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Work Session   Item #:
Work Session Meeting
Proposed Ringgold Solar Project
Work Session: 09/04/2018
Danville Utilities has energy replacement needs starting in 2021 due to an expiring power supply contract. After extensive evaluation, staff recommends pursuing two solar peaking generation projects that would be beneficial to the ratepayers of Danville Utilities. These two projects will help reduce the City's rising transmission, capacity, and congestion charges. The Ringgold solar project would be located on what is now known as the Ringgold Golf Course. The site would generate up to twelve megawatts of solar energy and capacity. The City would not be responsible for any of the upfront capital costs or the maintenance of the facility.
Staff evaluated approximately a dozen possible solutions for the 2021 power supply replacement needs. Several solar and natural gas responses were considered and compared to current and forecasted market prices. Solar generation was the lowest cost solution mainly due to the federal investment tax credits private developers can leverage. In order to take advantage of a 30% federal investment tax credit, a prospective solar developer would need to have a project under construction by December 31, 2019. The estimated generation for the Whitmell and Ringgold solar farms is approximately 50,000-megawatt hours per year. This equals to be approximately 5% of Danville's system load.
Staff recommends Danville City Council approve entering into a purchase power agreement for twelve megawatts of renewable solar power to be constructed within the Danville Utilities service territory as recommended by the Danville Utility Commission.
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