

Sometimes, you just don’t know what people want until you ask them, as the municipal utilities board of directors in Fremont, Nebraska, You are leaving WAPA.gov. learned when they set out to diversify their municipal power portfolio.

The residents of Fremont, Nebraska, enthusiastically embraced community solar. The 1.5-megawatt solar farm was fully subscribed in only seven weeks.

The 1.5-megawatt Fremont Community Solar Farm unleashed a pent-up demand for renewable energy options, selling out subscriptions in just seven weeks. (Photo by Fremont Utilities)

City Administrator Brian Newton recalled that one of his first projects after joining the city staff three years ago was to work with the board of directors on a strategic plan for their power supply. At the time, the city of around 27,000 was powered mainly by coal and natural gas. “The board decided it would be a good idea to investigate adding other resources,” said Newton.

Consulting experts, customers
His initial reaction was that the customers would not be interested in solar energy. After all, Fremont residents enjoy a low residential rate of just 8 cents per kWh, and no one had installed a privately owned solar system.

So Newton took the prudent step of consulting experts before rushing headlong into a project. After scoring a Department of Energy Technical Assistance Grant, the city teamed up with the National Renewable Energy Laboratory and the Smart Electric Power Alliance You are leaving WAPA.gov. to gauge customer interest in renewables and to explore financing options.

That was a smart move, because SEPA research has shown that a successful community solar project starts with knowing your audience. The survey SEPA conducted was an eye-opener for Newton. “More than 70 percent said they were interested in solar power, and some said they’d pay $10 more per month for it, which I doubted,” he said.

Just to make sure the survey results were on track, Newton held numerous public meetings to explain community solar to customers and get feedback from them. More than 500 people signed up to receive information about solar energy and many were adamant about joining the community affair. They not only wanted the solar power to be sold in Fremont, they also wanted it built by local developers, financed by local money and under community control.

Designed to sell
To make participation easy, Fremont put together a unique package of options. Customers can choose between purchasing panels, buying one or more solar energy shares and subscribing to a combination of panels and shares.

Solar subscriptions can cover up to 80 percent of residential customers’ annual kilowatt-hour consumption and 50 percent for commercial customers. One panel generates an average of 43 kWh monthly, while one solar energy share represents 150 kWh monthly. Customers who purchase panels are able to take advantage of the Federal Solar Investment Tax Credit, making participation even more attractive.

If the utility board of directors had any remaining doubts about customers’ interest in solar, those were laid to rest when the 1.5-megawatt solar farm sold out in seven weeks. Fremont promoted the project with customer meetings, emails and bill stuffers, the usual avenues for getting the word out. Newton noted that the 1.2-MW second phase of the solar farm is selling out by word of mouth alone.

Newton may have been surprised by customers’ eagerness to invest in renewables, but he told SEPA the rural community’s latent environmentalism shouldn’t be surprising. The community has always been firmly rooted to the land because agriculture is central to the local economy, he said. “Damaging the land or air isn’t an abstract idea. Fremonters can see the impact of environmental degradation on their livelihoods.”

Or, as one resident observed, Fremont’s support for solar power is not a surprise, as much as it is the natural progression of a long history of civic involvement in environmental stewardship.

Phase out residential lighting programs? Not so fast…

LED, or light-emitting diode, bulbs have become a major market player in recent years and can be expected to grow when new lighting efficiency standards come into effect in 2020. Utilities might be tempted to think that there is little of this “low-hanging fruit” left for residential efficiency programs to pluck. Before utility program planners sunset this portfolio mainstay, however, the American Council for an Energy-Efficient Economy You are leaving WAPA.gov. suggests you take a closer look at the particulars of your program.

Well-designed lighting programs will likely continue to garner savings for utilities through 2019, but the outlook gets more complicated on January 1, 2020. For one thing, regional differences play a role in how lighting programs perform after the standards are raised. LED adoption varies from state to state and even within states. In most of WAPA’s territory, LEDs are between 20 and 30 percent of the light bulbs purchased. That leaves plenty of room for an effective program to grow the market.

Sales data indicates that lighting programs and retail support are strong drivers of LED adoption. Also, preliminary evidence from New York and Massachusetts indicate that LED adoption drops when programs end. So utilities would be premature to start scaling back their lighting programs—certainly where LED sales are low, and even in states like California where LEDs represent 40 percent of light bulb sales.

ACEEE identifies several program options that could continue the progress in lighting efficiency, even after the standards go into effect.

  • Underserved markets: Lighting programs can find additional savings by targeting rural, elderly and low-income market segments that have been slower to adopt LEDs.
  • Specialty lamps: LED versions of popular specialty lamp styles are now available, including decorative, candelabra, globe and reflector lamps. Yet these styles sell significantly fewer units than general-purpose LED lamps, suggesting that consumers need more education about the products.
  • High quality lamps: Programs should continue to promote high-performing ENERGY STAR-branded products, rather than “value” LED lamps that do not meet ENERGY STAR standards.
  • Controls: Dimming and occupancy controls offer significant additional savings opportunities. Lighting programs can help connect consumers to quality control solutions that are easy to install and operate.

While residential lighting efficiency programs still have plenty of savings left to tap, the technology’s increasing efficiency will eventually end their usefulness. It is not too soon for utilities to start considering the next opportunities for helping customers control and reduce their energy use.

Source: American Council for an Energy Efficient Economy, 4/9/18

Study shows net-zero future at cost parity with coal

Platte River Power Authority You are leaving WAPA.gov. recently got the results of a study it commissioned on the relative costs of transitioning to net-zero carbon generation by 2030. The study found that the northern Colorado generation and transmission utility can deliver a net-zero carbon generation portfolio for a cost premium of only 8 percent over the lifetime of the planning horizon (2018–2050).

A story in RMI Outlet, You are leaving WAPA.gov. the Rocky Mountain Institute blog, noted that researchers used relatively conservative assumptions for solar and wind costs, and did not consider demand-side efforts in their calculations. This is significant not only because the estimated difference in cost is so small, but also because it indicates the actual cost premium may be even lower than 8 percent.

Federal hydropower - 90 MW

Federal hydropower – 90 MW
Photo by Platte River Power Authority

History of commitment
PRPA and its municipal utility owners—Estes Park, You are leaving WAPA.gov. Fort Collins, You are leaving WAPA.gov.Longmont You are leaving WAPA.gov. and Loveland You are leaving WAPA.gov.—have a long-standing commitment to clean energy and efficiency. The G&T contracts for approximately 198 megawatts of carbon-free resources from wind, hydropower and solar assets. In fall 2016, PRPA diversified its power production portfolio further by adding 30 MW of solar power at Rawhide Flats Solar.

Rawhide Flats Solar - 30 MW

Rawhide Flats Solar – 30 MW
Photo by Platte River Power Authority

A small mountain town with many second-home owners, Estes Park installed two electric vehicle chargers in 2014 and offers its residents energy-efficiency programs and a renewable energy purchase program. Fort Collins, second-place winner of the Georgetown University Energy Prize, has been a global climate leader for nearly 20 years. It was at Fort Collins’ request that PRPA undertook the net-zero study. Longmont City Council recently adopted a goal to use 100 percent carbon-free electricity by 2030 You are leaving WAPA.gov. and Loveland, an active contributor to the Rocky Mountain Utility Exchange, You are leaving WAPA.gov. provides its customers with an extensive menu of energy-saving programs.

Silver Sage Windpower Project - 12 MW

Silver Sage Windpower Project – 12 MW
Photo by Platte River Power Authority

Calculating total cost
Technology company Siemens performed the study that is unique in showing a low cost for net-zero generation that incorporates transmission costs and balancing charges as well as fuel costs. RMI calls it proof that a net-zero path can achieve cost parity against coal even in coal country and that renewables can compete anywhere.

WAPA celebrates PRPA and its members for their initiative and for showing that public power utilities can lead the way to a low-carbon future.

Source: RMI Outlet, 3/8/18

SEPA issues ‘state of market’ report for electric vehicles

The market for electric vehicles is growing quickly, and utilities can expect to play a central role in minimizing the potential grid impacts of this new load and increasing access to charging infrastructure. With that in mind, the Smart Electric Power Alliance You are leaving WAPA.gov. has surveyed more than 480 utilities about their EV programs to create the industry’s first ever state-of-the-market report for EV programs.

Utilities and Electric Vehicles: Evolving to Unlock Grid Value couldn’t come at a better time, with many industry EV adoption forecasts being revised due to exponential growth. Bloomberg New Energy Finance You are leaving WAPA.gov. predicts that electricity consumption will grow from a few terawatt-hours a year in 2017 to around 118 TWh by 2030. Many utilities may be unprepared for this sudden change in load growth. SEPA has collected information and tools in this report that can help utilities and their partners find a path forward.

The report includes:

  • A first-of-its-kind analytical framework for establishing the maturity of utility EV programs
  • Fourteen types of utility EV programs and activities categorized into early, intermediate and late stages
  • An overview of regulatory decisions regarding utility investments in EV charging infrastructure
  • Recommendations for strategic utility planning on EVs
  • Regulatory analysis and regional trends from over 70 EV-related regulatory dockets

A detailed analysis of the collected data revealed that 75 percent of utilities were in the earliest stages of EV program development. Time is not on the utilities’ side and they must begin now to work with peers and others in the industry to develop a robust EV strategy and identify ways to leverage EVs as a grid asset. Preparation today will equip power providers with the knowledge and technologies they need to unlock value in this new load.

You can download Utilities and Electric Vehicles: Evolving to Unlock Grid Value for free. SEPA members can gain access to the dataset by logging in to the SEPA EStore. The dataset includes the list of utilities included in the analysis, the total number of programs and activities identified by stage for each utility and the identified utility stage.

Electric vehicles potentially offer many benefits—as a distributed energy resource with the ability to modulate charge or even dispatch energy back into the grid—along with many unknowns for utilities. Use this report to introduce yourself to the promise and pitfalls of a load that could change our industry.

Source: Smart Electric Power Alliance, 3/15/18

Utility Dive releases annual survey report

Unpredictability has become the new normal for the power industry as Utility Dive’s fifth annual State of the Electric Utility Survey You are leaving WAPA.gov. makes clear.

Artwork by Utility Dive

The survey of nearly 700 electric utilities in the U.S. and Canada indicated that their commitment to lower-carbon energy resources remains strong even as concern over market and policy uncertainty grows. Other top takeaways include:

  • Expectations of load growth – Since 2008, utilities have faced stagnant or declining demand for electricity, but this year, utility professionals see that trend changing.
  • Uncertainty, particularly in regard to federal regulation – Nearly 40 percent of utility professionals named uncertainty as their top concern about changing their power mix — almost twice the level of concern expressed about integrating distributed energy resources (DER) with utility systems.
  • Cybersecurity fears – For the second year running, participants placed cybersecurity at the top of their list of concerns, with about 81 percent rating it either important or very important.
  • Justifying emerging grid investments – Utilities see the need to invest in grid intelligence to manage electric vehicle (EV) charging infrastructure, DER, storage, analytics and cybersecurity. However, demonstrating the return on such high-tech investments to regulators, ratepayers and even their own organizations is complicated.
  • Traditional cost-of-service regulation falling from favor – Utilities are ready to adapt their business models to take advantage of new technologies and market opportu­nities. Around 80 percent indicated they either have or want a regulatory proceeding in their state focused on reforming utility business and revenue models.

Perhaps the most positive message to be taken from the results of the 2018 survey is how many utilities are willing to rethink the traditional business model in the face of changes in the industry. The report has a laundry list of other important insights on rate design, DER ownership, the increasing popularity of EVs and more. Whether you participated in the survey this year or not, it is sure to make for interesting reading.

You can download the 86-page survey report for free, or read a rundown of the top results with graphs. Utility Dive also hosted a sneak-peak webinar on the results at the end of January, which you can listen to for free.

Source: Utility Dive, 2/27/18

Kayenta Solar Farm to expand; partners consider more renewables projects

Nothing says success like expansion, and the landmark agreement between the Navajo Tribal Utility Authority You are leaving WAPA.gov. (NTUA) and Salt River Project You are leaving WAPA.gov. (SRP) to expand the Kayenta Solar I facility has success written all over it.

Salt River Project purchased two years' worth of clean energy and environmental attributes from the 27.3- megawatt Kayenta I Solar Project, helping to fund its construction. When the Kayenta II expansion is complete, SRP will extend the original contract by one year.

Salt River Project purchased two years’ worth of clean energy and environmental attributes from the 27.3- megawatt Kayenta I Solar Project, helping to fund its construction. When the Kayenta II expansion is complete, SRP will extend the original contract by one year. (Photo by Navajo Tribal Utility Authority)

Only the beginning
The announcement of the expansion coincided with signing a long-term solar contract for the sale of firmed energy and environmental attributes from Kayenta II, as the project is called. SRP and NTUA also signed a memorandum of understanding (MOU) in which they committed to pursuing future renewable energy projects.

“The Kayenta I Solar Project has become the Navajo Nation’s showcase renewable energy project to demonstrate that the Navajo Nation is ready for large-scale renewable energy development and operation,” said NTUA General Manager Walter Haase.

SRP General Manager and CEO Mark Bonsall said that the agreement is an essential platform for the utility and the tribe to develop future projects. “The renewable energy credits from this project will also help SRP expand its renewable portfolio to further reduce carbon emissions,” noted Bonsall.

More renewables to come
Under the MOU, SRP will provide technical support in developing interconnection facilities for large-scale renewable development within the Navajo Nation. The utility will also provide procurement and financing expertise related to the development and ownership of such projects. The agreement targets the development of at least 500 megawatts (MW) of renewable energy projects over the next five to 10 years within the Navajo Nation.

During the development of Kayenta I, SRP signed a two-year energy and environmental attribute contract. Once Kayenta II reaches commercial operation, the utility will add another year to the Kayenta I contract with options for further extensions resulting from the commitment to jointly pursue additional projects.

So far, development has focused on solar and wind resources, but the tribe is open to exploring other types of renewable generation. “We believe it is our responsibility to take the lead role in the development of renewable energy projects to promote economic development within the Navajo Nation,” said NTUA Spokeswoman Deenise Becenti.

Developing workforce, economy
NTUA anticipates that Kayenta II will further prove the tribe’s ability to develop renewable energy projects and build on the economic gains of the first solar facility.

Navajo workers received more than 4,700 hours of specialized training in solar-utility construction for the Kayenta I Solar Project. Construction of the next phase will likely employ even more Navajo workers.

Navajo workers received more than 4,700 hours of specialized training in solar-utility construction for the Kayenta I Solar Project. Construction of the next phase will likely employ even more Navajo workers. (Photo by Navajo Tribal Utility)

The 27.3-MW Kayenta Solar Project generates electricity to power an estimated 18,000 homes served by NTUA. At the height of construction, around 278 people worked on the project, 236 of whom were of Navajo descent.

The Navajo workforce was paid $5.2 million and received over 4,700 hours of specialized training in solar-utility construction for Kayenta I. The construction of Kayenta II will likely employ even more Navajo workers and is expected to produce similar salaries for the employees.

Tribe members have taken the skills they learned on the first Kayenta facility to other projects, added Becenti. “That trained workforce was able to find construction jobs at a solar farm in nearby Gallup, New Mexico,” she said.

The construction also generated $3,017,055 in taxes paid to the Navajo Nation. Overall, it is estimated that $15.6 million in economic activity occurred within the surrounding communities during construction.

Creating bright energy future
The Navajo Nation considers Kayenta II to be the next step toward the tribe producing energy for its own use. The facility is expected to begin commercial operation in the May 2019.

There are no current plans to add storage to the project, but the technology is on the tribe’s radar for future opportunities. This is another area where the Navajo Nation may be able to leverage its partner’s expertise. Last year, SRP signed two power purchase agreements with NextEra Energy Resources, one for a 20-MW solar array with energy storage and a separate agreement for a 10-MW grid-scale battery. The utility also plans to work with NextEra to test the economic viability of using storage to integrate intermittent renewable resources on its grid.

The Navajo Nation appreciates SRP’s willingness to continue to work alongside NTUA, Haase stated. He looks forward to Kayenta II generating not only clean electricity, but more jobs and promising economic activity in the region, as well. “This partnership is all about progress,” said Haase.

Source: SRP, 1/26/18