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Utility Grid-Direct Photovoltaic System:
Exelon-Conergy Renewable Energy Center
– A Compelling Case for Reliable, Fiscally-Sound The 3 MW Exelon-Conergy Solar Energy Center is a stimulating
Renewable Portfolio Standards (RPS) require electric utilities to case study of how innovative partnerships can bring large-scale produce a certain percentage of their power plant capacity or solar photovoltaic projects to utilities and energy providers across generation from renewable sources by a given date. Currently, 28 states have RPS, 5 states have renewable energy goals and more have RPS mandates under consideration.
1) Optimize baseload and peak energy output, 2) Provide fast, affordable project scalability, The concept of a National Portfolio Standard is gaining momentum 4) Help ensure rapid permitting and implementation, in the U.S. Congress. If this happens, there will be a national market 5) Eliminate fuel costs; Slash operating costs, for solar-generated energy with standards that will likely constitute around a 15% RPS by 2025, although in this economic climate, many 7) Meet Renewable Portfolio Standards (RPS) and considerations may change that. President Obama has gone on 8) Earn goodwill with their communities, regulators and investors.
record as favoring a 25% RPS in that same time-frame.
How can a project with so many variables achieve such success? With RPS in more than half of all American states and the prospect Global strength, local expertise and experienced intellectual of a national RPS looming on the horizon, utilities actively assets are key. Couple that with the collaborative approach among engaged in renewable energy production will enjoy a competitive Exelon’s Power Team, Conergy, the Pennsylvania Department of advantage in not only diversifying their portfolios and establishing Environmental Protection (PADEP) -- and Waste Management, Inc.’s a financially rewarding approach to energy independence, but in willingness to creatively transform landfill buffer into a productive positioning themselves as caring contributors to cleaner, more vital clean energy utility plant site -- and success was inevitable.
neighborhoods for the communities they serve. UNPRECEDENTED BENEFITS FOR UTILITIES
What’s the up side? It’s the bottom line. Numerous agencies across the U.S. are inquiring about the Exelon- THE THREE E’s IN FERTILE ECONOMIC GROUND
Conergy Solar Energy Center (EC-SEC) and how it can be used as a model in their respective jurisdictions.
The electric business is large and complex, with over 3,000 electricity providers serving consumers across the nation. Government Before we dive into the project details and benefits, let’s look at the mandates can bring fear and frustration to the companies being larger landscape of renewable energy – the RPS challenges and
regulated. In today’s perfect storm, the economic opportunity of
economic opportunities it offers today’s utilities and large-scale
this regulatory activity – particularly in today’s competitive landscape – brings fiduciary and operational benefits to the balance sheet that in the past would not have been considered. And these economic opportunities -- market stimulants, subsidies, tax incentives -- offer O u r w O r l d i s f u l l O f e n e r g y
utilities the opportunity to create a sustained profitability that can is at its strongest when utilities need it most. It is a versatile energy portfolio variable that can also serve as an effective complement to portfolios where wind and hydro already exist. The economic opportunity uniquely captured by utility scale solar
energy is manifested in the three ‘Es’: Energy, the Environment ENVIRONMENT
Not long ago, environmental programs were seen as adverse to good bottom-line strategies. Regulatory agencies were seen as obstacles to business development. Not anymore. The deployment Historically, utilities in industrial economies generate well over 90% of clean, renewable energy enables utilities to cost-effectively offer of all electricity. Today, more and more businesses and consumers low-carbon energy while reducing the greenhouse gas emissions are embracing the aforementioned tax credits, state rebates and (GHGs) associated with energy production. Utility-scale solar energy consumer mindset that on-site generation can give ratepayers a addresses climate change issues, creates cleaner air for our citizens hedge against rising energy costs by purchasing and deploying and earns utilities valuable credits toward portfolio standards. The on-site solar systems to generate electricity. deployment of solar energy by utilities sends a good neighbor message of corporate responsibility to rate-payers, shareholders An appetite for distributed generation is taking a bite out of
traditional, peak-hour revenue opportunities. To maintain
market share, utilities can offer consumers who are considering
As evidenced in the action of the U.S. Congress and the Obama purchasing their own systems – property owners, businesses and
Administration, advanced energy portfolio standards and the public agencies – a clean energy option. Solar can happen fast.
jobs they create, the clean, plentiful energy they provide, and positive contributions they make to addressing the consequences One of solar’s great attractions for utilities is that consumer electricity of global climate change can be key drivers for project regulators demand and the power that utilities must provide throughout a typical day neatly track the daily and seasonal energy of the sun. Solar energy technology is uniquely positioned to be developed for Embracing the philosophy that environmental challenges can become distributed generation in highly-congested areas and load pockets, economic opportunities, the Commonwealth of Pennsylvania – an allowing energy to be produced where demand exists. undisputed leader in the last century’s Industrial Revolution – is now leading the way in the Renewable Revolution. The first oil well ever One in ten of the world’s solar photovoltaic solutions are designed, built was in the Keystone State, and one result of the state’s Twentieth engineered and/or installed by Conergy experts. What gives Century boom-time successes with coal and steel production is that utilities the confidence to entrust Conergy with large-scale, turn- it now produces 1% of the world’s carbon.
key solutions is Conergy’s global financial strength, its longevity in the photovoltaic space and its unmatched expertise in successfully Pennsylvania Governor Edward G. Rendell and the Pennsylvania installing or engineering projects with collective generational Department of Environmental Protection are actively bringing capacities of over 1 Gigawatt.
incentives to the table that augment federal perks to make environmental stewardship integral to sound fiscal policy. More than 400 Megawatts of Conergy’s 1 Gigawatt of portfolio strength are manifested in the company’s 10-year track record The Exelon-Conergy Solar Energy Center is a good example of with market-leading utility-scale projects. Conergy’s world-class how (through progressive political will, creative partnerships and engineering teams have broad and deep experience in designing innovative technology), Pennsylvania has created an economically and building modular photovoltaic solutions with the latest thin-film viable approach to addressing today’s economic and environmental and crystalline technologies. The innovative configurations Conergy issues that is far ahead of most of the nation. engineers have designed to optimize output while minimizing footprint – together with the low-maintenance nature of solar PV ECONOMICS
(few moving parts) translates into high reliability/low maintenance solutions for Conergy customers.
2009 is rife with economic opportunity for utilities. First there’s the unprecedented Congressional action allowing utilities to claim a Projects involving other forms of renewable energy (like wind and hydro- Solar investment Tax Credit for up to 30% of renewable energy electric power) are often site- specific and far from their consuming/ system costs. This same subsidy will be offered to businesses target markets. Additional y, the variable generating capacity of wind and home owners. Billions of economic stimulus plan dollars are makes it unsuitable for meeting peak demand requirements.
being allocated for investment in renewable technologies and their deployment. Upcoming legislative activity looks to invest even more Today’s solar energy is a mature, reliable, field-tested technology public dollars in renewable energy and energy efficiency. that has reached a level of technical sophistication and affordability significant enough to warrant serious utility industry consideration, Versatile financing options are also improving the economics of going particularly during peak demand. Simply said, solar photovoltaics is solar. In light of current capital market challenges -- and the ushering a proven, easily-deployed technology that provides a fuel source that in of a new administration that has clearly articulated that bold, clean O u r w O r l d i s f u l l O f e n e r g y
O u r w O r l d i s f u l l O f e n e r g y
energy policies are the cornerstone of its economic policy -- solar While local expertise is essential to capably clearing so many of the energy is being perceived now more than ever as a safe and sought- hurdles of projects of this scope and scale, utilities traditionally seek after investment. Still, finding solid financing opportunities for peer corporate players to ensure their high-profiled projects are projects of this scope and scale can be challenging. Project funding successful. Savvy players with market longevity who can sustain for projects like the Exelon-Conergy Solar Energy Center (below) can partnerships for the 20 to 25-year life of a project bring invaluable be secured by Conergy Finance, (formerly Epuron), a wholly-owned confidence to these publicly-scrutinized deals. In this economy and subsidiary of Conergy AG that develops, funds and operates large- in the burgeoning photovoltaic space, Conergy’s global experience brings strength and security to the table. Conergy presents clients with an array of innovative financing The more than 10-year track record of Conergy’s globally-renowned options to get renewable energy systems up and running and engineering teams is legion, and is an important gauge of the accuracy with which Conergy-produced utility-scale power plant projects deliver on predicted output. Providing additional economic credibility to the business case for solar photovoltaics is a litany of specific Return On Solar Investment EXELON’S PLACE IN THE SUN
(ROSI) benefits, some quantifiable, some more easily measured in terms of social and political capital and improved customer Closer to home – in the Commonwealth of Pennsylvania – Exelon emerged as an early leader in portfolio diversification. Today, Exelon boasts a diverse energy portfolio that includes wind, hydro-electric REALIZING RETURN ON SOLAR INVESTMENT (ROSI)
power, gas, nuclear energy and now, solar photovoltaics. As one of the largest power companies in the US, Exelon and the Exelon Power At CONERGY we believe that the return on solar investment (ROSI) is Team are leading the way to U.S. energy security and diversity, while more than just the favorable life cycle cost of energy. ROSI delivers: enjoying a sound Return on Solar Investment.
| Renewable Portfolio Standard (RPS) energy credits; Solar as an energy solution is simple and straightforward. Solar | Federal tax credits and accelerated depreciation of assets; energy projects, particularly in this economy, are complex and can | On-site energy production that tracks peak energy involve multiple customers and contracts. So how did Exelon get | A clean, emissions-free fuel source without environmental It was Exelon’s success in pioneering other renewable that led to | No fuel costs, transportation costs, emissions or waste; its interest in solar possibilities. One of the first steps in making | Flexible siting options without costly zoning or permitting.
the Exelon-Conergy Solar Energy Center (E-C SEC) a reality was | Intermediate load production that can offset the cost of consultation and planning between local Exelon and Conergy upgrading transmission lines and equipment; professionals. Understanding the immense opportunity to make a difference in the Pennsylvania marketplace, developers at Conergy | Easing of grid stress on taxed transmission and distribution were already formulating the case for utility-scale solar in the context of the Pennsylvania market. The initial series of meetings between the two led to an evaluation of credentials -- and an understanding | A simple energy solution with low training costs for that Conergy‘s engineering team had the engineering savvy, track record, local work experience, and the financial wherewithal to provide a menu of solutions to creatively and cost-effectively meet | Modular instal ations that can be precisely modified to the goals and objectives of the project and ensure it came to fruition.
Public-private partnerships like that of the Exelon-Conergy Solar | Unswitched capacity for utilities operating in states using Energy Center allow agencies to initiate large-scale projects that can have meaningful impacts on meeting Renewable Portfolio Standards | A remarkable degree of positive publicity, social (RPS). Conergy is available to assist regulated and unregulated acknowledgement and customer good will for improving entities in all 28 of the U.S. states who currently have RPS to evaluate the quality of life for citizens served.
their options and provide unbiased counsel on the best energy systems to meet their needs – and then to assist them in maneuvering among LOCAL EXPERTISE POWERED BY GLOBAL STRENGTH
the myriad power generation groups, public utility commissions and 1 in 10 of World’s Solar PV Systems Are Built, Engineered or
environmental and regulatory bodies to ensure their large-scale Installed by Conergy
projects are developed within budget and on time.
The market potential of solar photovoltaic solutions for utility-scale Commensurate with that is working with municipalities, counties power plants has attracted many new players, who, in their zeal to and state agencies to educate them about renewable energy and the win business, may underbid projects or go after projects where they beneficial impacts of solar photovoltaic plants -- and to discuss the need subcontractors to perform critical project components. passive environmental impacts of utility-scale solar projects. O u r w O r l d i s f u l l O f e n e r g y
O u r w O r l d i s f u l l O f e n e r g y
Conergy teams stayed on top of key project considerations The project manifests a meaningful way for Pennsylvania to jump- involving multiple customers and contracts for the host site, energy start activities to meet its renewable portfolio goals while creating off-taker, financing entity and Solar Renewable Energy Certificate the ancillary benefit of green collar jobs in the nation’s new clean energy economy. And, given the new economic stimulus plan, there just might be some added incentives for those interested in reaping They also negotiated the finance lease contract components and myriad SPV (Solar Photovoltaic) contract components, which included three contracts, a site lease and the energy off-taker WHERE WE ARE, THERE’S ENERGY
arrangement. Specifics are available by contacting the Conergy professionals listed at the end of this case study.
The business of renewable energy is rife with energy – and steeped with promise. Clean energy projects and economic development are PAY DIRT: Breaking New (Siting) Ground
no longer diametrically opposed philosophies. They are hand-in-glove. And unlike the historic nature of utility-scale energy projects, Another ground-breaking component to this project was its location. communities are now welcoming clean energy solutions like the The Exelon-Conergy Solar Energy Center was designed to serve the Exelon-Conergy Solar Energy Center and finding ways to incorporate power needs of businesses, public agencies and home owners in the greater Philadelphia area. Philadelphia is the nation’s sixth- largest city and, as with any major metropolis, it has real estate constraints. Conergy’s Project Development Team have earned a place as trusted With support from the Pennsylvania Department of Conservation, in advisors to help utilities navigate the challenges they face with RPS rolled landfill management company Waste Management, Inc. (WMI), mandates, regulatory compliance, customer goodwill and the need who – along with the Exelon Power Team -- saw the value of the buffer to forge a balanced portfolio of energy options. Their expertise land around its G.R.O.W.S. landfill project as an ideal way to generate ensures optimal financial and energy performance for the entire life power in proximity to the greater Philadelphia region. Leasing this remnant land (in the case of the E-C SEC, a 16.5-acre To learn how Conergy’s turn-key, customized solar solutions parcel) for the siting of clean, renewable energy projects was a can benefit your utility, business or public agency, phone Sarah terrific way to afford this land-constrained metropolitan area a Hetznecker or Gary Sheehan at the Conergy Projects Team, low-cost venue for clean, power generation without the need for 1.888.396.6611.
costly transmission lines. The project leaves much promise for the development of similar sites across the state. Pennsylvania has a With special thanks for the insights of Travis Bradford, author of higher concentration of landfills than many U.S. states. SOLAR REVOLUTION: The Economic Transformation of the
Global Energy Industry.
PENNSYLVANIA: A Bellwether for State Renewable Energy
Standards
The 3 MW Exelon-Conergy Solar Energy Center is also a keystone Exelon-Conergy Renewable Energy Center Project Snapshot
project of Pennsylvania’s Advanced Energy Portfolio Standard. Financing
The Standard mandates that Pennsylvania utilities obtain 18% of Power Output
their energy from renewable and advanced sources by 2020. And it mandates a carve-out for solar photovoltaics. Solar Electricity Generated
Service Area
In support, Exelon Corporation established a corporate goal Location
WMI G.R.O.W.S. Landfil , just outside of to reduce, offset or displace more than 15 million metric tons of greenhouse gas emissions (GHG) by 2020. They are doing this by: 1) Project Site
Reducing or off-setting Exelon’s carbon footprint by greening their operation; 2) Helping their customers reduce GHG emissions, and; 3) Project Timeline
Offering more low carbon electricity in the marketplace. Comminssioning
The carbon emission reduction this project is realizing was an Project Life Expectancy
important consideration in earning the support of key administrators Environmental Benefits
within the Commonwealth of Pennsylvania’s Department of Annual CO2 emissions reduced by four million pounds,
Environmental Protection, who played a pivotal role in helping Annual NOx emissions reduced by over 9,000 pounds, and
Conergy garner or reinforce the support of a spectrum of state and Annual SOx emissions by reduced by 28,000 pounds.
1 Generation, LLC is purchasing the power and renewable energy credits
The environmental benefits of the Exelon-Conergy Solar Energy of the EC-REC through a long-term Power Purchase Agreement (PPA). Center will be as effective as eliminating the pollutants that come from driving more than 100 million miles on Pennsylvania’s roads.

Source: http://www.conergy.ca/Portaldata/1/Resources/usa/pdf-downloads/Solar_Energy_Utility-Exelon_Project_Services_Case_Study.pdf