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Scope of Work_Tech Specs Utility Scale Solar with Energy StorageThe City is seeking proposals for up to 5 MW of utility scale solar energy generation facility with co-located up to 0.99 MW energy storage device(s) with two (2) hour discharge capability as part of its plan to obtain a 100% renewable power supply capacity for its native electric load. The proposed facilities shall be located within the service territory of Denton Municipal Electric (DME) on a site currently owned by Denton. Quantities of less than 5 MW of solar generation capacity and 0.99 MW of storage capacity will be considered and may provide a better value proposition to the rate-payers of the City of Denton. The City of Denton will provide the land for construction of the proposed facilities and will enter into a lease agreement for term of the Power Purchase Agreement (PPA) between the winning bidder and Denton. Denton is interconnected with the Electric Reliability Council of Texas (ERCOT) and is considering various types of renewable technologies at locations within the ERCOT power grid. The City is seeking to establish a five (5) to fifteen (15) year PPA with the option to purchase the facilities in favor of Denton at the end of the term of the PPA. Under a PPA structure, Denton will purchase the energy, capacity, and environmental attributes from the renewable generation if offered. Requirements All Proposals must conform to the RFP requirements detailed below. Any Proposal not conforming to one or more of the RFP requirements may be eliminated from further consideration. 1. Product For the purposes of this RFP, “Unit Capacity” is defined as maximum net MW (ac) output, and includes capacity, energy, ancillary services and environmental attributes (including but not limited to renewable energy certificates) delivered from a specific new PV solar facility and integrated energy storage facility. 2. Structures Power Purchase Agreement (“PPA”): An Agreement that provides Denton the exclusive right to 100% of the net electrical output of the integrated facility from which such output will be delivered. The contract delivery term shall be a minimum of five (5) years and a maximum of fifteen (15) years. A land lease agreement with the integrated facility owner for the Denton owned property for the term of the PPA will be part of the PPA. Such PPA shall also provide Denton an option to acquire the facility’s assets on or after the end of the initial term and on or after the end of any extension terms. The purchase price offered for each facility purchase option shall be a fixed price stipulated in each respondent’s proposal to this RFP. Market based prices at the time of the option exercise period will not be considered. Respondents may provide multiple offers with varying capacities and terms. Each offer shall be provided in a detailed term sheet that will be the basis for negotiation of a final PPA. A sample term sheet with the minimum required information is provided as Exhibit F. Bidder to provide detailed description of transaction structure including property lease agreement, financing contingencies and conditions precedent, equity participation partners, credit support provide to City and detailed term sheet addressing term, extension term and conditions, and equity purchase option. Respondents are required to submit a draft Power Purchase Agreement for consideration. Maximum Capacity The net generation portion of the project should be capable of delivering up to five (5) MW of energy from the solar generation component and less than 0.99 MW from the storage component of the integrated facility. (Alternate lesser or greater sizes will be considered if proposed.) The integrated on-site storage facility should be capable of (i) storing up to 0.99 MW of energy and (ii) delivering its full contract capacity for two (2) consecutive hours. (Alternate lesser sizes will be considered if proposed.) Technology The project must utilize proven, commercialized energy storage technology that is scalable to the project size (i.e., not in experimental, research, demonstration or development stages), as determined in Denton’s sole discretion. (Whether or not a technology is considered proven and commercially available shall be determined in the City of Denton’s sole discretion.) Commercial Operating Date The project should have a commercial operating date (COD) of on or after June 1, 2021 but no later than June 1, 2023. A proposed development plan with identified milestones must be provided with the proposal. Interconnection The proposed project will be located within the DME control area with the solar generation project interconnected with the ERCOT 138 kV system when not charging the energy storage devices. The energy storage devices will be interconnected with the Denton 13.2 kV distribution system. Respondent will be responsible for all interconnection cost and requirements. Energy storage interconnection(s) will comply with DME requirements as specified in the DME Distributed Generation Manual. https://www.cityofdenton.com/CoD/media/City-of-Denton/DME/FY2020-DG-Manual-F inal_1.pdf Qualified Scheduling Entity DME will perform all required ERCOT Qualified Scheduling Entity (QSE) functions for the proposed project. However, respondents are responsible for all telemetry, hardware, software, control systems, etc. to enable DME to meet the ERCOT requirements for the proposed facility. Project Location Options/Land lease The proposed project will be permitted and constructed on property owned by Denton. Potential site location maps are provided in Schedule C of this RFP. Respondents may request site visits to evaluate the sites for their potential for constructability and permitting. Preliminary site plan showing the location of solar panels, inverters, energy storage and interconnection facilities is required with each proposal option offered. Proposal Content Introduction to Bidder Experience of bidder as developer of utility scale solar facilities Experience of bidder as developer and integrator of energy storage facilities Corporate structure including financial strength of bidder and/or financial backing of development a Ownership structure of project Facility description and design Solar panel technology – manufacturer, model number, warrantees, performance history, disposal method, operating and maintenance requirements, life expectancy and performance degradation. Battery technology – manufacturer, model number, warrantees, performance history, disposal method, operating and maintenance requirements, life expectancy and performance degradation. (See Schedule B) Configuration – provide a facility layout, one-line diagram, and integration with Denton activities associated with other on-site operations. Solar generation to be interconnected at the 138 kV level, battery to be interconnected at the 13.2 kV level. Safety considerations associated with Battery facilities and operations. Development Plan Respondent shall provide a development plan with key milestones including: financing, design; permitting; procurement and delivery of key equipment, site grading; construction, testing and commercial operations. Identification of key and critical milestones including those for which liquidated damages will be assessed. Transaction Structure and Proposed Commercial Terms Respondents will provide a description of each proposed option and the structure of the transaction. Respondents must provide a detailed term sheet for each option offered. The form of term sheet and minimum requirements is provide in Schedule A of this RFP. Each option shall include equity purchase option in favor of Denton. Energy Profile Respondent shall provide a Microsoft Excel file with the 8760 hour energy profile of expected generation output from the Facility.