Solar Implementation at Pier 69
Item No: 6d_Supp
Meeting Date: December 12, 2017
Port Century Agenda Goals
• Be the greenest, and most energy efficient port in North
America
– Meet all increased energy needs through conservation and
renewable sources.
• Economic and Social
– Promote small business growth and workforce
development
2
Project aligns directly with Century Agenda goals
Project Summary
Location, building structure, utility service and Incentivization influence project siting
3
Scale
Total
Estimated
Costs
Department of
Commerce
Grant
Net Cost
to
the Port
Electricity
Produced
kWh/Yr.
Electricity
Value/yr.
Annual
MtCO2
reduced
100KW $515,000 $182,500 $332,500 100,000 $11,000 1.5 Mt
Benefits
• Reduces 49.5 MtCO2 over project life
• Reduces operating costs at P69
• Positive public perception of promoting renewable energy
technologies
• Supports 7 clean tech jobs by using in-state sourced solar
panels and local installation contractors
P69 is an economically and environmental feasible renewable energy project
4
Cost Estimates and Financial
Analysis
5
Financial Details
Total
Project Cost
$
515,000
Expected
Grant
Reimbursement
(
50% of construction costs)
(
$182,500)
Total
Cost to the Port
$
332,500
Project life
33 years
Payback period
24
to 30 years ( @3% to 5% growth rates in grid-
based electricity cost)
NOI
after depreciation
$
2,000 to $11,000 annually
IRR
3.4
% to 4.7%
NPV (@7.6
% discount rate)
($149,000) to ($203,000)
Contracting Method and Schedule
• Building Engineering Systems (BES) Contract
– Based on lessons learned from pilot project at FT
– Port will provide performance specs and contractor will
design and construct
– Opportunities for efficiency, quality, and innovation
• Schedule
– Q1/2018: Advertise, award, and execute BES contract
– Q2-Q3/2018: Design and construction
– Q4/2018: Project closeout
Implementation Details
6
Questions
7
