Invenergy's Grand Ridge Solar Plant Begins Construction

In another example of the state's Renewable Energy Standard creating jobs, Chicago-based Invenergy begun construction on the state's largest solar energy project this week, a 20-megawatt project adjacent to their existing Grand Ridge wind farm in LaSalle County. From an article in the Times of Ottawa:

Construction of the 140-acre solar farm at the southeast corner of East 21st Road and North 15th Road in Otter Creek Township just east of Streator is scheduled to begin Monday.

Joel Schroeder, project director for Invenergy, said union contractor White Construction of Clinton, Ind., is expected to hire more than 100 workers for the job.

The project is one of a handful of new wind and solar projects that are being built in Illinois this year as a result of a competitive bidding process conducted by the Illinois Power Agency last year. Several companies won long-term contracts to supply renewables to the state's utilities in the IPA procurement, including Invenergy's bid for the Grand Ridge solar plant.

We can expect more similar projects, jobs and economic growth in the state if the IPA agrees to hold another competitive, long-term solicitation for renewable energy in the future. From the Times piece:

Streator City Manager Paul Nicholson said a certificate and application as well as fees to utilize the city's enterprise zone have been completed. He expects the first enterprise zone payment of $33,333 to be in the city's possession by Friday or Monday.

The project is expected to bring in an estimated $336,900 in tax revenue per year, with Streator Township High School and Allen-Otter Creek School districts expected to benefit the most.

Streator stands to take in an extra $2.2 million during the next two decades, while Ransom's grade school could see more than $1 million during the 20-year life expectancy of the project.

Schroeder anticipates construction to be finished and the solar farm to be operational by next summer.

He does not expect traffic to be a concern for residents in Otter Creek Township near construction.

"We worked traffic out with the township's road commissioner and construction traffic will be limited to 21st Road coming from the north or the south," Schroeder told The Times.

The solar farm will replace 160 acres of farmland producing corn and soybeans, amounting to .025 percent of the 643,291 acres of total tillable cropland in La Salle County, according to a 2007 census conducted by the National Agricultural Statistical Services.

The project is part of a 20-year power purchase agreement with ComEd.

ComEd will utilize the solar energy-renewable certificates to meet a state policy requiring 0.5 percent of its renewable portfolio be provided by solar energy. State law requires 7 percent of all electricity sold by an electric utility come from renewable resources.

The solar farm is expected to produce 200 megawatt hours per acre, estimated to power about 2,900 average homes annually. In comparison, wind turbines produce 13,500 megawatt hours per acre.

La Salle County, Otter Creek Township, Otter Creek Township Roads and Illinois Valley Community College will benefit as well from tax revenue.

Gov. Quinn's Veto of Electric Rate Reform Puts Renewables Provisions in Question

Illinois Governor Pat Quinn vetoed a bill this morning that would have reformed electric ratemaking in Illinois, saying the ComEd-supported proposal did not adequately protect ratepayers in the state. But the Governor's veto pen also strikes an unintended blow to small and distributed renewable energy sources, as the legislation also included provisions that would have expanded opportunities for individuals and businesses to install on-site renewable generation.

According to an article in the Chicago Tribune:

Flanked by consumer advocates, Gov. Pat Quinn made good on his promise Monday to veto controversial legislation fronted by Commonwealth Edison Co., a move that sets the clock ticking for the bill's proponents to gather enough votes to override the veto.

"It may be a dream come true for Commonwealth Edison, but it's a nightmare for Illinois consumers," Quinn said.

Opponents to the so-called "ComEd bill" had said it was a "Trojan horse" meant to pave the way for the utility to boost its bottom line by gutting the Illinois Commerce Commission's oversight of electricity rate hikes.

ComEd claimed the legislation was essential because it would provide a more stable way to recover the costs of smart-grid implementation -- removing regulatory lag and uncertainty. But changes in the bill would have a profound effect on how rates are determined, how often rate hikes occur and how much profit ComEd would receive.

The ICC, which reviews the utility's books as part of an 11-month process every two or three years, would be relegated to a lesser role under the legislation.

Back in May, a compromise between environmentalists saw the addition of a number of renewable energy provisions into the ComEd bill, additions likely meant to help build support for the bill among green power advocates.

The provisions would have increased current law's limit on "net-metered" renewable energy generation from 40kW to 2 MW, a limitation that many in the distributed renewables sector was holding back larger electric consumers from installing their own solar or wind systems. The bill also included a provision requiring the Illinois Power Agency to purchase a small percentage of its requirement for renewables from distributed sources.

With the law vetoed, the future of the renewables provisions are uncertain. If ComEd is successful in securing enough votes to override the Governor, then the provisions are made law in Illinois. If the utility is not able to override Quinn, all provisions of the bill (both the smart grid and renewables portions) will be back in the hands of the Illinois General Assembly during the short fall veto session, or in next year's general session.

Crain's Chicago Business provided more insight into what may be next for the bill and its backers:

Attention now shifts to the Illinois Legislature, where state Sen. Don Harmon, D-Oak Park, who voted against the ComEd bill in May, has been discussing with lawmakers how to improve the bill enough to win their support. Lawmakers are the focus of the utility’s efforts to override Mr. Quinn’s veto in November.[...]

The governor urged Chicago-based ComEd to scrap its approach and begin discussions with him and other interested parties on another tack to address the reliability of its system. As a starting point, he suggested legislation drafted by the Illinois Commerce Commission, which would allow utilities to charge ratepayers separately for special grid improvements, like so-called smart meters, but keep jurisdiction over the investments with the regulators.[...]

ComEd has been operating since early summer under the assumption that Mr. Quinn would veto the bill and has been working behind the scenes to win over lawmakers who voted "no" or "present" in May, when the General Assembly passed the legislation. The utility fell short — by a handful of votes in both chambers — of the majorities sufficient to override.

In a statement Monday, ComEd expressed disappointment in the veto.

“In the coming weeks, we will work to show how this legislation provides a diverse array of important benefits to Illinois," the utility said. "It is a jobs bill, an economic development bill, an environmental bill, a consumer benefits bill, a regulatory reform bill and an infrastructure bill.”

Rockford Solar Project, Winner of IPA Procurement, Facing Financial Difficulties

The 60-megawatt solar PV project proposed for the Rockford-area is reportedly facing financing difficulties, throwing into question whether the project will be built in time to deliver power to ComEd by June 2012, as required in the power-purchase agreement (PPA) the company inked with the utility last year.

The Wanxiang solar project was one of the winners of a competitive solicitation for 20-year bundled PPAs with Illinois utilities that was held last fall by the Illinois Power Agency (IPA). Two new wind projects and one other solar project in Illinois were also winners of the solicitation. While both wind projects and the solar project are now or soon to be under construction, well in time to meet the June 2012 deadline, the fate of the Wanxiang project remains unclear.

From an article on Midwest Energy News:

[T]he proposed Rockford Solar Project in Rockford, Ill., was to have been the Midwest’s largest solar farm, but Pin Ni, the chief executive of Wanxiang America, a leading partner in the joint venture building the facility, told Midwest Energy News that in terms of financing, “we’re in the middle of nowhere.”

The difficulty experienced by even Wanxiang, a company known in the business world for having deep pockets, may illustrate just how tough solar developers will find the Midwest, especially as the economy continues to struggle.

However, the article states the company may be able to build at least the small portion of the project that is committed supply ComEd:

[Wanxiang exec Pin] Ni has dashed a bit of cold water on those expectations. “Financially, [getting to 62 megawatts] is going to be a challenge,” he said. In fact, right now, he says he does not see how it can be done.

The new plan, if the project receives approval this fall from federal environmental and aviation officials, is to build an approximately 3 megawatt demonstration project and then search for private investment to expand the farm.

“We can’t just depend on the government,” Ni said, and explained that even a 20 megawatt farm could cost $80 million.[...]

Wanxiang’s purchasing agreement was only for 3.5 megawatts, he said. He maintains that the state needs to approve larger power purchasing agreements before private investors will even consider sinking the amount of capital needed to build the 62 megawatt farm that was presented to the public last year.

Invenergy Approved to Build Illinois' Largest Solar Energy Project

The LaSalle County Board has approved Invenergy's proposal to build a 20MW solar project near the Grand Ridge Wind Farm site, paving the way for the construction of what will be the largest solar energy facility in the state.

The project will supply power to ComEd customers in Chicago and northern Illinois. The construction of the solar farm is a great example of how the state's renewble energy standard (RES) can create jobs and economic growth in Illinois, as the project would not be happening if not for action taken by the Illinois Power Agency (IPA) in late 2010.

The IPA held a procurement event in December of last year seeking to broker power purchase agreements (PPAs) between ComEd and renewable projects in Illinois and other states. Invenergy's bid was among the winners in the procurement, and the company is now building the project to deliver power under the PPA contract. Policymakers in Illinois need to understand that additional solicitations for PPAs would yield similar results.

According to the Times of Ottawa:

In a near-unanimous vote at its meeting Thursday, the La Salle County Board, without discussion, steam-rolled a county Zoning Board of Appeals recommendation and approved locating a 140-acre solar farm five miles northeast of Streator.

Thepath is now clear for Invenergy, which operates the Grand Ridge Wind Farm, to build its Grand Ridge Solar Farm, which will be the biggest in the state.

On July 19, the ZBA voted 4-3 against the necessary special use permit for the project, saying the high-quality farmland in Otter Creek Township needed to be preserved for agricultural use.

Invenergy said the solar farm would be dismantled after 20 years and that the project benefits included an estimated 100 construction jobs and more than $336,900 in annual taxes.

Thursday the County Board chambers were filled with numerous interested persons, including representatives of Invenergy, ZBA members and Streator officials.

Kevin Myers, superintendent of Streator Township High School, told the County Board his district's annual share of the solar farm's tax revenue — $150,000 — would pay for four teachers.

"Those four teachers during one day impact 500 kids," he said.

"I am asking you to invest in our future," Myers said. "I'm asking you to invest in the solar energy project and see the benefit that it can have, not only for the students and the community, but for the whole county."

After a brief explanation of the project by Mike Harsted, the county's director of environmental services and land use, the vote was taken without any call for discussion.

Board member Tom Ganiere, D-Ottawa, later said he was surprised there had not been any debate.

Ganiere, who also is chairman of Ottawa's plan commission, said he did notbelieve the ZBA's reasoning behind voting against the special use was valid.

He said one of the main tenants of zoning is to prevent adjacent property owners from harmful or innocuous uses.

"This is not an innocuous use and it's not preventing that farmland from ever being used again," Ganiere said.

He noted it was up to the owner whether the land was farmed at all.

The only vote against the solar farm approval was Russell Boe, R-Ottawa.

Boe later said he is not opposed to a solar farm project, butbelieves it would have been better to locate the project on less productive ground.

"I believe we could have gotten a lesser quality of agriculture siting, or maybe even a reclamation site," Boe said.

"Maybe they wouldn't have found that in La Salle County — I don't know — they might have had to go to another county.

"But if you look at the ethics of prime farm ground, the ethics would be to try to preserve it."

Streator Mayor Jimmie Lansford, who was in the audience, said the project would benefit the city through the solar farm's anticipated inclusion in the city's enterprise zone.

"Not nearly to the extent as the wind turbines, but it will help."

Invenergy issued a statement saying it was "extremely pleased with the La Salle County Board vote today in support of our proposed Grand Ridge Solar Farm. The project will produce clean, renewable solar energy for La Salle County and our home state of Illinois."

LaSalle Co Schools Could See Millions From Invenergy Solar Project

Though the Zoning Board of Appeals rejected Invenergy's special use permit application last week, school districts in LaSalle County are pushing the County Board to approve the company's application to build the state's largest solar photovoltaic project near Ransom, saying the project would bring a massive influx of new tax revenue to the rural districts. 

Similar to the benefits local schools see from wind development, schools in the rural area would see a major boost in new property tax revenue the solar farm would bring. According to a story from the Times of Ottawa:

For Streator Township High School and Ransom's Allen-Otter Creek school districts, the project could be a means to increase revenue without having to dig into taxpayers' pockets — and possibly avoid cuts. Taxing districts for La Salle County, Otter Creek Township, Otter Creek Township Roads and Illinois Valley Community College also will benefit if the project is approved.

Streator stands to take in an extra $2.2 million during the next two decades, while Ransom's grade school could see more than $1 million during the 20-year life expectancy of the project.

For the solar project to be approved, a simple majority of the County Board would have to vote in favor, according to state statutes.

"From a school's standpoint, it provides an increase and a steady source of reliable income," said Kevin Myers, STHS superintendent. "This could also minimize the tax rate we ask from our district."

While the high school plans to abate 100 percent of school district taxes through the enterprise zone program, it will receive a sharing agreement fee equivalent to what 50 percent of the taxes would be if the abatement did not exist.

This is beneficial to both Invenergy and STHS, since general state aid funding to STHS would decrease as taxes collected from property values increase.

Myers said the net benefit of abating taxes and collecting a payment instead equates to $914,000 during a 16-year period. For example, in 2015, STHS would receive $179,000 if it entered into the agreement, rather than the $102,000 it would receive from the increase in property tax values and loss of general state aid.

Unlike Streator, Ransom does not have an enterprise zone to offer. It will benefit from additional funding from an increase to property values in its district. The greatest gains will come at the beginning of the farm's life and depreciate each year as the project nears its end.

With the increase to its tax base from surrounding wind turbines and the potential solar farm, the school's superintendent Mary Pat Baima anticipates a decrease in state funding but anticipates a net gain for the school.

She does not foresee the school taking a hit when the project is decommissioned.

"We plan for that," Baima said. "We look ahead and make sure we are aware of what's happening and how it will affect our funding."

Who benefits?

Below is the breakdown by taxing district:
La Salle County:  rate 0.9404  revenue $47,020
Otter Creek Twp.:  rate 0.2123  revenue $10,615
Otter Creek Twp. Roads:  rate 0.2512  revenue $12,560
*Streator Twp. High School:  rate 2.9692  revenue $148,460
Allen-Otter Creek School:  rate 2.0240  revenue $101,200
Illinois Valley Comm. College:  rate 0.3427  revenue $17,135
Total:  rate 6.7398  revenue $336,990

These figures are based on preliminary construction estimates and input from the La Salle County Assessor's Office. It is estimated that Invenergy will be paying the County in excess of $300,000 in annual property taxes, which equates to about $5 million in equalized assessed value.

*STHS plans to abate these taxes as stated above

Invenergy won a contract to supply power to ComEd thanks to a 2010 solicitation for power purchase agreements (PPAs) held under the authority of the Illinois Power Agency. Another similar solicitation would ensure that other new wind and solar projects are able to move forward in Illinois, further boosting the state's struggling economy.