IEEE Electrification Magazine - March 2015 - 67

Cost of Electricity ($)

6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
2014

2019

2024

2029

2034

Cost of Electricity with Solar
Cost of Utility at 5% Energy Inflation
Figure 13. A 2-MW SMS in a 30-ft ISO container. (Image courtesy
of S&C Electric, "Storage Management System," http://sandc.com/
products/energy-storage/sms.asp.)

Figure 14. The PPA reducing the UVI cost of electricity relative to
increasing utility energy cost.

project is complete. The well-structured
TaBle 9. Project Performance Measure.
PPA allows UVI to reduce electricity costs
Performance Measure
Target
immediately (from US$0.51/kWh to
US$0.34/kWh, a 33% reduction) and realize
Renewable energy installed capacity (kW)
3,300
increased savings over time as grid elecRenewable energy produced (kWh annually)
5,900,000
tricity prices rise.
UVI electricity price (cents/kWh)
34
Figure 14 shows a detailed PPA cash flow
analysis over the next 25 years, assuming
2,000
Potential for CO2 reduction (metric tons annually)
an initial PPA rate of US$0.34/kWh, a PPA
Jobs created
10
escalator of 3%, and an annual utility elecJobs retained
20
tric rate increase of 5%. In summary, the
U.S. Department of Agriculture funds (US$)
3,000,000
avoided electricity cost for the first ten
years is US$11,057,098 (a 46% reduction)
Funds leveraged (US$)
10,136,000
and for the first 25 years is US$47,577,968
(a 58% reduction). Additional benefits of
Available: http://www.census.gov/prod/2010pubs/p60-238.
the PPA include 1) no initial capital investment because
pdf
UVI only pays for the solar electricity that is produced
Wikipedia. (2014). United States Virgin Islands. [Online].
after installation, 2) fixed energy rates as the PPA provides
Available: http://en.wikipedia.org/wiki/United_States_
a powerful hedge against volatile electricity prices, 3) UVI
Virgin_Islands
is not responsible for system operation or maintenance,
and 4) a benefit from solar tax credits in the form of a
Biographies
lower PPA rate.
Wayne Archibald (warchib@uvi.edu) is an assistant professor and the director of the Caribbean Green Technology
For Further Reading
Center at the University of the Virgin Islands.
Central Intelligence Agency. (2014). The World Factbook: U.S.
Zuyi Li (lizu@iit.edu) is a professor and the associate
Virgin Islands. [Online]. Available: https://www.cia.gov/library/
director of the Galvin Center for Electricity Innovation at
publications/the-world-factbook/geos/vq.html
E. Lantz, D. Olis, and A. Warren, "U.S. Virgin Islands energy
the Illinois Institute of Technology, Chicago.
road map: analysis," National Renewable Energy Laboratory,
Mohammad Shahidehpour (ms@iit.edu) is the Bodine
NREL/TP-7A20-52360, Sept. 2011.
Chair Professor and director of the Galvin Center at the
S&C Electric, (2014). "Storage Management System," http://
Illinois Institute of Technology in Chicago. He is also a
sandc.com/products/energy-storage/sms.asp
research professor with the Renewable Energy Research
Siemens PTI. (2011). Report R59-11: VIWAPA interconnection
feasibility study final report. [Online]. Available: http://www.
Group, King Abdulaziz University, Jeddah, Saudi Arabia.
viwapa.vi/AboutUs/Projects/ProjectDetails/11-08-02/USVI-BVISteve Johanns (steve@veriown.com) is the cofounder
Puerto_Rico_Interconnection.aspx
and chief executive officer of Veriown in Chicago, Illinois.
U.S. Census Bureau. (2003). U.S. Virgin Islands: 2000 social,
Tom Levitsky (tlevitsky@veriown.com) is the vice presieconomic, and housing characteristics. [Online]. Available:
dent of operations at Veriown in Chicago, Illinois.
http://www.census.gov/prod/cen2000/phc-4-vi.pdf
U.S. Census Bureau. (2010). Income, poverty, and health
insurance coverage in the United States: 2009. [Online].

	

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http://www.sandc.com/ http://www.census.gov/prod/2010pubs/p60-238 http://en.wikipedia.org/wiki/United_States_ https://www.cia.gov/library/ http://http:// http://www.sandc.com/products/energy-storage/sms.asp http://www http://www.viwapa.vi/AboutUs/Projects/ProjectDetails/11-08-02/USVI-BVI http://www.census.gov/prod/cen2000/phc-4-vi.pdf

Table of Contents for the Digital Edition of IEEE Electrification Magazine - March 2015

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