Item No: 6d_Supp
Meeting Date: December 12, 2017

Solar Implementation at Pier 69

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

Project aligns directly with Century Agenda goals
2

Project Summary
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

Location, building structure, utility service and Incentivization influence project siting
3

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
Total Project Cost

$515,000

Expected Grant Reimbursement ($182,500)
(50% of construction costs)
Total Cost to the Port

$332,500

Project life

33 years

Payback period

24 to 30 years ( @3% to 5% growth rates in gridbased 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)

Financial Details
5

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