Feasibility Study of Economics and Performance of Solar Photovoltaics at the Atlas Industrial Park in Duluth, Minnesota. A Study Prepared in Partnership with the Environmental Protection Agency for the RE-Powering America's Land Initiative: Siting Renewab

摘要

The U.S. Environmental Protection Agency (EPA) Region 5, in accordance with the RE-Powering America's Land initiative, selected the Atlas Industrial Park in Duluth, Minnesota, for a feasibility study of renewable energy production. Under the RE-Powering America's Land initiative, the EPA provided funding to the National Renewable Energy Laboratory (NREL) to support a feasibility study of solar renewable energy generation at the Atlas Industrial Park. NREL provided technical assistance for this project but did not assess environmental conditions at the site beyond those related to the performance of a photovoltaic (PV) system. The purpose of this study is to assess the site for a possible PV installation and estimate the cost, performance, and site impacts of different PV configurations. In addition, the study evaluates financing options that could assist in the implementation of a PV system at the site. The feasibility of a PV project depends greatly on both site-specific and economic factors. Site-specific factors include the available area for an array, solar resource, distance to transmission lines, and distance to major roads. In addition, the operating status, ground conditions, and restrictions associated with redevelopment of contaminated sites impact the feasibility of a PV system. Economic factors include purchase price of the electricity produced, power purchase agreement (PPA) price, and retail electric rates along with federal, state, and utility incentives for PV systems. The Atlas Industrial Park is a 62-acre brownfield site currently undergoing remediation and redevelopment. The Duluth Economic Development Authority (DEDA), which owns the property, is considering a 2-acre parcel for a PV installation as part of its redevelopment plan. Based on an assessment of the site conditions, the Atlas Industrial Park is suitable for deployment of a large-or small-scale PV system; however, the economics specific to the area currently limit the financial viability of a PV installation. Table ES-1 summarizes the performance and economics of the different PV systems and the development/financing options evaluated in this study. The table shows the annual energy output, the levelized cost of energy (LCOE), and the PPA price along with the payback period and cost of each system.