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Mohave Sun Alternative Energy HCNY Presentation
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MOHAVE SUN POWERAPRIL 1, 2009
Presented by: Mitchell Dong
SOLAR GRAND PLAN
Visionary plan for solar power to replace coal and gas
Solar can provide 100% of US electricity
Solar can drive an all electric car fleet
Cut carbon emissions by 80% by 2050
Ken Zweibel of GWU author of Scientific American, Jan
2008 article
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ENERGY FROM THE SUN
Data source: Wikipedia
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DESERTS OF THE WORLD
Data source: www.geographyalltheway.com
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EUROPE AND SAHARA DESERT
Data source: American Geological Institute
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SOLAR RADIATION IN USA
Data source: NREL
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DESERT ENERGY
4% of the US deserts could meet US electricity needs
Desert Area Served
Sq mi Solar collectors
Desert Area % of Desert
GWh/yr
US SW US 20,000 500,000 4% 3,800,000
Sahara Europe 20,000 3,500,000 0.50% 3,300,000
Gobi China 15,000 500,000 3% 2,500,000
Kalahari Africa 3,000 360,000 1% 480,000
Australian Australia 1,000 600,000 0.30% 220,000
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OPERATING POWER PLANTS IN NORTH AMERICA
Data Source: Platts
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US ELECTRIC TRANSMISSION GRID9
NATURAL GAS PIPLINE NETWORK10
NATIONAL HIGHWAY SYSTEM
Data Source: Wikipedia
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EXISTING AND FUTURE INFRASTRUCTURE
160,000 miles high voltage electric transmission lines300,000 miles of gas pipelines50,000 miles in US highway systemEstimated 50,000 miles of new transmission lines would be needed for solar from SW to all of US
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COST OF IMPLEMENTATION IN US
Cents/kwh Annual cost Capital cost $/watt
15 cents $600 billion $6 trillion $9
10 cents $400 billion $4 trillion $6
5 cents $200 billion $2 trillion $3
Assumptions:
3,800,000 gwh / yr annual US consumption
10% cost of capital
15% conversion efficiency from sun to electricity
Assumes cost of parabolic trough solar generation
Assumes cost of molten salt storage
Includes 50,000 miles of DC transmission lines
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COST BENEFITS
New electric grid$365 billion / yr on oil expenditures (2/3 imported)= $250 billion / yr on oil imports$50 billion / yr on coal $100 billion / yr on natural gas
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CUMULATIVE ENERGY SUPPLY
Investment of $26 trillion, or over $1 trillion/year, is needed, but the credit squeeze could delay spending, potentially setting up a supply-crunch once the economy recovers
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SUM SOLAR GRAND PLAN
Bold but feasibleIn the past 50 years, we have built
300 coal fired plants300 gas fired plants100 nuclear plants100 large hydro
We can build 3000 new solar plantsNow, an example of one such proposed plant
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EXAMPLE: HUALAPAI VALLEY SOLAR PROJECT
Largest planned solar project in the world 340 MW with storage or equivalent of 500 MW without storageObama’s stimulus package could finance the entire $2.1 billion projectProven technology: Parabolic TroughExperienced developer with track record
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TECHNOLOGY OF SOLAR TROUGHS
Most mature of utility-scale technologies
Longest track record (since 1984 in USA)
Projects – operational
Solar Energy Generating Systems (354 MW, CA, 1984-90)Nevada Solar One (64 MW, 2007)
Projects – under construction
Andasol 1-7 (50 MW each, Spain, first one online 2009)Solnova 1-5 (50 MW each, Spain)Extresol 1-3 (50 MW each, Spain)10 other projects under construction in Spain, total 500 MW
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PARABOLIC TROUGH – CLOSE UP
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PARABOLIC TROUGH – PANORAMA
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PARABOLIC TROUGH – AERIAL VIEW
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PARABOLIC TROUGH
Mirror Washing - Deluge Method
Molten Salt Tanks Steam Turbine Assembling
Parabolic Trough with Drive Pylon
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PARABOLIC TROUGH – SCHEMATIC
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REGIONAL MAP OF SOUTHWEST US24
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HUALAPAI VALLEY SOLAR PROJECT
HUALAPAI VALLEY SITE26
TRANSMISSION LINES AT SITE27
SITE- HUALAPAI VALLEY28
Proposed Transmission and Distribution Lines
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PLANT LAYOUT
CAPEX
Total $2.1 billion, including the following:
$1 billion in the solar collector field of mirrors, tubes, pipes
$200 m in molten salt storage
$120 m in heat transfer fluid
$200 m in steam turbine generator and power block
$75 m in balance of plant
$ balance in EPC fees, contingency, land, interest during
construction, owners costs, etc
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EPC CONTRACT – POTENTIAL TERMS
Engineering, Procurement and Construction contract
Key terms: performance, price & schedule
Guarantees performance of entire plant
Guarantees the completion date
Fixed price, with possible commodity escalators
Contingency for commodity price increases
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POTENTIAL TEAM – CONSTRUCTION
Possible constructors include:
Abengoa (Spain) Acciona (Spain) ACS / Cobra Group (Spain)MAN Solar Millennium (Germany)Black and Veatch (USA) Lauren Engineers and Constructors (USA)Fluor (USA) SNC Lavalin (USA)URS Washington Division (USA)
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ENVIRONMENTAL PERMITS
Permits RequiredFederal NEPA process / EISArizona Corp Commission licenseAir PermitAquifer Protection PermitMohave County Zone change and special use permit
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POWER PURCHASE AGREEMENT (PPA) –POTENTIAL TERMS
Take-or-pay contract
Production of peak power – most desirable
Thermal storage of 6-8 hours
As available
95% capacity factor for summer peak
25-30 year term
Power price to be determined in RFP competitive process
Meets the utility’s renewable energy requirements
Renewable Energy Credits (RECs) go to utilityCONFIDENTIAL
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POTENTIAL TEAM – POWER PURCHASERS
14 possible customersAPS or Arizona Public ServiceLADWP or LA Dept Water & Power PGE or Pacific Gas & Electric Nevada Power (formerly Sierra Pacific Power)SCE or Southern California Edison SDGE or San Diego Gas & Electric SRP or Salt River ProjectTEP or Tucson Electric Power (Unisource)Southern California Public Power Agency (SCPPA)Northern California Public Power AuthoritySacramento Municipal Utility District (SMUD)Western Area Power Administration (WAPA ) Bonneville Power Administration (BPA)Large industrial users or energy trading companies
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FINANCING - EQUITY
30% solar ITC
Refundable as a cash grant by Treasury
Majority of equity for project
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FINANCING - DEBT
DOE loan guarantee program for renewables$10 billion authorized under 2005 Energy Policy Act$60 billion added by Obama/CongressUp to 80% of project costFederal Financing Bank 30 years at 3.5%Project Applied on Feb 26, 2009
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DEVELOPMENT BUDGET – PER SITE
$ 1,500,000 – Land options (24 months)
$ 1,500,000 – Engineering, design (18 months)
$ 1,000,000 – Environmental and permitting (18 months)
$ 750,000 – PPA deposit, paid to the utility (12 months)
$ 600,000 – Site prep, mapping, test and monitoring (6 months)
$ 300,000 – Project management (24 months)
$ 250,000 – Electrical studies (6 months)
$ 250,000 – Legal (12 months)
$ 6,150,000 per site (slightly less for 2nd and 3rd sites)
Note: This does not include an estimated $ 15 million for PPA security deposit. This deposit, paid to the utility, can vary depending on the utility and negotiated PPA terms.
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PROJECT SCHEDULE
Development Period: 2009-10 (1.5-2 years)Design and engineer facility - 3Q 2009Secure all environmental approvals and permits - 2Q 2010Negotiate PPA - 1Q 2010Negotiate EPC - 2Q 2010
Financing Period: 2010 (0.5-1 year)Organize lenders and equity investors - 2Q 2010
Construction Period: 2010-13 (2.5-3 years)Install foundations and framingAssembly and installation of solar collectorsInstall steam cycle and power block
Operations period 25 years, starting in 2013
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CLOSING
Largest planned solar plant in the world
340 mw solar trough project in the Mohave by 2013
$2 billion financing from stimulus money
Solar industry can build 100 such plants in next 5-10 yrs
Must bring cost down by 75%
3000 solar plants in next 10-20 yrs
10,000 solar plants globally in the next 20-40 yrs
Small fraction of the Sahara, Gobi, Kalahari and Mohave deserts
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CONTACT INFORMATION
Mitchell DongMohave Sun Power LLC________________________________
85 Hamilton StreetCambridge, MA 02139
Office: +1 617.864.3770Fax: +1 617.864.2701
[email protected] address: mldong141
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