1. East Bay Community Energy Local Development Business Plan
Feed-in Tariff (FIT)
Overview Webinar
November 30, 2017
LDBP Project Team:
Special Advisors:
Betony Jones & Gary Calderon

2. Feed-In Tariff (FIT) Program
Recommendations for East Bay Community Energy (EBCE)
Craig Lewis
Executive Director
Clean Coalition
30 November 2017

3. FITs efficiently unleash Wholesale DG
FIT defined: A program that provides an efficient local renewable energy market via a predefined wholesale Power Purchase Agreement between renewable energy facility owners and a Load Serving Entity. FITs are the most cost-effective market mechanism for unleashing the unparalleled potential of the Wholesale Distributed Generation market segment; particularly for commercial-scale renewables.
FIT project
100% of the renewable energy generation is purchased by EBCE at FIT rate
100% of customer energy usage is purchased based on a normal retail rate tariff
Utility customer 3

4. Benefits of a FIT
Unleashes commercial-scale project opportunities: A FIT simplifies the process for all properties to participate in energy generation, which is not true of Net Energy Metering (NEM). FITs address all properties, including those that are non-owner occupied and split-metered. FITs also maximize siting potential by eliminating any on-site load limitations.
Maintains retail customer relationships: 100% of FIT energy is delivered to the Load Serving Entity (LSE) wholesale and the LSE’s retail customers, even those hosting FIT projects, continue paying for 100% of the energy they consume under a normal retail tariff. Importantly, this maintains customer motivations to pursue energy efficiency measures.
Guides the market to build desired Wholesale DG projects: Through design features, including pricing adders, FITs can be tailored to drive deployment of projects that have specific characteristics such as location, size, configuration (on built-environmnets etc) and dispatchability (via renewables+storage pairing). 4

5. Palo Alto FIT maximizes solar and EV charging
The City of Palo Alto, via its FIT program, maximized the solar siting potential of its City-owned parking structures, and via the same projects, quadrupled the number of publicly accessible Level-2 EV charging ports available in the City.
Source: City of Palo Alto 5

6. Auctions have massive failure rates
In California’s RPS solicitation, fewer than 1 in 10 project bids were actually developed, which resulted in massive administrative costs for the program and immense risk/cost for renewable energy project development. 6

7. EBCE FIT project eligibility
Open to all renewable energy technologies that meet California’s Renewables Portfolio Standard (RPS) eligibility requirements
Projects must be sited in the EBCE service territory
Projects can sized up to 3 MW *
*All project size capacity references in this presentation are Alternating Current (AC) rated, unless noted otherwise. 7

8. EBCE FIT program size
A 50 MW FIT will provide roughly 1.29% of EBCE annual electric load
Annual production of 1,600 kWh/kW of FIT capacity is based on solar resource analysis for Alameda County, as we expect PV to be the dominant FIT technology 8

9. EBCE FIT program timing
5 MW quarterly allocations — from Spring 2018 thru Summer 2020
The FIT will bring all 50 MW of capacity online by year-end 2021 before ITC steps down from 22% to 10%
On average, an 18-month lag between capacity being released and coming online 9

10. EBCE FIT program capacity management
If any capacity remains unclaimed within 30 days of the next upcoming allocation, then that excess capacity should be rolled into the next allocation.
For example, if a 5 MW allocation in Spring 2018 receives only 3 MW worth of applications, then the Summer 2018 capacity allocation should total 7 MW — the originally planned 5 MW plus the 2 MW of unclaimed capacity from Spring 2018.
This will ensure that the program remains on track to deliver the desired capacity in line with the program timeline. 10

11. EBCE FIT initial pricing
Initial baseline FIT pricing of 9¢/kWh fixed for 20 years.
This price is expected to support larger, ground-mounted solar PV projects in eastern Alameda County.
Modeling was done using NREL’s System Advisor Model.
The assumptions for this pricing are:
- Pricing is based on site lease cost at 20% of revenue ($43,000/MW/year).
- Observed site lease rates for rooftops have been higher than this 20% revenue-share, adding about 1¢/kWh to the PPA rate. However, the modeled PPA rate is achievable with the CCA’s education and outreach to commercial building owners, in conjunction with pro forma Model Lease Agreements.
- Prevailing union wage adds between $ ¢ to these figures.
There is unlikely to be land available in Oakland to support ground-mounted solar PV projects 1 MW and larger. 11

12. EBCE FIT Market Responsive Pricing (MRP)
Once baseline pricing is set for the initial FIT tranche, MRP governs baseline pricing, which can never exceed a universal maximum of 11¢/kWh.
Market Responsive Pricing for EBCE FIT 12

13. EBCE FIT pricing adders
The concept of pricing adders is simple
An LSE identifies the characteristics it would like to see in its FIT projects and then creates adders to its baseline FIT price to incentivize projects with these characteristics.
The Clean Coalition recommends East Bay Community Energy implement four pricing adders:
Built-environment adder at 20%
Rooftops, parking lots, parking structures, etc.
Small project adder at either 10% or 20%
10% for projects larger than 100 kW and less than or equal to 350 kW.
20% for projects less than or equal to 100 kW.
Community benefit adder at 5%
Tax-exempt and/or disadvantaged zone.
Dispatchability adder at 15 cents/kWh
Eligible for guaranteed daily dispatchable renewable energy at 2-4 hours of nameplate renewable energy FIT project. 13

14. The deadline for submitting comments is:
Thank you
The Draft EBCE LDBP Feed-in Tariff Program Report is posted for public review and comment at:
The deadline for submitting comments is:
December 8, 2017
LDBP Project Team:
Special Advisors:
Betony Jones & Gary Calderon