2020 RPS & Storage Resource
RFO - Project Approvals
PRESENTED BY: Howard Chang
DATE: January 19, 2022
Goals & Objectives
• Secure a portfolio of contracts
to provide EBCE customers
with affordable renewable
and clean energy sources
• Meet a significant percent of
SB350 long-term contracting
requirements, equal to 65% of
RPS obligations
• Meet IRP Near- and Mid-Term
Resource Adequacy Reliability
Procurement mandates
• Create new renewable energy
projects to deliver PCC1 RECs
• Contract low-cost energy
hedges to complement
existing portfolio
Actions
• Issued a broad, open,
competitive solicitation to
ensure wide array of
opportunities considered
• Evaluated exhaustive
combinations of projects to
achieve desired volume
targets, while optimizing
project risk, location, workforce
development, economics, and
other characteristics
• Encouraged RFO participants
to be creative and provide
proposal variations on
individual projects and include
battery storage
2 Project Characteristics
Facilities:
• Location: Projects may be within or
outside of California. All energy must be
deliverable to CAISO.
• Construction Status: Energy and related
products may come from new or
existing resources.
Capacity:
• Minimum Contract Capacity: 10 MW
• Maximum Contract Capacity: 200 MW
Delivery Date:
• Energy and RPS attribute delivery must
be within calendar years 2021, 2022,
2023, or 2024, with a preference
for projects that begin delivery earlier
within this window.
Contract Duration:
• 5-20 year durations
Technology:
• Renewables, Storage, and Large Hydro
Solicitation Overview
3 Participation
• Robust project offering with over 70 unique project sites and over 400 contract variations
• All 6 products that were solicited were offered
• Offers included solar, wind, geothermal, hydro, and storage • Projects based in 6 different states, predominantly CA – *Only 2 projects in EBCE service territory. 1 project is speculative without site control, the other other project in Tracy is shortlisted.
Evaluation Process
• Evaluation Rubric scored 3 areas:
– Counterparty Execution, Offer Competitiveness, and Project Development Status – Multiple items under each area
• Two reviewers were assigned to each project.
• Staff reviewed all submitted information and provided scores for all categories except for Term Sheet Markups and NPV.
– Each item has 10 point max. at its own weighting.
– Term Sheet Markups were scored by one assigned reviewer. – NPV scores were directly incorporated into overall project score with a weighting of 45%. • The Net Present Value was calculated based on simulations on 3 different forward curves • For each forward curve we took a weighted average of the P5 (50%), P50 (25%), and P95 (25%) and then took a simple average across the 3 curves
• We normalized this number on a $/MW basis and the projects were then assigned a 0-10 score based on the NPV distribution
• Scoring and rubric were consistent with the selection process for the 2018 California Renewables RFP.
4 Projects Proposed for Execution
Seeking approval for one contract: one fixed price, shaped energy RPS Power Purchase Agreement (PPA) submitted into EBCE’s 2020 Renewable Energy & Storage Resource RFO
• Geothermal PPA, facility sited in Nevada. 15-year term with option to extend to 20 years. Structured as a fixed price energy agreement. Developed by Fervo Energy.
Expected to be operational in May, 2026.
– Project will meet CPUC mandate for “long lead time resources”, as required under CPUC D.21-06-035
5 Fervo Project Details
• Selected via the 2020 Renewable Energy & Storage RFO
• 40 MW geothermal project based in Churchill County, Nevada – Total project size is anticipated to be 115 MW
• 15-year contract; EBCE has option but not obligation to extend to 20 years • Expected Commercial Operation Date is May 1, 2026
• Project has an executed facility study and system interconnection agreements and site control.
• Fervo will make a financial or time contribution to EBCE’s Community Investment fund as part of this contract.
• Committed toward utilizing union labor where possible and prevailing wages in Nevada. • The contracting entity under Fervo is FEC Nevada I, LLC. 6 Fervo Company Overview
• Fervo Energy is a developer of geothermal energy resources. • Founded in 2017, Fervo’s team is comprised of reservoir engineers, geophysicists, data scientist, and renewable power developers.
• Fervo has combined advanced drilling techniques, fiber-optic sensing, and cloud-based analytics to unlock new geothermal resources.
• FEC Nevada I represents the first resource Fervo will develop and operationalize, however the Fervo team has developed over 1 GW of generation projects including the Hudson Ranch Geothermal Plant, completed in 2012.
7 RPS Portfolio Summary
8 Contracted RPS Portfolio:
Developer Technology Nameplate
MW Storage MW County
Actual or
Expected
COD
Term Settlement
Clearway Energy Group Solar 112 n/a Kern 12/22/2020 15 DLAP Salka Energy Group Wind 57.5 n/a Alameda 6/30/2021 20 Pnode Pattern Energy Wind 100 n/a
Torrance &
Guadalupe,
NM 12/22/2021 10 Pnode
Idemitsu Solar Solar 55.8 n/a Tulare 2/1/2022 15 DLAP
EDP Renewables North America Solar+Storage 100 30MW/120MWh Fresno 12/31/2022 20 Pnide sPower / AES Solar+Storage 125 80MW/160MWh Kern 12/31/2022 20 Pnode Terra-Gen Solar+Virtual Storage 100 TBD Kern 12/31/2022 15 Pnode Intersect Solar+Storage 125 125MW Riverside 1/1/2024 15 Index Next Steps
• Complete negotiations of Fervo contract; execute by early-February • Assess projects as they hit key milestones and mature further. • Update filing to CPUC on status of 2023-2026 Medi-Term Reliability due August 1, 2022.
• Release next RFO for Long-Term Resources in Q1 2022.
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