Track K | Renewable Energy & Sustainable Development
On-Site solar, or behind the meter renewable generation, is not be available to all commercial or corporate customers seeking to offset load with renewable energy. In some markets in the US it is possible for a corporate customer to structure their energy procurement through a virtual power purchase agreement (VPPA) by which they receive energy from a remote solar facility they or a third party owns. This facility can be located anywhere within the regional transmission organization’s (RTO) service area, even in another state. This arrangement is particular useful for customers with many locations, all with small usage profiles. With off-site solar, many corporate customers can achieve their sustainability goals with a dedicated solar array, without constraints for space. Presentation Outline: 1) Advantages of Off-Site Solar a) Optimized for size, production, renewable energy credits (RECs), sales and property tax, land costs, and other location specific value drivers 2) Structuring Considerations a) Financial delivery vs Physical Delivery 3) Valuing Off-Site Solar a) Bus bar energy, basis risk, and effective cost $/kWh 4) Risk Management a) Basis Risk management 5) Financing Considerations a) Land, System costs, Direct vs Third Party Ownership 6) Counterparty Selection a) EPC Selection, Third party energy supplier and market coordinator
Peter has been with AEP since October 2015 and is responsible for project valuation and strategy for our customer-centric, energy asset business – AEP OnSite Partners. Prior to joining AEP, he was an energy consultant with Navigant Consulting conducting policy strategy and engineering analysis for the various energy efficiency and renewable energy programs at the federal and state level. Peter’s experience spans the energy efficiency, solar, fuel cell, and energy storage industries. He began his career with Black and Decker as a product development engineer designing power tool batteries for Dewalt cordless power tools. Peter is a Certified Energy Manager (CEM) and holds a Bachelor of Science degree in Mechanical Engineering and a Masters of Business Administration with a focus in strategy, both from the University of Maryland, College Park.