CUC still finalizing solar energy project

The Commonwealth Utilities Corp. is still finalizing its solar energy project, according to executive director Alan Fletcher

“There still hasn’t been any action on it yet but we are working toward it,” Fletcher told Saipan Tribune.

He said they are on track to develop a power purchase agreement with American Capital Energy.

In last month’s board meeting, CUC board chair David Sablan Jr. was not quite too sure about finalizing the project because he wanted Rota included.

“We have to really look into the solar energy because we are not too sure how the project will pan out but we also need CUC’s report from their management and maybe have another contractor for Rota,” Sablan told board members.

Fletcher said that CUC envisions solar plants of up to 0.6MW for Rota and up to 9.4MW for Saipan.

During their board meeting in July, Sablan said there could be problem with the 0.6MW CUC envisions for Rota because the island needs more than that.

Sablan recommended that the contract for Rota be amended or that another RFP be issued for an additional 1.4MW, but Fletcher said that CUC should avoid over-procurement. He did note that the project is expandable in its design.

Rota is currently at 1.3MW in diesel generation for peak maximum usage.

On June 19, ACE disclosed that CUC gave them an exclusive right to negotiate a solar power purchase agreement in 2011.

The CUC board gave CUC management the go-signal on June 19 to move forward with the PPA and finalize the contract with ACE, with consideration that the planned 10-megawatt capacity is built on Saipan (8MW) and Rota (2MW).

The project cost is estimated from $35 million to $40 million.

Fletcher’s example is that CUC would not build a new 80MW power plant on Saipan.

“Our current demand peaks at around 35MW. If we were to build a new plant, we would build to the current demand, say 40MW range,” Fletcher earlier told Saipan Tribune. “And build in the ability to expand in the future as new customers come online and scales increase.”

According to Fletcher, CUC continues to work through a backlog of customer-owned solar project applications now totaling 2.3MW. “It counts for over 30 percent of CUC’s annual operating and total budget,” Fletcher said.

Fletcher said considerations for completion are the final sizing to allow some net metering, final pricing of markets more favorable today, final contract form, and financial guarantees of assets now available if the solar project were to come into action.

ACE is looking at building the project within 46 months.