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Posts Tagged ‘keys to success’

This is the second post in our series highlighting “keys to success” for community renewable energy projects. In this post, we focus on how to build a savvy project team to ensure the success of your project.

Who should I consider for the project team?

To build a project team, consider the human capital in your community. Local resources may include volunteer energy committees, municipal energy coordinators, schools and universities, and private citizen groups. Invite interested parties to lend their expertise to the community’s clean energy efforts and create a strong team through collaboration.

Renewable energy projects can be very time-intensive. We have found that the most successful teams have at least one project champion. Ideally, this individual is able to manage the time requirements of the project, and they can organize and motivate a strong team of supporters. The project champion ensures that the project progresses even when other project team members are largely unavailable. They help identify solutions in the face of opposition. These individuals are the backbone of the project team, and they can be critical to a project’s success.

With their wealth of knowledge of municipal facilities, finances, and politics, local officials and staff are also valuable project team members. Facilities managers have detailed knowledge of potential project sites. Finance committee members can critically review price proposals. Teachers can help negotiate the most valuable educational “add-ons” to a project. Town counsel or city solicitors can provide a detailed legal review of contract specifics such as indemnification, representations and warranties, and default and remedies. While local officials and staff may have limited time, their expertise and ownership of a project makes for a very strong negotiating team.

Savvy volunteers often represent the majority of project team members. Consider energy and sustainability-focused disciplines at local academic institutions. Professors may be willing to lend their expertise, and students may have both valuable skills (e.g., financial modeling) and a flexible schedule. Solicit participation among your community’s retirees. Former small business owners, financiers, and engineers –especially those with an interest or experience in clean energy—frequently lead very effective project teams. Tap into existing local energy or climate change committees for those with demonstrated interest in municipal sustainability efforts.

Finally, look to regional organizations, such as regional planning commissions, and state and federal government for technical assistance programs. The U.S. DOE regularly presents technical assistance webinars for state, city, county, and tribal energy practitioners through their Technical Assistance Program (TAP). On September 28, 2011 at 2 p.m. EST, a TAP webinar will cover “Advanced Topics in Power Purchase Agreements,” including the complex terms and conditions of these contracts. The TAP blog provides an up to date list of technical assistance webinars and other resources for communities interested in renewable energy. In Massachusetts, DOER’s Green Communities program provides a range of resources and funding to cities and towns promoting energy conservation and renewable energy.

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One of the main determinants of whether an RFP for a Power Purchase Agreement (PPA) will attract qualified developers and advantageous bids is estimated total potential capacity. If this information is not available, site area or rooftop square footage can serve as a proxy.

More Space. More Attention.

When conceiving of a renewable energy project, cities and towns should look to aggregate potential sites. Whether or not a PPA makes sense for the community will depend on the total amount of capacity that is feasible. For example, some PV developers require 500 kW of PV potential before proposing a solar PPA. Others will not pursue landfill solar projects that are smaller than two (2) MW. By aggregating as many rooftops and open spaces as possible in your project RFP, you will attract more vendors and capture economies of scale.

Whether conducting your own due diligence or investing in site assessments, your RFP should ultimately focus on quality sites. Buildings with aging roofs, for example, should be set aside for future phases. Those with many rooftop penetrations and little usable space should similarly be deferred.

 If publicly-owned buildings and open spaces are very limited, look elsewhere. Consider partnering with a neighboring municipality or other public entity in the region (e.g., schools, hospitals). This may be especially helpful where the potential partner has experience with renewable energy projects. Together, you may receive bids that neither could have attracted alone.

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