Alternatively Financing Energy Projects Fort Campbell s Lessons Learned

Transcription

1 Session: Integrating Multiple Energy Projects Alternatively Financing Energy Projects Fort Campbell s Lessons Learned Rick McCoy, PE, CEM, PMP US Army, Fort Campbell, KY August 10, 2016 Rhode Island Convention Center Providence, Rhode Island

2 Fort Campbell s UESC Program Energy Conservation Measures Replace electric water heaters w/natural gas Lighting upgrades Controls Air Compressor upgrades Cooling Towers Variable Speed Drives Radiant Heat Ground Source Heat Pumps $54.5M executed to date providing annual savings of $6.8M! Buildings Surveyed ( Approx. 100 Buildings) 6900 Block 7000 Block 700 Block 3700 Block 4000 Block Concept ( Mixing Appropriations and Private Financing to Meet Federal Energy Management Goals, ORNL/TM 2012/235) Preliminary Survey Completed Age of Buildings, Age/Condition of Systems Joint Findings Review and Planning Package for UESC Financing Criteria ( Simple Payback<= 10 years) Package for DOE Partnership ( Efforts needed to bring building to 77 MBTU/KSF) Package for ECIP (Ground Source Heat Pumps New Work?) Develop Projects Present to UESC Board for Approval

3 Objective This presentation will step through one of Fort Campbell s most challenging projects. What makes this project so interesting is it included: UESC PPA State Grant FEMP Grant

4 Background In FY2012, Fort Campbell developed a renewable energy plan with the help of Oakridge National Laboratories The intention of the plan was to deliver enough utility grade renewable energy to meet goals while remaining cost effective and compliant with all energy and environmental laws.

5 Renewable Energy Plan Summary Fort Campbell s target was 20 MW Spelled out each component required Validated each potential component Painted picture of how each component connects to existing infrastructure

6 Renewable Plan Roadmap

7 Fort Campbell s Solar Array

8 Taking Advantage of an Opportunity On 18 December 2012, Pennyrile RECC received a $3.2M grant from the state of Kentucky to assist in Fort Campbell s pursuit of a 5MW solar array through the UESC This made it possible for 1.9MW of solar panels to be procured and installed through the UESC project The remaining 3.1MW was procured through at power purchasing agreement (PPA) In FY13, Fort Campbell received an $800k grant from DOE/FEMP to assist with the PPA procurement

9 5mW Solar Array Concept Map The footprint is a capped landfill that served no purpose to the Fort Campbell mission. 5MW Solar Array Field

10 Solar Economics The Installation in conjunction with Pennyrile Rural Electric Cooperative Corporation applied and was awarded a $3.1M Energy Efficiency/Renewable Energy grant from the State of Kentucky to build a 5MW Solar Array utilizing a UESC and a PPA. Procurement will be through a 10-year Utility Energy Service Contract (UESC) with Pennyrile. Pennyrile will utilize the $3.1M grant to pay for the entire Solar Array interconnection infrastructure and a 1.9MWDC solar array. 28-year Power Purchase Agreement (PPA) for a 3.1MWDC executed through the PPA MATOC Small Business Solar Pool using the same tariff as is being paid for conventional electricity. Estimated private capital investment for the project is approximately $9 M. The installation applied and was approved to receive an $800K grant from the Department of Energy which will be applied to the PPA contract at award. Life Cycle Cost Analysis Results: MILCON: EITF analysis estimates a $17.4 M budget would be necessary for Army to construct this project. Third Party PPA: Starting at the installations 2016 electricity rates, the developer would require an annual escalation rate of 3.7% versus the NTE of 1.8% this would yield a net present value loss of $4M for the Army.

11 Major Milestones December 2012, $3.2M grant received from state of Kentucky to assist with 1.9MW through UESC April 2013, validation received from EITF October 2013, $800k grant received from DOE/FEMP to assist with PPA October 2014, Present PPA to RGB October 2015, 1.9MW ribbon cutting (UESC) October 2016, 3.1MW ribbon cutting (PPA)

12 Fort Campbell Questions?