Item 9- RFP for Renewable Energy and Storage Technologies Briefing — original pdf

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2024 Renewable & Carbon-Free Resources Request for Proposals (RFP) Summary Michael Enger Vice President, Energy Market Operations & Resource Planning July 2024 © Austin Energy Overall RFP Process Components Maintain on-going contact with renewable developers and marketers Solicit proposals through the Request for Proposal (RFP) process Analyze proposals Make recommendation to the Electric Utility Commission Seek authority from City Council to negotiate and execute agreement 2 Request for Proposals Overview Proposals for the purchase of energy, capacity and associated environmental benefits – 50 MWs to 500 MWs RFP Issued Deadline for Questions Responses Due April 19 May 3 June 7 Wind Solar Battery Storage Carbon-Free Projects (such as fuel cells & geothermal) 3 RFP Responses Overview • Bids from 42 different companies • Approximately 100 projects Battery Storage (more than half) • Solar • • Wind Other • • More than 350 proposals Term (10 – 30 years) Settlement location (busbar, hub) Storage duration (2-hour, 4-hour, longer duration) • • • 4 Nominal Pricing Overview Nominal pricing is impacted by geographic location, settlement point, Power Purchase Agreement term length and storage duration (hours) Solar Low $30s to upper $70s per MWH Wind Low $30s to upper $50s per MWH Battery Storage Low $6s to upper $30s per kW-month 5 Analyzing Which Proposal Delivers the Most Value Economic Analysis Project Viability Developer Experience Financial Viability • Contract cost & terms • Fundamental modeling • Stochastic modeling • Power flow modeling • Historical look at proxy nodes • Adequate infrastructure • Portfolio fit • Regulatory risks • Proven track record with technology • Project experience in ERCOT • How likely the project is to receive financing • Financial capabilities of the developer 6 Austin Energy Generation vs Proposal Developments Austin Energy Generation Wind Solar Other Proposals Wind Solar Storage 7 Next Steps Complete Fundamental and Stochastic Modeling Complete Power Flow Modeling on Short Listed Proposals Make Recommendation to Electric Utility Commission Short List Proposals Internal Discussion and Recommendations Seek Authority from City Council to Negotiate and Execute Agreement 8 ©Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.