The proposed, solar-array project atop Marion’s capped landfill at Benson Brook, originally estimated to cost $880,000 to connect to Eversource, is now estimated to cost over $1,000,000. Other towns are reportedly in the same boat.
The Marion Energy Management Committee heard from Maria Marasco, executive director of the Cape & Vineyard Electric Cooperative, Incorporated, via Zoom during its January 22 meeting, and part of her message was that the interconnection costs for a solar array atop the Benson Brook landfill do not make the project worthwhile, at least as its business model is proposed.
Nonetheless, the CVEC recommends moving forward rather than starting over.
Marion is a member of CVEC, a government entity that makes no profit as such and acts on behalf of its members to ensure “sound, competitive renewable energy procurements.” The CVEC oversees projects from construction to operation and into management. The Town of Marion paid a one-time procurement fee for this project to cover the CVEC’s expenses.
Eversource, meanwhile, is said by municipal boards in the Tri-Towns to be taking stock of its entire capacity in light of the many municipalities applying for connections for proposed solar projects.
What has come out of CVEC’s review of the Benson Brook Landfill solar proposal is a recommendation that under a power-purchase agreement (PPA) in which the CVEC would collect power and resell it to Marion, the project becomes viable.
For every kilowatt hour of electricity generated, it was calculated that Eversource will pay out 24 cents, adding up to $260,000 per year out of which the town would have to pay the project developer. It was speculated that the developer might charge 18 cents, considered a conservative baseline.
If CVEC can convert the project to a PPA, the belief is that $60,000 can be earned in net cash from Eversource.
EMC member Alanna Nelson, as Marion’s representative to CVEC, planned to work on the matter over the next couple of weeks.
A “cash-out” project means Marion can put the money toward anything, including its General Fund but not in a potential solar project atop the Police Station. Marasco said it’s better for the town to enter a PPA.
The CVEC has yet to become owner of such a project. “It’s a whole, new wheelhouse of activity,” explained Marasco, noting that the CVEC is deliberating whether to get into solar ownership.
Elsewhere in town, a group study indicates that Marion needs upgrades to build new projects, but smaller projects (under 15kw) are doable.
Business projects, not residential, are in the CVEC’s wheelhouse. The CVEC is soliciting projects to put into their Round 7 cycle. The cooperative operates under a statute that allows it to bundle towns’ projects together, which eliminates some redundancies. The CVEC plans to issue another RFP (bid process) in the spring.
Marasco said the town should only have as many net-metering credits as its usage. Having them sitting on the books is not advantageous. The town had asked to pay one price over four installments that get project oversight. The CVEC will do an overview at no charge. Towns help each other by pooling their resources and have a broader range of competitive bidders.
In answer to a question from EMC member Bill Saltonstall, Marasco said, while she believes Marion is not in danger of exceeding the usage limits in its contract with Future Generation Wind, she will review the matter and confirm.
In response to EMC member Jennifer Francis’ question as to why not generate as big a project as possible, Marasco explained that the interconnection is only approved for 1,800,000 kwh per year. Individual projects are approved for a certain amount of capacity.
The “nameplate capacity” of the photo-voltaic project as originally proposed for the Benson Brook Landfill is 1,493kw. The approximate annual energy production is 1,807,451 kwh; the guaranteed annual energy production is 1,536,333 kwh.
This project will affect Marion’s capacity; the CVEC’s recommendation (and approval from town leadership) would send cash to the General Fund.
Town Administrator Geoff Gorman also participated in the meeting, and the CVEC planned to meet with Gorman and Nelson during the next couple of weeks following the meeting.
The next meeting of the Marion Energy Committee is scheduled for Monday, February 26, at 6:00 pm at the Police Station on Route 6.
Marion Energy Committee
By Mick Colageo