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 Power Purchase Agreements
The energy efficiency (EES) and new power options (NPOS) studies are important steps to IRC being awarded the opportunity to complete power purchase agreements (PPAs) on behalf of our customers or in partnership with them through the IRC Program. However, the EES and NPOS studies are not always required to win power purchase agreement opportunities. As shown, the tasks and deliverables for these studies were developed to apply across multiple industries, leading us to the implementation of New Energy Solutions for Quick wins, Upgrades, and Power Investments.
The decision from our customers to invest in Power Investments will provide IRC opportunities to complete PPAs, leading to IRC winning additional contracts for the development and support of Private and Public Power Plants (PPPP). In completing the IRC PPAs, we generally follow the process as established by the U.S. Department of Energy, Energy Efficiency and Renewable Energy (EERE). We execute three major phases, from the establishment of the project team through vendor and contracting agency selection, project construction, publicity, and operation.
Power Purchase Agreements Process Overview
| Major Phases |
Major Tasks |
Major Deliverables and Decisions |
| ONE |
Form Project Teams & Complete Project Plan |
•Form project team, consisting of champion, decision-maker, energy manager, facilities, contracting officer, attorney, renewable expert, electrical engineer, budget, real estate, environmental, sustainability, safety, and others.
•Determine if there are non-federal stakeholders (other than the utility) that will have an interest in the project.
•Complete project plan, establish roles and responsibilities, and keep project on track. (Plan Example: PPA Plan for Biomass & Waste-to-Energy Renewable Solutions)
•Note: This process assumes that evaluation of contracting/financing options has already occurred and the PPA option has been selected. |
| ONE |
Assess Renewable Options and Gather Utility Bills & Electrical Drawings |
•Solar options include PV (ground mounted, roof-top, carport) and concentrated solar power, concentrated PV.
•Thermal projects such as biomass or solar hot water are possible PPA options.
•Large projects are best (private sector not interested in small projects <100 kW).
•Gather utility bills and other energy use information -utility tariff type, rate/demand charge structure (peak/non-peak), competitive electric supply if applicable.
•Gather electrical drawings and site information, and include as part of RFP package. |
| ONE |
Project Cost Effectiveness Analysis |
•Applicable incentives (rebates, tax incentives, etc).
•Potential rate impacts and other pertinent utility policies (standby charges, tariff impacts, net metering).
•Select project option(s) - renewable type, project location(s), and estimated size.
•Investigate NEPA and other environmental/permitting requirements. |
| ONE |
Explore Land use Agreement |
•Environmental baseline study (to document conditions that must be met at end of contract if system removal and restoration is required).
•Land appraisal and/or legal survey. |
| TWO |
Choose Contracting Agency |
•Site or other agency contracting staff.
•Defense Energy Support Center (DESC) Renewable Team.
•Sites in western U.S. can utilize Western Area Power Administration as contracting agent. They negotiate & sign the PPA contract (once renewable developer is selected).
•Optional step - Request for Information (RFI), Request for Qualifications (RFQ).
•Develop Request for Proposal (RFP), "Opportunity Notice," or other procurement document. |
| TWO |
Issue RFP and Distribute Widely |
•Federal business opportunities.
•Use green power network.
•Applicable renewable industry association, others. |
| TWO |
Site Visits and Tours & Pre-Proposal Meeting |
•Access requirements.
•Safety plan (especially if roofs involved).
•Ensure everyone has access to the same information.
•Evaluate bids, award contract. |
| THREE |
Project Construction, Publicity, & Operation |
•Coordinate with renewable developer to ensure that crucial deadlines are met - such as those associated with REC purchase and/or incentives.
•Assist with net metering, interconnection studies/contract.
•Assist with rebate and other incentive applications when necessary.
•Single site point of contact.
•Press conference, press release.
•Web site stories (Federal Energy Management Program or other).
•FEMP focus stories.
•Track actual production. |
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100 Smith Ranch Road
Suite 122
San Rafeal, CA 94903
Office: 866.250.6224
Fax: 415.520.5866 |
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