HomeMy WebLinkAboutI. Project Management
TIME APPROXIMATE
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: 18AUG 2010
Division: Administration
Bulk Item: Yes
No --.lL
Department: Proiect Management
Staff Contact PersonlPhone #: Wilson/Barnett x8797/4416
AGENDA ITEM WORDING:
Presentation and discussion of a proposed demonstration project to supply windmill generated
electricity for the Medical Examiner building on Crawl Key. Approval, in concept, for Project
Management and County Attorney staffs to develop a project plan for BOCC approval.
ITEM BACKGROUND:
The Medical Examiner building electric bill is approximately $61,000/yr (525 MWHR). Inerjy, Inc.
has proposed installation of a novel windmill technology using a vertical turbine as a demonstration of
the concept. Inerjy will install and guarantee the performance. The initial proposal reflects a minor
($1-2,000/year savings for the County. Inerjy has received an informal commitment from FKEC to
purchase the excess power generated. The project depends in part of Federal grant/renewable energy
credits.
PREVIOUS RELEVANT BOCC ACTION: NONE
CONTRACT~GREEMENTCHANGES: N~
STAFF RECOMMENDATIONS: Authorize staff to further refine the proposal.
TOTAL COST: NONE
INDIRECT COST: NONE
BUDGETED: Yes _No
DIFFERENTIAL OF LOCAL PREFERENCE: N/ A
COST TO COUNTY: NONE
SOURCE OF FUNDS: N/ A
REVENUE PRODUCING: Yes
No X
AMOUNTPERMONTH-L Year-1L.
APPROVED BY: County Arty _ OMB/Purchasing _ Risk Management_
DOCUMENTATION:
Included X
Not Required_
DISPOSITION:
AGENDA ITEM #
Revised 7/09
Wind Turbine Demonstration Proposal-
Monroe County Medical Examiner's Office
Purpose
The purpose of this document is to outline the aspects of installing an Inerjy 250kW wind turbine at the
Medical Examiners office, including financial aspects, environmental considerations, roles and
responsibilities. Stabilizing long term energy costs for the Medical Examiners office would be the
primary benefit sought by demonstration of the technology, with environmental benefits being an
added bonus. Should this proposal be viewed favorably a future lease agreement would be required.
Project Goals
1. To demonstrate a distributed wind power solution is suitable for the Florida Keys, without
capital cost to Monroe County
2. To achieve an immediate net energy cost savings for Monroe County
3. To take advantage of renewable energy incentives where practical
4. To incorporate a sufficient long-term lease agreement that allows Inerjy to finance a part of the
overall cost of the project
5. To protect the county through that agreement from default by Inerjy
Background
Wind power has become the fuel for the new Century. New wind power installations in the US have
eclipsed new conventional power plants for the first time in 2008, and are predicted to continue to lead
new electric generation well into the future. The primary drivers for this change are threefold:
D National Security-dependence on foreign energy sources has proven undesirable
D Economics-the fuel expense of conventional power plants has reached a level that burdens our
society, and predictions are that the problem will continue to escalate
D Climate Change-Wind power has no carbon emissions and, along with solar, share an
environmentally friendly and sustainable footprint
Florida has not participated in this economic boom for several reasons, including:
D High population densities in coastal areas where there is a good wind resource prohibit utility scale
wind power development
D Lack of commercial technologies able to withstand hurricane-force winds
D Government incentives favor other markets
Inerjy is changing this situation by developing a 'facility-class' (a.k.a. 'mid-scale' NREL 2008) turbine to
provide meaningful benefit in Florida conditions. The approach hinges around trading theoretical
performance for a quiet, aesthetic, low-impact design. An advanced control system and incorporation of
established manufacturing methods combine to realize a worthy value proposition. It is only with this
combination that the market transformation of bringing wind power to Florida is achieved.
Financial Considerations
One primary goal of the project is to achieve the installation of the project in such a manner that the
overall energy costs to the county are lower than the current electric bill. In order to accomplish this it
is proposed the turbine be located at the medical examiner's office but owned and operated by Inerjy.
Legally this agreement vehicle should be a lease as Inerjy is not a regulated utility and can't sell electrical
power. The right to sell electricity is the exclusive right of FKEC. The county would lease the turbine
from Inerjy at an initial fixed rate of $6,750/mo. Adjustments could be pre-established based on EIA
energy cost predictions or other alternative mutually agreed on methods.
The table below outlines the financial aspects of the project:
Yearly Billing
Summary
Without Turbine With Turbine
Energy Charge $ 12,024.40 0
Customer Charge $ 624.00 $ 624.00
Power Cost $ 42,056.41 0
Equity Charge $ 4,390.05 0
Demand Charge $ 1,662.05 $ 1,662.05
Renewable Energy
Credits $ - $ (3,375.00)
Turbine Lease Payment $ - $ 81,000.00
Power Revenue $ - $ (18,750.00)
Gross Recpt Tax $ 1,557.20 $ 58.59
Yearly Total $ 62,314.11 $ 61,219.64
Assumptions:
1. Turbine will produce 675 mWh annually (conservatively estimated).
2. Medical Examiners office actual electric bill data was used for without Turbine numbers from
February 2009 - January 2010.
3. FKEC will purchase excess power of 150 mWh at $125/mWh annually.
4. Renewable Energy Credits (REe) valued @ $5/mWh.
It is anticipated that stakeholders will have to be educated about the performance power curve and how
annual output is estimated. Guarantees will be included surrounding the turbine's power curve within
some tolerance level along with a maximum downtime.
In order to enhance the financial aspects of the demonstration site, financial incentives could be made
available by different government offices. Both parties agree to provide information to these offices at
different stages of the development to achieve a successful outcome should these incentives be deemed
applicable to the project.
Here is a partial listing of the possible incentives:
D Section 1603 Treasury grant in lieu of investment tax credit - This incentive is currently in the
financial plan for the site and critical to success.
D DOE/Florida State Energy Plan (SEP) clean energy grants
o DOE/Florida Energy Efficiency & Conservation Block Grant (EECBG) competitive grants
D Clean Renewable Energy Bonds (CREBs)
D Renewable Energy Production Incentive (REPI)
o USDA Section 9007-2008 farm bill incentive programs
D Renewable Energy Credits (RECs)
o Carbon Cap & Trade (future legislation)
Not all of the aforementioned incentives can be combined. Should any of these incentives come to
fruition a corresponding reduction in the monthly lease payment would result.
Environmental considerations
Clean Power - The turbine installation will directly benefit the environment by reducing carbon
emissions. The turbine will reduce the counties carbon footprint by 500 tons annually.
Aesthetics - These are a matter of personal preference and make objective judgment difficult. Our goal
with the vertical nature of the turbine was to look less industrial and blend in to other common
elements. The turbine has been shown to hundred of politicians, community leaders, engineers, and
others resulting in very positive feedback regarding the design. The true measure will of course be
public feedback about the installation.
Wildlife Impact - Wind turbines have been known to adversely impact two wildlife species, birds and
bats. Traditional turbines have very long blades with high tip velocities in excess of 200 mph. Thus, they
are not easy for birds to miss when crossing in its path. The Inerjy design will have tip velocities in the
50 - 60 mph range. This lower velocity should be much more visible to a bird and more easily avoided.
It is highly unlikely our EcoVert design will cause any bird strikes whatsoever, but that remains an item
to be proven out in operation.
Shadow Flicker - Shadow flicker occurs when the turbine blades cast their shadow during operation.
The shadow will move with the blade in motion. It may cause an annoyance to any person that spends a
significant amount of time within this moving shadow.
Hurricanes - Wind loading in a severe windstorm would be a potential cause of tower collapse. We are
addressing this issue with technology designed to withstand category 4 hurricanes. The reason the
design can withstand this is the vertical blades can be feathered such that the wind actually blows the
rotor into the least resistive direction. This floating rotor concept behaves much the same way as an
airplane wing flying into the wind.
Tower height - The EcoVert hub height is 197 feet. The top of the blades it is 246 feet. As a society we
need to carefully consider the implications of towers being used to generate power versus our current
fossil fuel based system. Figure 1 shows the skyline impact of the tower relative to other structures.
Visual Aesthetics
Physical height and size make visual impact one of the most important factors when siting a wind
turbine. Wind turbines must be both large and tall to harness meaningful energy from nature. In
general the energy captured is directly proportional to area of the wind acting on the turbine blades, the
wind velocity, and the efficiency of the machine.
A photo simulation of the turbine is attached and meant to present a visual representation of the
turbine at the site. As well, a landscape comparison of other items in our environment is at the end of
the proposal.
Responsibilities
Responsibilities of Monroe County
o Provide electricity consumption and rate information appropriate for the scope of the project
D Provide reasonable correspondence needed for grant applications and financing
o Execute an equipment lease if a win-win situation is created
D Provide site information for the turbine installation and relevant site details
D Work to permit the site with the appropriate governing bodies.
Responsibilities of Inerjy
D Provide company information, turbine specifications, or any other details reasonable to facilitate
project realization.
D Install, own, operate, and maintain the turbine.
D Write grant proposals and fill out grant or other incentive applications
o Provide project finance proposals
D Provide pre-permit documentation and participation in public review
D Participate in presenting solution to stakeholders
D Evaluate contracts with intent to execute if a win-win situation is created
Mutuali\greement
It is mutually understood and agreed by and between the parties that:
1. All activities shall be conducted lawfully under the laws of the State of
Florida.
2. Each party shall be responsible for their own expenses in relation to project realization.
3. If confidentiality is needed for disclosure of information then a separate confidentiality agreement
will be required to protect such disclosure.
Inerjy
1800 NW 69th Avenue
Plantation FL 33313
Phone +1-954-791-1500
Fax +1-954-791-1501
www.lneriv.com
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