Solar Development Dhruv Patel January 18, 2013 NAPCO Conference
Solar Development
Dhruv Patel
January 18, 2013
NAPCO Conference
Agenda
AZ Sun Program Overview
Procurement Approach
EPC Contract Structure & Credit Support Requirement
Counterparty Credit Evaluation
Solana Update
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Program to develop 200 MW of APS-owned utility-scale solar PV
Key element of diversifying the way we procure renewables
Developed by third-party contractors and equipment suppliers
Generating Facility
Capacity (Net MW ac)
In-Service
1) Paloma 17 Sep 2011
2) Cotton Center 17 Nov 2011
3) Hyder I 16 Feb 2012
4) Chino Valley 19 Nov 2012
5) Foothills 35 2013
6) Hyder II 14 2013
7) Gila Bend Solar 32 2014
8) TBD 50 2015
Total 200 Note: First 100MW program filed with ACC October 2009; approved March 2010
AZ Sun Program Overview
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1 6 7
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AZ Sun Projects In Operation
Paloma Cotton Center Hyder I
• Capacity: 17MW
• Thin Film, fixed arrays
• Developed by: First Solar
• Location: Gila Bend, AZ
• Capacity: 16MW
• C-Si, 1-axis tracking
• Developed by: SunEdison
• Location: Hyder, AZ
• Capacity: 17MW
• C-Si, 1-axis tracking
• Developed by: Solon
• Location: Gila Bend, AZ
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AZ Sun Projects In Operation/Construction
Chino Valley Foothills Hyder II
• Capacity: 19MW
• C-Si, 1-axis tracking
• Developed by: SunEdison
• Location: Chino Valley, AZ
• Capacity: 14MW
• C-Si, 1-axis tracking
• Developed by: McCarthy
• Location: Hyder, AZ
• Capacity: 35MW
• C-Si, 1-axis tracking
• Developed by: AMEC
• Location: Yuma, AZ
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Procurement Approach
Identify viable sites for development
Execute the land agreement
Complete environmental, GeoTech,
interconnection and land studies
Issue RFP to hire EPC developer
Secure construction
permits Construct the project
Commission the facility
Turn-key to aps EPC
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EPC Contract Structure/Credit Support Requirement
Contract Execution
Counterparty post Credit Support
(5 days after execution)
APS Issues NTP
Counterparty Obtains Construction Permits
Start of construction
Project completion
Performance Guarantee Period Ends
(Credit Support requirement lowered by 50%)
2 Year
5 Year
Supplier Warranty Period Ends
(Return Credit Support to Counterparty)
Credit Support Requirement for 32MW Solar Project
Contract Execution to end of Performance Guarantee (PG) Period: $6 million
End of PG Period to end of Supplier Warranty Period: $3 million
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Counterparty Credit Evaluation
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Liquidity
Balance Sheet Review (Short term)
Internal Cash-Flow Generation
Short-term Liquidity Sources
Capitalization
Capital Structure Composition
Debt Profile
Balance Sheet Analysis (Long term)
Operations Profile
Operational History
Corporate Structure
Profitability History/Trends
Solana Overview/Update
Project Overview
Location: Gila Bend, AZ
Gross Capacity: 280MW
Net Output: 250MW
Technology: CSP
Construction Commenced: Dec 2010
COD: July 2013
Interconnection: Panda Substation (230kV)
Current Status
Overall project 85% complete
Parabolic Trough Collector installation 91% complete
230kV Transmission line installation complete
Salt melting for the storage expected to start Dec 2012; Melting expected to be complete by July 2013
On track to achieve July 2013 commercial operation
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Solana
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