4 research outputs found

    Exploring a State-Tribal Partnership to Advance Energy Goals

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    This Technical Summary pertains to Report 2023-12, \u201cAssessing a Solar Project and a Virtual Power Purchase Agreement Between the Red Lake Nation and the Minnesota Department of Transportation,\u201d published March 2023. More information is available at mdl.mndot.gov.The Red Lake Nation is exploring the development of a solar project on tribal land. MnDOT has an opportunity to enter into a virtual power purchase agreement (VPPA) with the Red Lake Nation for the purchase of solar electricity. A VPPA is a unique contracting method in which the tribe would develop the project, produce the electricity and sell it into the wholesale energy market. MnDOT would pay a fixed price to purchase the energy and renewable energy credits, and would continue to buy power from the regional utility provider. When the market price is greater than MnDOT\u2019s fixed price, the tribe would pay MnDOT the difference. If the market price is lower, MnDOT would pay the tribe the difference. A VPPA would support the Red Lake Nation\u2019s sovereignty and further the government-to- government relationship, advance shared renewable energy goals and split economic value and risk between MnDOT and the tribe. MnDOT wanted to assess the feasibility of a renewable energy partnership with the Red Lake Nation

    Assessing a Solar Project and a Virtual Power Purchase Agreement Between the Red Lake Nation and the Minnesota Department of Transportation

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    (c) 1036342 (wo) 58In this report, we analyze the feasibility of a northern Minnesota solar project and accompanying Virtual Power Purchase Agreement (VPPA) between the Minnesota Department of Transportation (MnDOT) and the Red Lake Nation. We analyze three sets of benefits for MnDOT: government-to-government relations, environmental, and economic. In government-to-government relations, we find great potential for the VPPA to further a first-of-its-kind Tribal energy project and Tribal sovereignty. We also summarize lessons from other governmental entities in pursuing VPPAs. For environmental benefits, we find the array will avoid between 48,000 and 89,000 metric tons of carbon dioxide-equivalent gases, resulting in a monetized environmental value of between 1millionand1 million and 9.4 million in avoided emissions-related damages. Finally, for economic benefits while we find the array has a net present value (NPV) between a negative 5.5millionandnegative5.5 million and negative 16.5 million to MnDOT, we identify several project adjustments that could increase the value to more than a positive $3 million in NPV. In conclusion, we recommend MnDOT form a \u201cstrike team\u201d to develop the project further, communicate the project clearly, and consult with outside experts on further project opportunities
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