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112 Renewable energy projects at airports have received a wide amount of exposure in the public. When projects are announced, a press release is often sent out to various traditional and internet media sources to broadly advertise the project and its benefits. Another press release is issued when the ribbon cutting occurs and much of the same information related to expected benefits is communicated. There will be occasional reports at industry conferences about results but presentations often restate much of the projectâs messaging. Airport managers hear about the generalities of these projects but are left to conclude that they are unlikely to be economical at their airport. This chapter provides 21 case summaries of renewable energy projects that have been developed at airports over the past 5 years. The case summaries cover a variety of differ- ent renewable energy technologies developed at airports of differing sizes and geographies under different business structures and funding plans. Table 5-1 lists the case summaries presented. Each case study addresses a renewable energy technology and an ownership model. The tech- nologies and ownership structures represented are shown in Table 5-2. The information in the case summaries provides real world information for the concepts addressed in the previous chapters. It includes a variety of project types including projects owned by airports with funding by FAA and other sources; projects owned by third party developers where the airport is a landlord and receives a lease payment; and other cases where the airport purchases the electricity and acquires the environmental attributes. It discusses the role of municipal utilities. It describes the drivers behind individual projects. It includes lessons learned that share both good experiences that may be replicated and steps that should be reconsidered in the future. 5.1 Barnstable (HYA)âSolar PV Fast Facts â¢ Commissioned in 2015 â¢ Owned by private party â¢ Electricity purchased by CVEC for Airport and Town of Barnstable Project Scope The Barnstable Municipal Airport (HYA) hosts a 5.7 MW PV ground mounted system on approximately 22 acres of land at two separate site locations north of the airport runways (see C H A P T E R 5 Case Summaries
Case Summaries 113 Aerial view of ground-mounted solar project at Barnstable Municipal Airport; John Faltings, G&S Solar. 1 Barnstable (HYA) MA Solar PV Third Party 2 Boston â Logan (BOS) MA Solar PV Third Party 3 Boston â Logan (BOS) MA Wind Airport 4 Brainerd Lakes (BRD) MN Solar Thermal Airport 5 Burlington (BTV) VT Wind Tenant 6 Chicago-Rockford (RFD) IL Solar PV Third Party 7 Denver (DEN) CO Solar PV Third Party 8 East Midlands (EMA) United Kingdom Wind Airport 9 Grant County (JDA) OR Biomass Airport 10 Indianapolis (IND) IN Solar PV Third Party 11 Juneau (JNU) AK Geothermal Airport 12 Lakeland (LAL) FL Solar PV Third Party 13 Nantucket (ACK) MA Geothermal Airport 14 Outagamie (ATW) WI Solar PV, Thermal, Geothermal Airport 15 Portland (PWM) ME Geothermal Airport 16 Redding (RDD) CA Solar PV Airport 17 San Diego (SAN) CA Solar PV Tenant 18 San Diego (SAN) CA Solar PV Third Party 19 Toronto â Pearson (YYZ) Canada Solar Thermal Airport 20 Tucson (TUS) AZ Solar PV Airport 21 University Park (UNV) PA Geothermal Airport Airport OwnershipRenewable Energy Technology State/Country Table 5-1. Renewable energy case summaries.
114 Renewable Energy as an Airport Revenue Source Figure 5-1). A third site with a 0.93 MW array is on four acres of land owned by the Barnstable Fire District but is managed by the airport as part of the airfield. The airport project is expected to gen- erate 6,830,790 kWh per year of electricity, which is equivalent to power approximately 648 homes annually in the Cape Cod region. The project was installed in 2015 and is owned and operated by a private solar developer, G&S Solar. The Cape and Vineyard Electric Cooperative (CVEC) pur- chases the electricity through a 20-year power purchase agreement on behalf of its members, the 18 municipalities of Cape Cod and Marthaâs Vineyard as well as Barnstable and Dukeâs Counties. Decision-Making Process The airport was evaluating potential opportunities to expand its revenue base from non-traditional sources such as concessions, parking, airline fees, etc. The Massachusetts Type Symbol Renewable Energy Technology Solar (PV and Thermal) Wind (Utility-scale and Built- environment) Geothermal Heat Pump Biomass Ownership Airport Third-Party Table 5-2. Technologies and ownership models represented in case summaries.
Case Summaries 115 Solar Renewable Energy Certificate (SREC) program provided incentives for the develop- ment of large-scale solar PV projects in the state. CVEC played a unique role as it can develop and purchase renewable energy for municipalities on Cape Cod and the Islands, aggregating the electricity buyer that private developers need to finance their projects. The project required the strong coordination of CVEC to execute agreements among all the par- ties and to facilitate project permitting. Among a variety of permitting requirements, the airport had to file a formal release of aeronautical land for non-aeronautical purposes with the FAA, which was posted in the Federal Register for public comment before the project could be approved. Financials Electricity generated by the facility is purchased by CVEC for a flat, fixed price of $0.0725/kWh over the 20 year contract term. The value of the land lease with G&S is incorporated into the price of electricity paid by the airport. The airport and the Town of Barnstable will benefit from the state incentivized Net Metering Credits delivered in exchange for the renewable electricity, which will dynamically lower airport and town electrical costs. By hosting the solar project through the PPA and by benefitting from the associated Net Metering Credits, the project is expected to reduce the airportâs electricity cost by 17% annually and provide approximately $5 million in revenue over the next 20 years. In addition to the revenue, the airport is expected to save approxi- mately $119,197 in electricity costs during the first year. The project is also expected to provide benefits to G&S Solar from financial incentives offered by federal tax credits and Massachusetts renewable energy incentives. Lessons Learned The project was delayed by FAA through the 7460 review process due to concern about glint and glare experienced at other airport solar projects. Glare studies were undertaken with Figure 5-1. HYA leased land that was not accessible for future aeronautical uses.
116 Renewable Energy as an Airport Revenue Source Customer demand for renewable energy on Cape Cod enabled the CVEC to execute a long-term contract for power which financed the solar project. 5.2 Boston (BOS)âSolar PV Fast Facts â¢ Commissioned in 2012 â¢ Installed on first LEED terminal in the U.S. â¢ Owned by private party Project Scope Solar panels mounted on the roof of Terminal A at Boston Logan International Airport; Dan OâBrien, Solar Dock. The project consists of a 367 kW solar project on two buildings: 274 kW on Terminal A and 93 kW on the Terminal A satellite (Figure 5-2). The facilities generate approximately 475,000 kWh per year with all of the electricity generated consumed in the buildings. The facility is owned by a private party and the Massachusetts Port Authority (Massport) pur- chases the electricity. The arrangement is governed by a PPA and site license agreement whereby Massport has agreed to purchase all of the electricity generated by the PV facility at a stated price per kWh that increases annually by a fixed percentage, and the developer agrees to deliver a minimum guaranteed amount of electricity. Under the site license, Mass- port granted the developer the right to locate, access and maintain a PV facility on the roofs of the two buildings for a term of 20 years, subject to certain conditions. There is no license fee payable by the developer, which is permissible under federal law, as Massport is purchas- ing the entire output for airport purposes. The developer holds title to the PV facility and to resulting adjustments to the solar arrays, resolving those issues, and the project received a no hazard determination from FAA.
Case Summaries 117 all tax credits and environmental attributes, including without limitation, RECs. Massport has the right to purchase the facility after the initial 6 years of operation, and each 5 years thereafter and at the end of the term for the greater of the stated termination price and fair market value. Decision-Making Process In 2010, the Massachusetts Department of Energy Resources (DOER) sought public building sites to support the installation of solar by private partners using incentives available from the American Recovery and Reinvestment Act (ARRA) to buy down construction costs. Massport agreed to partner with DOER and issued a RFP for a project on Terminal A that specified the minimum kilowatt hours of electricity it must generate. As the first airport terminal in the United States to be certified under the U.S. Green Building Councilâs LEED Program, Terminal A was a Figure 5-2. Solar and wind projects at Logan Airport.
118 Renewable Energy as an Airport Revenue Source logical site for the array at Logan. Massportâs goal was to obtain a predictable flow of renewable energy at a cost lower than the expected market price for electricity. Ameresco was selected to develop the project. Each party was incentivized by the ARRA grant, which made the project more economically viable. Financials The ARRA grant for $170,000 reduced Amerescoâs cost to construct and the PPA rate it needed to make the project financially viable. Massport is able to purchase the power from the solar system at a discount. Lessons Learned The PV facility commenced operation in 2011 and since then has provided approximately 1% of the electricity used by Terminal A at a cost per kWh that is lower than the average cost per kWh from commercial sources. Although many provisions in the agreement are standard for any PPA for a renewable energy project, other important provisions, such as those that subordinate the agreement to Massportâs obligations under federal law or that incorporate Massportâs standard on-airport construction requirements, were important additions to ensure that Massport would continue to comply with relevant provisions of federal aviation law while also clearly allocating the relevant risks and responsibilities between Massport, as power purchaser and owner of the buildings upon which the PV facility would be located, and the developer, as owner and operator of the PV facility. 5.3 Boston (BOS)âWind Fast Facts â¢ Commissioned in 2008 â¢ First wind turbine generators at an airport in the United States â¢ Provides on-site power to administrative offices Project Scope Building integrated wind turbines mounted on Massport office building at Boston Logan International Airport; Massachusetts Port Authority.
Case Summaries 119 Massport installed 20 roof mounted wind turbines at Logan International Airportâs Office Center in July 2008. Boston Logan is the first commercial airport to generate clean energy using environmentally friendly wind turbines. Unlike the large utility-scale wind turbines that rise up 100 feet or more above the ground, making them incompatible with airports, these wind turbines attach to existing structures, which fits better with the built environment. Each turbine is 10 feet tall and has a nameplate rated capacity of 1 kW, allowing Logan to tap into the steady winds along Bostonâs waterfront. The wind turbines deployed utilize a unique design to allow them to capture air flow from building aerodynamics even in low-wind conditions. The project was funded by Massport, which consulted with local company Groom Energy Solutions and the turbine manufacturer Aerovironment. Decision-Making Process Massport is proactive in exceeding regulatory requirements to reduce the environmental impact of its operations and has developed Sustainable Design Guidelines and Standards to direct its sustainable development. It is with this philosophy that Massport evaluated the oppor- tunity to deploy building-integrated wind turbines on the roof of its office building at Logan. Massport recognized that the proposed wind turbines were new technology and the installation would represent a demonstration of that technology. The design of the Aerovironment wind turbines also provided an architectural aesthetic to the building with visual benefits beyond its electricity generation capacity. Massport weighed the benefits and costs of the opportunity and determined the project to be on-balance a good one for demonstrating its commitment to renewable energy sources and providing data on a new technology. Financials Massport self-funded the project which cost about $140,000. Over a 3 year period (2011â 2014), the annual output of the facility was 8,616 kWh. Massport recognized from the start that the project purpose is to demonstrate new technology and its environmental commitment, and therefore a payback analysis is not appropriate. Lessons Learned The turbines were forecast to generate 1,667 kWh of electricity each month or just 2% of the buildingâs peak demand. Actual performance has been about 43% of what was predicted. However, Massport recognized in developing the project that it was deploying new technol- ogy and that the electricity generation would supplement what was provided from the grid. Its performance varies seasonally with fluctuating wind conditions. Its best production has been in the winter as demonstrated in January 2014 when the system produced double its forecasted capacity. Overall, the project has been a success because the wind turbines have been widely recog- nized and are an important symbol of Massportâs commitment to sustainability and renew- able energy. The project has also contributed important information on the performance of building-integrated wind turbines. Massportâs leadership in deploying these wind turbines was followed by several other airports, notably Minneapolis-St. Paul and Honolulu, in install- ing Aerovironment wind turbines on their buildings which continues to increase awareness of renewable energy among the flying public.
120 Renewable Energy as an Airport Revenue Source 5.4 Brainerd Lakes (BRD)âSolar Thermal Fast Facts â¢ Commissioned in 2012 â¢ Thermal air heating system â¢ Funded by state and federal grants Project Scope Solar thermal panels located on outside hangar wall at Brainerd Lakes Regional Airport; Rural Renewable Energy Alliance (RREAL). The Rural Renewable Energy Alliance (RREAL) approached Brainerd Lakes Regional Airport (BRD) together with the Region Five Development Commission that serves five counties in Min- nesota, to assess the potential of the Airport as a site for solar thermal heating as part of a mission to promote solar energy usage in Minnesota. The assessment determined that the airportâs vehicle storage building would be a good candidate for solar thermal heating to replace propane heating. The project involved an installation period of two and a half days. RREAL installed nine 4â² by 10â² solar collection panels on the side of the building, with supply ducts to distribute the heat in the building, forced by means of a 14â³ fan. RREAL also installed a monitoring system and collects data to track the performance of the system output and reliability. Ongoing maintenance costs were projected to be minimal, since the system was using off the shelf HVAC components. Decision-Making Process RREAL coordinated development and installation of the project, and it was paid for from grants from several Minnesota organizations involved in encouraging the development of renewable energy and energy efficiency projects in the state, including RREAL, the Initiative Foundation, the Region Five Development Commission, Clean Energy Resource Teams (CERTS, associated with the University of Minnesota) and the U.S. Department of Agriculture (USDA). Financials The installed system cost was $23,468. The feasibility study estimated that the project would save the airport approximately 500 gallons of propane each winter for heating the vehicle storage building. With an average propane cost of $2 per gallon, the simple payback analysis for the sys- tem is 14 years with the systemâs useful life being 30 years. Actual savings are difficult to predict as they are correlated to the price paid in the future for propane. RREAL prepares annual reports on the performance of the system and actual cost savings. In its first (partial) year of operation, the airport saved about 208 gallons of propane from FebruaryâMay 2012, about on track with
Case Summaries 121 expectations for the shortened heating season during which the project was online. During the winter of 2012â2013, the system saved 527.8 gallons of propane, equal to an avoided cost of propane of $1,389. In the winter of 2013â14, the avoided propane was 428 gallons and the cost savings was $1,039. As shown in Figure 5-3, price spikes can dramatically increase avoided costs and also demonstrate the price stabilization benefits that renewable energy provides in avoiding price volatility of fossil fuels. Lessons Learned While not initiated by the airport itself, the airport was able to construct this solar thermal project and achieve savings by accessing a variety of resources available in the State of Minnesota to fund renewable energy and energy efficiency projects. RREAL, the Region Five Development Commission, the Minnesota Department of Commerce and the other organizations communi- cate and coordinate regularly on renewable energy and energy efficiency projects in Minnesota, a paradigm that some other states also have in place. Airports, particularly those located in more rural areas, may be able to access state and local grants for initial planning, as well as some or all of the construction costs of smaller renewable energy and energy efficiency projects that can have a tremendous positive impact on longer term operating costs. Source: U.S. Energy Information Administration Figure 5-3. Cost of propane in Minnesota and negative financial consequences of price spikes. Solar thermal and biomass represent opportunities for airports to make their heating source renewable.
122 Renewable Energy as an Airport Revenue Source 5.5 Burlington (BTV)âWind Fast Facts â¢ Commissioned in 2010 â¢ First utility-scale wind turbine at an airport in the United States â¢ Owned and operated by FBO Project Scope Utility-scale wind turbine at Heritage Aviation, Burlington International Airport; Christopher Hill, Heritage Aviation. Burlington International Airport (BTV) is home to the first utility-scale wind turbine at an airport in the United States. The turbine is owned and operated by Heritage Aviation, a FBO at BTV. The wind turbine is a Northwind 100, a 100kW wind turbine manufactured by Northern Power of Barre, VT. It generated approximately 175,000 kilowatt hours in 2013, which is enough electricity to power approximately 15 homes and provides approximately 15% of Heritage Avia- tionâs electricity needs. Decision-Making Process Heritage Aviation sought to develop a green FBO terminal at BTV. In identifying renew- able energy opportunities, it prescribed solar PV on the roof but determined that more renewable electricity could be generated through a utility-scale wind turbine. They worked with Northern Power Systems, an established local wind energy company to determine how this could be accomplished at an airport. The hangar and energy systems were constructed in 2010 and the building was certified by the U.S. Green Building Council under its LEED at the gold level. The construction and permitting of the wind turbine was the responsibility of Heritage, though the airport did cooperate, as needed, in securing FAA and power company approvals. Financials It is estimated that the wind turbine off-sets about $13,000 in electricity costs annually. The airport does not use any of the electricity produced nor does it receive any additional compen- sation or lease payments. At the end of the property lease the turbine would become an airport asset since it is considered an improvement that would revert to the airport.
Case Summaries 123 Lessons Learned This project is an example of a tenant owned renewable energy facility. The airport worked with a tenant to construct and implement green energy programs. The benefits to the airport are primarily non-financial including fostering stakeholder goodwill and improving the value of the leasehold improvements at no cost to the airport. 5.6 Chicago-Rockford (RFD)âSolar PV Fast Facts â¢ Commissioned in 2010 â¢ Project located adjacent to RPZ â¢ Owned by private party Project Scope Ground-mounted solar project near approach to Runway 1, Chicago Rockford International Airport; Brian Welker, Crawford, Murphy & Tilly. Rockford Solar Partners (RSP) currently operates a 3.0 MW PV ground mounted project on 15-acres of land near the approach area to Runway 1 on the south side of the airport. The 3.0 MW project is Phase I of a much larger project anticipated at up to 62 MW. Phase I is expected to generate enough electricity to power up to 400 homes while the full build-out of 62 MW could generate enough electricity to power up to 6,900 homes. The project is owned by Rockford Solar Partners (RSP) which is composed of Elgin-based Wanxiang America and Chicago-based New Generation Power. Wanxiang America is a solar manufacturer and sup- plied panels for the initial phase of the project. The airport land is leased from the Greater Rockford Airport Authority (GRAA) by the City of Rockford who in turn leases it to RSP. Decision-Making Process After a comprehensive siting process, Wanxiang America selected a site in the City of Rock- ford, IL for establishment of a solar PV manufacturing facility. RSP worked with the City of Rockford to utilize available federal grants under the ARRA for the development of a solar project to help demonstrate the benefits of solar energy and in support of the city and airportâs commitment to sustainability. During the initial site selection process, the airport and city had identified an on-airport parcel located that was considered low value and not conducive for
124 Renewable Energy as an Airport Revenue Source future aeronautical, industrial or commercial development, but potentially suitable for a utility- scale solar farm. In consultation with the FAA, GRAA obtained concurrent use approval for non-aviation use of the parcel. As a condition of the approval, FAA required that FMV also be derived from leasing the land to the developer. Financials The airport was able to establish a land lease value of $160/acre based on guidance provided in 2011 Illinois Farmland Values and Lease Trends prepared by the Illinois Society of Professional Farm Managers and Rural Appraisers. The FAA agreed with request for a concurrent use, which allows for the use of dedicated airport property for a compatible non-aeronautical use while serving the primary purpose for which it was acquired, which was protection of the land from aeronautical obstructions. The City of Rockford leases the land from the GRAA for $11,200 a year. RSP was awarded a $4 million grant from the Illinois Department of Commerce and Economic Opportunity (DCEO) with funds originating from the U.S. Department of Energy through ARRA to decrease project cost and price of electricity generated. RSP executed a 20-year PPA with Ameren Illinois to purchase the power and the Renewable Energy Credits under the Illinois Power Agencyâs long-term renewable energy procurement program. The purchase helps Ameren meet its obligations under the state RPS. Lessons Learned Given that the 3.0 MW project is located near the approach area to Runway 1 as shown in Figure 5-4, this is an example of the necessity of early planning with FAA. The central issue that Source: Exhibit, Brian Welker, Crawford, Murphy & Tilly Figure 5-4. Footprint of Rockford Airport solar array relative to the RPZ and MALSR.
Case Summaries 125 FAA had for this project was to ensure that glint and glare issues will not affect sensitive recep- tors such as the ATCT and pilots on approach, and the project will not impact navigational aids, cause communication interference or have other aeronautical impacts. Additionally, as a proposed on-airport solar facility requires federal action through the FAA, early consultation with the FAA on required NEPA approvals and process was needed. 5.7 Denver (DEN)âSolar PV Fast Facts â¢ Developed four separate solar PV projects â¢ All third party owned, airport buys power â¢ Each one has produced successively cheaper electricity tracking the solar market Project Scope Four solar projects located at Denver International Airport. Denver International Airport (DIA) has been at the forefront of developing on-airport solar PV facilities. It currently has four projects over 55 acres totaling 10 MW and the design generating capac- ity is 16.1 million kilowatt hours, enough electricity to power roughly 2,580 Denver residences. The solar facilities are each owned and operated by a private, third party who leases land from the airport. The airport purchases all power generated from each array through a PPA. Any excess power gener- ated not used by the airport is sold to Xcel Energy, the airportâs electric service provider. The RECs are sold by the third party facility owners directly to the utility, Xcel, through a long-term contract. Decision-Making Process Given Denverâs ample acreage and the airportâs strategic and sustainability goals, the airport was very interested in developing renewable energy projects such as solar power. A main finan- cial driver was the opportunity to sell RECs to Xcel Energy under its Solar Rewards Program
126 Renewable Energy as an Airport Revenue Source that provides an incremental funding stream in addition to the market price of electricity. For each project, the third party owner in cooperation with the airport responded to an Xcel RFP to purchase RECs from the project. Financials The project financing is structured around two contracts with the third party owner of each facil- ity: one for the power, and one for the RECs. DIA buys the power from each array owner through a long-term power purchase agreement or PPA at a specific electricity rate as summarized in Table 5-3. The prices for each project reflect the dramatic decrease in solar energy costs between 2008 and 2014. Xcel Energyâs regulations require that arrays be placed behind an existing meter and can only offset usage at tariff rates for that meter; the excess electricity is sold through net-metering to the grid for which the airport receives a payment at the AHIC. Solar II serves the Airportâs Fuel Storage and Distribution Facility; the production is closely balanced to the annual usage and thus mostly offsets energy tariff. However, most of the electricity produced by Solar I, III, and IV is in excess of usage of the associated meter and is sold to Xcel by DIA at AHIC. The amount of excess power produced combined with the unpredictability of the AHIC rate (which is cal- culated retrospectively) and the method for offsetting the electricity charges at the Airportâs regular retail rate (which is done at 15 minute intervals in which the peak demand rate occurs) makes it difficult to accurately predict rates for comparative purposes. Xcel purchases the RECs through a separate long-term contract with the facility owner. Under Coloradoâs Renewable Energy Standard (RES), investor-owned utilities (like Xcel) must procure and distribute a percentage of all electricity from renewable source with a requirement to meet a threshold of 30% by 2020. They do so either by building new renewable energy projects or pur- chasing RECs from third parties. For each of the Denver Airport solar projects, the third party owner submitted a proposal in cooperation with DIA to Xcel under its Solar*Rewards program. Upon selection, Xcel provided a rebate to offset the upfront construction costs and entered into a contract to purchase the RECs at the price proposed. Xcel then owns and retires the RECs to satisfy its obligations under the RES. The airport also receives a nominal lease payment per acre for the land occupied by the solar panels ($340.21 per acre for the 12 acre Solar IV Project). Because much of the airportâs financial stake is associated with the price of electricity contained in the PPA, the ground lease payment is a matter of compliance. Furthermore, the airport also loaned the development company $4 million for Solar II at low interest rates to further minimize the cost of the electricity. Lessons Learned The potential lessons learned from the Denver projects are both technical and financial. From a technical perspective simpler may be better and cheaper. Solar I is a single-axis tracking system I Fixed rate of $0.06 per KW for the first 5 years increasing to $0.1075 with an annual 3% escalator thereafter through the 25 year life of the contract 2008 II 90% of Xcel Tariff or $0.037 per KW, whichever is greater 2010 III Tariff price with a floor price of $0.036 per KW 2011 IV Based on Xcelâs annual âaverage hourly incremental costâ (AHIC) with a floor price of $0.017/kWh. 2014 The AHIC is determined retrospectively and is different than the customerâs retail tariff rate; AHIC exhibits greater variability than tariff and in recent years it has been lower than tariff. Table 5-3. Summary of specific electricity rates.
Case Summaries 127 that allows the panels to turn towards the sun during day with the benefit of increasing electri- cal production. Due to the local clay soil conditions, the system required deep drilled piers that added to the system costs. Further, the tracking system has experienced hydraulic and other operational problems that impacted system production. Airport officials note that despite these problems solar industry sources have noted that newer tracking models may not experience the same issues that have affected Denverâs system. With respect to finances, large electrical consumers would benefit from a change in Coloradoâs prohibition of virtual net metering, which would allow a multi-meter property owner to aggregate meters as opposed to associating an array behind a specific meter. In addition, basing excess power sales on the highly variable AHIC rates (which are calculated by the utility retrospectively based on the utilityâs actual cost for incremental purchases of electricity) makes calculating financial projections difficult at best. The price of electricity paid for each of Denverâs four projects shows how the cost of solar PV has dropped dramatically since 2008 as the industry and the market have matured. 5.8 East Midlands (EMA)âWind Fast Facts â¢ Commissioned in March 2011 â¢ Largest wind project at an airport in the world â¢ Provides 6% of terminal electricity needs Project Scope Utility-scale wind project at East Midlands Airport in the UK; Manchester Airports Group.
128 Renewable Energy as an Airport Revenue Source As part of East Midlands Airportâs (EMA) commitment to carbon-reduction measures, the air- port installed two utility-scale large wind turbines in March 2011. This is a rather unique project in that height of the turbine is approximately 150 feet tall and can potentially cause airspace and safety concerns for aircraft. The airport conducted a variety of analyses to address such issues over a 3 year period including (1) obstacle limits; (2) wake and turbulence effects; and (3) effects on airport radar and communication systems. The project was entirely funded by East Midlands Airport with no grants. The installation consists of two Wind Technik Nords (WTN 250) turbines, each with a nameplate rating of 250kW, a hub height of 30 meters above ground level and blade diameter of 30 meters. The turbines have been operating for over 3 years and the production has met or surpassed the initial estimates of electrical generation. In FY 2013, the turbines generated 563 MWh of electricity, or 6% of the airport companyâs electrical demand (excluding tenant elec- tricity use) which reduced the airportâs gross carbon emissions by 251 tonnes CO2e pa (carbon dioxide equivalent). Decision-Making Process EMA is part of the Manchester Airports Group (MAG) and is committed to reducing carbon emissions from its ground operations through a variety of methods. Evaluating and installing renewable energy technologies at the airport is a key component toward that goal. The airport is always evaluating renewable technologies such as solar, biomass, biomass feedstock, and electric vehicles to reduce CO2 emissions. Since the airport is located on a bluff where wind speeds are generally higher compared to locations below the bluff, wind turbines were a natural fit for the airport. The economics of the project were evaluated by the turbine size and potential genera- tion based on estimated wind speeds, electrical usage, and costs as well as the feed in tariff (FIT) price. FIT payments are paid to generators of renewable energy by the UK Government and are based on the type and scale of the renewable technology installed. Without the FIT incentive, the project would have had a much lower ROI and the business case for the project would have been less attractive. Financials The cost of the project was Â£1.2 million (British), which is approximately equivalent to $1.97 million (U.S.). The estimated annual rate of return of the project is 11%. Lessons Learned The project has been a success, with minimal objections from surrounding communities and the airport is pleasantly surprised with the results so much so that East Midlands is evaluating two additional wind turbines in the future. The airport has also developed an education area called the Aerozone where students can learn more about the wind turbines, renewable energy and other projects currently employed by the airport to reduce carbon emissions. The Aerozone has been very successful and receives up to 5,000 visitors per year.
Case Summaries 129 5.9 Grant County (JDA)âBiomass Fast Facts â¢ Commissioned in September 2010 â¢ Part of LEED certified terminal â¢ Heats half of the terminalâs needs Project Scope Feedstock storage bin for biomass facility at Grant County Regional Airport; Patrick Bentz, Grant County Regional Airport. JDA built, in conjunction with and support from the U.S. Forest Service, a new airport terminal building equipped with a biomass boiler. Biomass was included as part of the buildingâs green design, which meets the requirements of the U.S. Green Building Councilâs LEED Programâs silver certification level. The biomass system burns wood pellets provided by a local mill and provides about 50% of the buildingâs heating load. Financials The added cost for installing the biomass boiler over a convention boiler was $225,000. The annual cost for wood pellet fuel is $3,500. Annual operations and maintenance costs for the system are $500. Subtracting those costs out, the annual savings for the system is $7,520. The project would pay for itself in 30 years, assuming the savings remain constant. Decision-Making Process Prior to 2010, Grant County Airport administered the airport from a residential home on the site built in the 1940âs. The airport is an important staging point for the USDA forest fire fight- ing activities that had been run out of several modular buildings. The USDA decided to help the airport construct a new building and it executed a 15-year lease with the county as part of its com- mitment. However, one of the USDAâs design requirements was that the building be designed to meet LEED silver certification. Biomass was a logical design component given the close proximity of a wood pellet mill for both cost effectiveness and local economic development purposes. The county and USDA pitched the project to a number of state and federal agencies including the Oregon Department of Transportation and the FAA which provided the bulk of the funding for
130 Renewable Energy as an Airport Revenue Source the terminal building. The USDA provided funding for the building as well, but also issued a grant for the biomass project under its Rural Development Grant Program. Lessons Learned While the economics of this project example are not particularly strong, it offers a model that may be repeatable that would show stronger financial benefit. Because the system was sized to support only half of the buildingâs heating capacity, the amount of savings was limited. Were a full system built, payback would have been a more manageable 15 years. In addition, local electricity costs in Oregon are relatively low and therefore savings of biomass heat compared to electricity will be lower per kilowatt hour than in other regions of the country with higher heating costs. Biomass could be a cost-effective alternative to oil, gas, or propane for small airports looking to upgrade their heating system. 5.10 Indianapolis International Airport (IND)âSolar PV Fast Facts â¢ Phase I commissioned October 2013; Phase II commissioned in December 2014 â¢ Airport leases the land to a third party â¢ Power and RECs sold to the utility Project Scope Aerial view of Phase I and II of the ground-mounted solar project at Indianapolis International Airport. The solar farm at the IND is the largest on any airport in the world. The project covers 162 acres of airport land and has a nameplate capacity of 22 MW. It produces 31.7 million kWh of electricity annuallyâenough to power 3,210 homes. The facility was constructed and is owned and operated by a third party private entity that holds a long-term land lease with the airport. The electricity generated by the solar farm is fed into the electric grid and the Indianapolis Power & Light (IP&L) purchases the power and renewable energy credits. The project was implemented
Case Summaries 131 in two phases with the first phase using a fixed panel system commissioned in October 2013, and the second phase with single axis tracking system commissioned in December 2014. Decision-Making Process The IP&L solicited bids to purchase renewable energy from projects generated in its service territory. The Indianapolis Airport Authority (IAA) was approached by private developers to host such a facility in support of a bid to IP&L. The IAA had a considerable amount of land that was not being used for aviation purposes that could generate lease revenue, create construction and permanent jobs, and put some of the property tax-exempt land owned by the airport back on the tax rolls with property taxes being paid by the projectâs private owner. The IAA initiated an RFP process in July 2011, offering to lease land for 30 years at the airport for solar development as a way to generate revenues without assuming any of the risks of owning the project, while further enhancing the airportâs reputation for environmental awareness. The project was awarded to a local development group co-headed by Telamon and Johnson Melloh Solutions which later teamed with a large Taiwanese solar panel manufacturing companyâs U.S. subsidiary, GES USA, to provide the panels and own the project. Following award, the develop- ers needed to seek approval for the project from the Indiana Utility Regulatory Commission (IURC) and negotiate a 15 year PPA with IP&L. Financials The IAA acts as a landlord for the facility and receives an annual lease payment of approxi- mately $250,000 for the term of the land lease. It was also necessary for the developers to obtain a PPA from the IP&L, which provides the long-term revenue stream to support project financing. Lessons Learned The most important lessons learned from the solar project development relate to appropri- ate risk sharing between the public and private sectors, and the awareness that public officials must have of the complicated network of participants involved in the development, regulatory approval, design, and construction process for a renewable energy project. In this case, the IAA made a decision prior to issuing the RFP that its most advantageous role was to act as landlord and facilitate the process, but not share in any of the financial risks of the project. This enabled the IAA to focus on making sure that its basic missionârunning an airportâwas not going to be impaired by the location of the solar project on its land and the construction process, leaving the IAA more in the role of monitor and reviewer, rather than active participant, in the develop- ment issues. In addition, it did not provide any financial guarantees for the project, or agree to purchase any of the power, so its financial risk was limited to revenues foregone if the project was never completed. The other important factor leading to the success of this project was that the IAA actively cooperated with the developers during the development process as issues arose. The developer needed to go back to the IURC and IP&L multiple times to negotiate and receive regulatory approval for changes to the initial contracts; without these changes, it would have been impos- sible for the project to be financed. For example, the initial term of the IP&L power purchase agreement need to be extended from 10 to 15 years in order to make the project economics work. By maintaining flexibility and patience, the IAA enables developers to successfully complete their required approvals and negotiations, and proceed with construction.
132 Renewable Energy as an Airport Revenue Source 5.11 Juneau (JNU)âGeothermal Heat Pump Fast Facts â¢ Commissioned in May 2011 â¢ Supplies heating/cooling to terminal and heats walkway at terminal entrance â¢ Cost savings estimated at $125,000 annually Project Scope Installation of ground loop components of geothermal system at Juneau International Airport; City of Juneau. The City of Juneau constructed a geothermal heating and cooling system as part of a major terminal renovation and expansion project. The system consists of 108 vertical borings 350 feet deep and 31 electric heat pumps. A liquid comprised of 88% water and 12% methane circulates through the closed loop system of HDPE piping that is 16 miles in length. The system not only provides heating and cooling to the terminal building but also runs under the sidewalk at the front of the terminal keeping it free of snow and ice. Decision-Making Process The airport was interested in options for designing and constructing a modern terminal. It allocated $40,000 to study the development of the ground source heat pump system. The feasi- bility study concluded that a ground source heat pump system would have a lower life cycle cost than a traditional HVAC system. Since funds could only be obtained to support construction of a portion of the entire buildingâs heating and cooling system, half of the building is powered by diesel boilers until it can be replaced with a new system. Given the lack of regional experience with geothermal construction, it was decided to bid the wellfield part of the project separately from the building interior HVAC system. The wellfield was bid with a second project at the Dimond Aquatic Center to attract broader bidding interest which improved the economies of scale. Financials The City was awarded a grant of $513,000 for the project from the Alaska Energy Authority which paid for about 50% of the total geothermal project cost. The analysis of fuel costs when comparing 2008 to 2011 determined that the geothermal system saved the airport $130,519 in avoided diesel costs. The added electricity costs between 2011 and 2008 were determined to be $15,544 which also accounted for the increase in building size of 16,000 sf after renovations
Case Summaries 133 were completed, resulting in an annual costs savings of $114,985. It was also calculated that the avoided labor and equipment cost necessary to keep the front of the terminal free of snow was estimated to be $11,000 for a total savings of $125,985. Lessons Learned System performance has been difficult to measure given that the system is designed for half of the building with the other half served by traditional systems. Performance data has been reported for year 2011 as the first year the system was operational. This has been compared with calendar 2008 before the new system was installed and terminal renovation and expansion were undertaken. While heating and cooling demand from outside sources decreases with the geo- thermal system, electricity use actually increases due to the demand from the geothermal pumps. Therefore, the cost increases in electricity must be subtracted from the cost savings of the heating and cooling to evaluate the net change. 5.12 Lakeland Linder Field (LAL)âSolar PV Fast Facts â¢ Commissioned October 2012 â¢ Owned and operated by a third party â¢ Municipal electric company purchases power and credits airport electric bill Project Scope Aerial view of ground-mounted solar project at Lakeland Regional Airport; Brett Fay, Lakeland Linder Field. LAL is host to one of the largest solar PV facilities at an airport in the United States and it will soon get bigger. The facility now operating has a nameplate rating of 6 MW, which generated approximately 11 million kWh in 2013, enough electricity to power 2,100 homes. It was con- structed in two phases, occupying 43 acres of airport land, by a private third party, SunEdison, near the end of runway 9â27 including a portion of the RPZ (see Figure 5-5). The airport acts as a host to the facility and collects annual compensation as part of a ground lease agreement. The electricity generated by the facility is purchased through a PPA by the Lakeland Electric Company (LEC), a municipal utility, to provide the citizens of Lakeland with a renewable energy product. In March 2015, the City Commission approved Phase III of the project which will add
134 Renewable Energy as an Airport Revenue Source 4 MW on 31 acres of land recently acquired by the airport with funding from the Florida Depart- ment of Transportation. Decision-Making Process The City of Lakeland determined that it would seek to have a solar facility built on town property to make an investment in renewable energy. The LEC, which already owns two fossil- fuel powered generation plants and is responsible for providing the residents of Lakeland with power, was directed to assess city property suitable to host a solar facility. LEC initially adver- tised an RFP to select a third party developer who would build, own, and operate facilities on city property locations to be determined in the future. Once it selected SunEdison as its private partner, the LEC contacted the airport and it identified surplus airport land that was not read- ily available to support aeronautical uses as a candidate site. LAL was required to ensure that the project would meet FAA leasing and airspace requirements and initiated those processes and obtained approvals. LAL and SunEdison executed a land access agreement and SunEdison constructed the facility. Financials The financing for the solar projects is based on LECâs commitment to buy all of the electricity generated at a predetermined price over a 25 year contract. For Phase I, price of the electricity is fixed at $0.190 per kWh annually. For Phase II, it is $0.176/kWh. For Phase III, the price dropped significantly to $0.112 / kWh which shows how much solar electricity prices have fallen as the industry has expanded over the past five years. SunEdison, as a private company, utilizes the 30% federal ITC to meet the contracted elec- tricity price and make a profit. The airport receives $0.02 from LEC for every kWh generated as compensation for hosting the facility. Based on 2013 generation numbers, the amount of Figure 5-5. Existing solar projects at Lakeland Linder Field.
Case Summaries 135 compensation received by the airport was $218,000. LEC credits the lease value against the airportâs electricity bill which has covered approximately 65% of the airportâs electricity costs annually. With the addition of Phase III, the compensation will cover 100% of the energy use and the additional credits beyond that will be deposited into a fund to be used for future land acquisition. Lessons Learned This project is an excellent example of an airport generating revenue from renewable energy while limiting its risk. The airport hosts a solar facility but did not pay for its construction nor is it responsible for its operation. The key driver for the success of the project is the City of Lakelandâs commitment to purchase the solar electricity. It is also an example of the dramatic decrease in solar PV electricity in recent years. Under the Phases I and II, the City is paying 33% more for electricity produced by solar compared to current conventional electricity. For Phase III, it is paying about an equivalent price to traditional sources. Regardless, an important economic benefit of solar is that its price is stable and known for 25 years whereas the cost of market power will fluctuate based on fuel prices. Solar provides for long-term price stability and fuel diversification. This example shows the level of cooperation that can occur between a municipal electric department seeking to offer a green energy product to its residents and the airport in providing sufficient land for cost effective solar energy. 5.13 Nantucket (ACK)âGeothermal Heat Pump Fast Facts â¢ Commissioned in 2009 â¢ Component of a LEED certified terminal â¢ Component of what is proposed to be the first carbon neutral airport in the United States Project Scope Terminal building at Nantucket Municipal Airport constructed with a geothermal system; Noah Karberg.
136 Renewable Energy as an Airport Revenue Source A GSHP provides chilled or heated water to air handling units, cabinet heaters, and perimeter radiation during the heating season. During the cooling season, chilled water is supplied to the air handling units only. The system is comprised of closed loop wells, ground and heat pump water circulating pumps, heat exchangers, four heat pumps, and associated dual temperature circulating pumps. The well pumps, chilled water pumps, hot water pumps, dual temperature water pumps, and GXI pumps are all variable speed. The airport is currently working with the Massachusetts Department of Transportation Aero- nautics Division on a project to maximize energy efficiency and build renewable energy to make Nantucket Airport (ACK) the first carbon neutral airport in the country. This work has resulted in a comprehensive analysis of the existing geothermal system. Decision-Making Process In 2009, the Town of Nantucket completed a major renovation to its airport terminal to provide additional space for passenger screening and comply with increased FAA screening requirements. The renovation was designed to meet the U.S. Green Building Councilâs LEED silver certification standards and included a ground source heat pump system to provide renewable thermal energy. Financials The geothermal project was conducted in association with a major renovation and therefore the previous heating and cooling loads are not representative of the current building. As a result, the current Terminal building was modeled using heating data to assess the amount of heating required and price. The analysis estimated that the 33,203 square foot terminal requires 278 MBTU of heating annually. Using 1 gallon = 139,600 BTU for #2 fuel oil conversion and assuming a price of $3.00/gallon, the geothermal heating avoids on the order of $6,000 in fuel oil costs per year. Given that there is an additional demand in electricity from the geothermal system to run the heat pumps, the net savings would be slightly less. However, once a solar facility is constructed, that power will be supplied by the sun. Lessons Learned The current analysis of the system shows that several components need to be added to opti- mize the system, the control interface needs to be updated to make it easier to operate, and staff needs additional training. The operation of two of the heat pumps was logged for operating hours and on/off cycles. It showed that there were short on/off cycle times, as well as 24 hour operation of the equipment. Overnight operation indicates a potential issue with the operation of the building management system. The cyclic nature of chiller operation indicates there may be control problems with the on board settings. In addition to reviewing the control set points, consideration should be given to installation of a buffer tank in the dual temperature loop, and balance valves at the individual heat pumps to properly balance the flow between them. While the equipment is generally fair to good mechanical condition, there are operating issues adversely affecting the function of the system.
Case Summaries 137 5.14 Outagamie County Airport (ATW) Fast Facts â¢ LEED platinum building â¢ Heating and cooling supplied by geothermal â¢ Electricity supplied by solar PV Project Scope In August 2013, Outagamie County Airport (ATW) completed construction of the first airport building designed to achieve a Net Zero Energy standard. The Platinum Flight Center General Aviation (GA) Terminal incorporates energy efficiency measures to reduce the amount of energy consumed in the building, and then supplies what energy is required by renewable sources. Elec- tricity is provided by a 25 kW solar PV system on the terminal roof that will meet a majority of the facilityâs electricity with the remainder purchased from off-site renewable energy sources. All of the buildingâs heating and cooling is provided by a geothermal heat pump system that is com- posed of 20 wells, 260 feet deep, and 10 heat pumps. General Aviation Terminal at Outagamie County Regional Airport with a roof-mounted solar facility; Scott Volberding, Outagamie Airport. Decision-Making Process Airport leadership was cognizant of the volatility in the airline industry and the need to keep costs down and diversify revenue. In addition, airport budget was affected by rising energy prices. County executives established a green vision and the airport set as a goal to reduce its energy use by 70% in 2030. In 2008, ATW undertook an airport-wide energy assessment and implemented efficiency improvements. In 2010, it constructed solar PV and solar thermal systems on the roof of the main terminal. In 2011, ATW was selected to participate in the FAAâs Sustainable Master Plan Pilot Program. This unique framework for the master plan process factored in focus areas as they relate to the economic, environmental and social impact of the airport. The Sustainable Master Plan identified a comprehensive sustainable strategy for the airport. Out of this planning process, ATW identified a goal to build a net zero GA Terminal and worked with qualified pro- fessionals to design a facility that would maximize energy demand and supply required energy through renewable sources.
138 Renewable Energy as an Airport Revenue Source Financials The solar PV system produced 32,138 kWh of electricity in 2014 which met 52% of the build- ingâs electricity demand. The avoided electricity cost from not making purchases from the elec- trical savings was $30,874. Lessons Learned Performance of energy systems needs to be evaluated over time given response to natural con- ditions. There is a high-level of confidence that the building will demonstrate that upfront initial investments are paid back through reduced and predictable energy costs. 5.15 Portland (PWM)âGeothermal Heat Pump Fast Facts â¢ Funding support from FAA VALE program â¢ Includes performance monitoring system â¢ Part of a LEED certified terminal Project Scope Aerial view of geothermal wellfield for Portland International Jetportâs terminal expansion; City of Portland. The City of Portland recently completed a major expansion to the existing terminal building at the Portland International Jetport (PWM). The terminal building was designed in accordance with the U.S. Green Building Councilâs LEED Program. An important aspect of the project is its ground source geothermal heating and cooling system which received dedicated funding under an FAA grant program designed to reduce on-site air emissions at airports. While generically referred to as geothermal, the system is actually a ground source heat pump system that uses the ground as a heat storage medium, pumping heat (stored in water) into the ground in summer and returning it to the building for heating in winter (Figure 5-6). While the geothermal system was sized primarily to serve the expanded terminal area, it has also led to the reduction in the conventional heating and cooling equipment from the pre-existing terminal. The system has been equipped with an energy monitoring/instrumentation system that is tied into the buildingâs energy management system to quantify its actual energy and financial benefits. Decision-Making Process PWM and its design team identified a number of sustainable design alternatives to a conven- tional terminal that would help the building achieve LEED silver certification including the provi- sion of a geothermal system. PWM developed a feasibility analysis for geothermal including how
Case Summaries 139 large a system should be built and the optimal system capacity (based on percentage of building load served). PWM allocated approximately $116,000 in at-risk testing and engineering funds to properly evaluate the viability/feasibility of a ground source geothermal system. The evaluations concluded that a smaller, more optimally sized system of 120, 500-ft deep closed loop wells would provide the best benefit to PWM. The system was not sized to handle the maximum heating and cooling demand of the terminal expansion, but was sized to handle the âbase loadâ of the heat- ing and cooling demand. Smaller sized (and less expensive) conventional systems were designed to handle the peak heating/cooling demands, when they occur. Based on this optimal system design, PWM estimated the project cost and evaluated the potential to fund the project through the FAAâs VALE Program [based on achieving a minimum amount of Nitrous Oxide (NOx) emis- sions reduction]. PWM also prepared a design for a conventional heating and cooling system in the event that the VALE grant application was not awarded. Once it was informed that the grant application was successful, PWM proceeded with final design and construction of the ground source geothermal system as part of the larger terminal expansion project. Financials The premium cost associated with the ground source geothermal system was $3.11 million including the pre-construction at-risk engineering costs. PWM received $2.53 million from the FAA under the VALE Program which represented 81% of the total project cost. PWMâs contri- bution of $463,127 was funded as part of the bond for the terminal project with the annual debt service covered by revenue. The initial testing costs were also covered by available cash associated with airport revenue. Simple payback costs for geothermal system accounts for the increase in electricity usage required to run the borefield pump system and multistack heat pumps that are subtracted out of the savings from avoiding fuel purchase for a conventional heating and cooling system. The value of avoided natural gas usage is calculated on a seasonal basis using winter and summer consumption rates. The estimated net annual savings from the system is $160,000 per year which translates into a payback of the airportâs total share of the project ($579,127) as 3.6 years. Without the VALE funding, the payback would have been 19.5 years. Source: City of Portland Figure 5-6. Bore field system consists of 120 wells, spaced 20 feet apart, each 500 feet deep, and comprised of nearly 23 miles of high density polyethylene pipe.
140 Renewable Energy as an Airport Revenue Source Lessons Learned The premium costs associated with the ground source geothermal system were relatively high and the payback period long so financial support is likely necessary if projects are to be constructed. The geothermal system has a lifespan of 40 years so the financial benefits are realized in the long- term, which PWM understood and believed the long-term investment benefits to be important. Retrofits to existing buildings, especially if their MEP infrastructure is older, can be cost prohibi- tive so new applications should focus on new construction or recently constructed buildings. It is also important to incorporate a performance monitoring system so that the system performance can be evaluated throughout the heating and cooling seasons, year over year. This will provide the facilities personnel who are responsible for operating the ground source system the informa- tion they need to adjust the system operation so that it can maximize both energy and financial savings. PWM continues to optimize the performance of the system as part of a broader building energy management program. Because it has a conventional heating and cooling system in the pre-existing terminal, it can use both systems to find the most efficient balance at any one time. In studying the performance of the geothermal system, PWM has recognized that significant efficiency gains can be realized during the peak cooling months of June, July, and August by using the centrifugal chiller as the lead in cooling over the heat pumps. It is anticipated that this change could save up to $30,000 in electrical costs over the cooling season due to the greater efficiency achieved by the centrifugal chiller during these months when it is optimally loaded. The efficiency of the geothermal system at PWM was significantly enhanced when it installed a detailed performance monitoring system that allowed PWM staff to operate the system in accordance with changeable weather conditions. 5.16 Redding (RDD)âSolar PV Fast Facts â¢ Airport owned, equipment leased â¢ Electricity purchased by municipal utility â¢ Utilized ARRA funding Project Scope Aerial view of ground-mounted solar project at Redding Municipal Airport; Rod Dinger, Redding Municipal Airport.
Case Summaries 141 Redding Municipal Airport (RDD) in association with Halcyon Solar developed a unique solar PV project on airport property that directly supplies on average 98% of its electricity needs. The system occupies about 3 acres of land on the southwest side of the airport close to the termi- nal and existing electrical infrastructure. Rated at 695 kilowatts, it produces enough electricity to power approximately 100 homes. In an arrangement, RDD owns the facility but leases the equipment from a private company, which allows the airport to benefit from tax credits while also using the electricity on-site. Decision-Making Process Under California Law, all electric utility companies are required to purchase a portion of their power from renewable energy sources. The requirement at the end of 2013 was 20% that will increase in 2020 to 33%. To incentivize the construction of solar power in city limits and allow it to achieve state mandates, the Redding Electric Utility established a program that provides a 5 year rebate of $0.35 per kilowatt hour for approved solar projects. RDD applied for the rebate, which is funded through an energy surcharge on customersâ bills. The city approved the rebate for the airport project and securing the rebate allowed RDD to proceed toward construction. RDD received required FAA approval for airspace review and other local and state permits and initiated construction. Financials RDD owns the facility but leases the equipment from a private company, Belvedere Equip- ment Finance Corporation. RDD uses rebates it receives from the Redding Electric Utility for each kilowatt hour the system generates to fulfill its lease payments to Belvedere. Once the rebate expires after 5 years, RDD can either continue to make payments to Belvedere through the 15 year term of the agreement, which is equivalent in value to discounted electricity on the open market, or opt to buy the facility after Year Seven and secure free electricity from the sys- tem more quickly after its investment is paid off. As a private tax paying company, Belvedere was able to take advantage of the ARRA grant that covered 30% of the total cost of the project equipment and pass those savings on to the airport in the form of reduced equipment lease payments. Lessons Learned This project is unique in that the airport owns the facility but leases the equipment which allows the airport to both monetize the tax credit (by working with a private entity) and use the electricity directly on-site. An alternative arrangement would be for the airport to host the facility and execute a power purchase agreement to buy the electricity from the private owner, a structure which has been used in several other cases. The structures are similar but in the case of this project, all of the financial aspects of the project are transparent. The project also took advantage of several special circumstances including the ARRA cash grant of 30% of the project cost and the Redding Electric Utilityâs elevated rebate price which, at the time, was the highest in the state.
142 Renewable Energy as an Airport Revenue Source 5.17 San Diego (SAN)âSolar PV Fast Facts â¢ Third party owned â¢ Located at an FBO â¢ Part of LEED certified terminal Project Scope Engineering plans for solar proposed on new Landmark Aviation hangars at San Diego International Airport; Michael Johnson, Spear Point Energy. Spear Point Energy is in the process of constructing a 554 kW DC photovoltaic system mounted on the roof of the new Landmark Aviation terminal/hangar building at San Diego- Lindbergh Field Airport (SAN). The solar project is part of a new LEED building constructed by Landmark Aviation as part of a 37-year lease recently awarded by SAN. Landmark Aviation is a FBO providing business aviation and aircraft charter operations at the airport. The solar project will be owned by Spear Point Energy and will consist of 1,788 modules located on the roof of the terminal/hangar building and is expected to generate approximately 1,000,000 kw-hours of electricity annually that will be sold to Landmark Aviation under a 25-year PPA. The project is designed to offset up to 80% of the building electricity needs. Decision-Making Process SAN awarded Landmark Aviation a 37-year lease in 2012 as part of a commitment to build a new campus facility on 12.4 acres of land at the airport. The airport required Landmarkâs new building meet Silver LEED certification. Landmark Aviation is committed to sustain- ability and reducing greenhouse gas emissions and wanted to strive higher than Silver and achieve a Platinum certification. To help attain Platinum LEED certification, Landmark Avia- tion looked to Spear Point Energy to develop a solar PV project to generate clean renewable energy to offset electricity usage in the building. In addition, the solar project will provide environmental benefits and reduce energy costs over a 25-year period thereby providing a cost certainty to a portion of the energy costs which helps in future planning and economic budgets.
Case Summaries 143 Financials The project does qualify for net metering in California where the utility meter is able to spin and record energy flow in both directions. Therefore, Landmark Aviation can offset some or all of its electricity usage (depending on production and electric demand) with the solar PV project through net metering. SAN does not receive any financial benefit from the arrangement with Landmark and Spear Point where Landmark is the sole beneficiary of the PPA. The airport does receive indirect benefits as an environmentally responsible landlord through the visibility of the project. The terms of the financial arrangement with Spear Point Energy and Landmark Aviation were consistent with the lease agreement with SAN. Lessons Learned This project is an example of a solar PV project, developed by a FBO, playing an integral role in meeting the sustainability demands by the airport for construction of a new building. One of the challenges with this project was the construction constraints associated with a small busy international airport. Available land for laydown and storage is minimal, so mobilizing and preparing for construction operations is a challenge. Also, on-field access is tightly regulated through the Department of Homeland Security, therefore, additional background checks and training were required for the construction crew, which added time and costs. 5.18 San Diego (SAN)âSolar PV Fast Facts â¢ Third party owned â¢ Airport purchases electricity through a PPA â¢ Part of LEED certified terminal Project Scope Schematic of roof-mounted solar on Terminal 2 at San Diego International Airport; Bryan Morrison, Borrego Solar. The San Diego County Regional Airport Authority (SDCRAA) reached an agreement with a private third party, Lindberg Field Solar 1, LLC (LFS1), whereby LFS1 will build, own, and operate solar facilities associated with Terminal 2 and the SDCRAA will purchase the power generated through a long-term contract or PPA. The project will be developed in three
144 Renewable Energy as an Airport Revenue Source phases: (1) rooftop facility of 650 kW on the new wing on Terminal 2; (2) carport structures total- ing 2 MW over surface parking adjacent to Terminal 2; and (3) a rooftop facility of 650 kW over the older wing of Terminal 2 once roof repairs are made. Through the purchase, SDCRAA acquires the electricity and the environmental attributes which include the RECs, emissions reductions, and carbon off-set credits. Phase I commenced construction in January 2015 with Phase II following in Spring 2015. The schedule for Phase III will be set once work is com- pleted on the existing roof. Decision-Making Process The solar projects were a logical next step for the SDCRAA following the creation of a sus- tainability policy governing facility construction and the execution of a memorandum of understanding with the California attorney general that mandates air quality improvements as a condition for facility expansion. The recently completed GreenBuild Project includes the Terminal 2 expansion, which became the worldâs first commercial aviation terminal certified under the U.S. Green Building Councilâs LEED program at the platinum level. The solar proj- ects will give the terminal additional LEED points. SDCRAA also recently completed a 12kv micro grid that allows it to own and manage the electrical infrastructure on airport property. It is currently planning to integrate renewable energy and energy storage into the micro grid that will allow it to âislandâ the airport and operate self-sustainably in the event that the grid should fail. Financials The price of the electricity purchased is a fixed rate of $0.1367/kWh for 20 years. The airport has the option to buy back the system after year 6 and each successive year thereafter at a pre- negotiated price. LFS1 guarantees 90% of the forecasted output and will pay an escalating rate for the difference between the guaranteed output and the actual output for supply under 90% of the forecast. Based on a conservative analysis of increasing electricity prices, the estimate of cost savings is between $4â9M over a 20 year period. Lessons Learned The primary lesson of the SDCRAA experience is that it was able to transform policy and legal directives into a new course and brand for the airport. It also determined that a flat PPA price was the best option for the airport so that the price of electricity remains flat. SDCRAA would also have investigated the roof of the old wing of the terminal earlier in the process as completing the rooftop phases simultaneously would have been more cost effective.
Case Summaries 145 5.19 Toronto-Pearson International Airport (YYZ)âSolar Thermal Fast Facts â¢ Provides pre-heated building ventilation â¢ Part of a LEED certified training facility â¢ Solar Thermal Project of the Year Award Project Scope Solar Thermal at Toronto Pearson International Airportâs Fire and Emergency Training Institute; Greater Toronto Airport Authority. The Greater Toronto Airport Authority (GTAA) built a new Fire and Emergency Training Institute (FESTI) in 2007 at YYZ property. The multi-functional building is composed of a school, administrative offices, safety trucks and bays, and on-site training activities. The building was the airportâs first LEED silver certified building with state-of-the art technology that reduces its environmental footprint. Some of the innovative technologies incorporated into the design of the building are a green roof, recycled building materials, water saving systems and use of natural daylight. One of the more innovative and prominent technologies incorporated into the building is the SolarWallÂ® solar air heating system, which is used to heat building ventilation air to displace heat generated by fossil fuels. Incorporating the SolarWall contributed to the LEED points needed for the silver certification. Decision-Making Process YYZ was the first airport to achieve ISO 14000:2004 certification for Environmental Manage- ment. Under this standard the airport has committed to: â¢ Ongoing commitment to pollution prevention; â¢ Compliance with legislation; and â¢ Continual environmental improvement. As part of the continual environmental improvement, when the GTAA was looking at devel- oping the FESTI building, it was committed to sustainable building technology and a goal of silver certification under LEED. In order to reach silver certification, the architects and engineers had to incorporate numerous efficient technologies to generate enough LEED points. One of the more innovative technologies proposed was a SolarWall system that provides heated ventilation air for the building (Figure 5-7). The technology works by the sun warming the surface of the
146 Renewable Energy as an Airport Revenue Source perforated black collectors on the wall of the building, heats the air, and distributes the warm air through the building. During the warmer months when heating is not required, dampers open to direct the warm air away from the building thereby providing cooling efficiency during the warmer months. The advantage of the SolarWall allows for more building heat to be generated by clean solar technology thereby displacing heat generated from fossil fuels that results in fewer greenhouse gas emissions. Financials The SolarWall project was part of the larger construction cost of the FESTI building. The SolarWall reduces annual heating costs by $20 to $80 per square meter of the perforated black collector which correlates into annual CO2 emissions reductions of 1 ton per 5 square meters of collector. These systems can save up to 20 to 50% of heating fuel consumption thereby leading to a relative quick return on investment. Lessons Learned The SolarWall system has an expected lifespan of more than 30 years with minimal main- tenance cost; therefore, the financial benefits are realized in the short-term with a continuing return on investment over a long time period. Short-term benefits include displaced energy needed to provide building heat from traditional fossil fuel heating sources up to 20 to 50% of the building heat load. One other benefit of the FESTI building design was good public rela- tions benefits from industry recognition for the variety of sustainable features in the design. Specifically, the building was featured in the Justice Facilities Review by the American Institute of Architects and won numerous awards including the 2007 Solar Thermal Project of the Year Award by the Canadian Solar Industries Association. The SolarWall technology not only provides pre-treated building air through clean renewable energy but is a unique multi-layered design that adds to the modern architectural look of the building and received numerous architectural and solar project awards which provided good public relations benefits for the GTAA. Source: Greater Toronto Airport Authority Figure 5-7. FESTI SolarWall at Toronto Pearson International Airport.
Case Summaries 147 5.20 Tucson (TUS)âSolar PV Fast Facts â¢ Funding support from FAAâs Section 512 Program â¢ Provides ancillary benefit of shaded parking â¢ First phase of a multi-phase project Project Scope Aerial view of ground-mounted solar project over main parking lot at Tucson International Airport; Fred Brinker, Tucson Airport Authority. In 2013, the Tucson Airport Authority (TAA) installed a 1.0 MW PV system mounted on a canopy structure over a portion of the daily parking lot at Tucson International Airport (TUS). The project is the first phase of the airportâs larger plan to construct a total of 2.5 MW of solar over terminal surface daily and hourly parking lots, providing clean energy and with the additional benefit of providing shading to visitors parking in the terminal parking lots. The 1.0 MW facility generated 1,289,640 kWh in calendar 2014 (Figure 5-8), which represents about 40% of the electricity used to heat and cool the main terminal. The project was awarded AIP discretionary funding from the FAA for approximately 91% of eligible costs of the project, which was a significant driver for the airport developing and owning the facility. Decision-Making Process The solar resources in Southern Arizona are very favorable to solar PV due to the abundant sunshine which has contributed to the development of a robust solar industry. The airport sought to capitalize on this market while also providing a better parking experience for visitors with shaded parking. The airport explored pursuing FAA grant money to make the project more cost effective. It was one of the first airports to utilize FAA discretionary funding for energy projects as authorized under the Section 512 âEnergy Efficiency of Airport Power Sources of the FAA Modernization and Reform Act of 2012.â The airport developed the project using a radial layout or amphitheater design, to follow the orientation of the parking area. The primary goal was to minimize loss of parking spaces as well as ensure the system would have an aesthetically pleasing look with a distinctive architectural design consistent with the existing buildings at the airport. Financials Electricity generated by the solar facility offsets electricity purchased from the grid. Total cost of the project was $6.7M, of which FAA provided funding for $5.78M, the Arizona DOT
148 Renewable Energy as an Airport Revenue Source provided $284,000 and the TAA provided the remaining $640,000. Combining the FAA grant with funds from the Arizona DOT, the airportâs share was reduced significantly improving its ROI. Payback is calculated through the reduction in electricity purchased from Tucson Electric Power (TEP). With an average electricity cost of 10.6 cents per kW-hr, the airportâs return of investment for its share of the project is 5 years. Lessons Learned This project is an example of the new FAA funding under Section 512 to develop clean energy projects as part of the federal governmentâs commitment to improve energy efficiency, reduce greenhouse gas emissions, and encourage/implement renewable energy projects. It demonstrates how FAA infrastructure investment in clean energy can translate into long-term savings in airport electricity budgets while also contributing to broader environmental benefits associated with climate change mitigation. Source: Fred Brinker, Tucson Airport Authority Figure 5-8. Electricity produced per month by Tucson Airport Solar Array in 2014.
Case Summaries 149 5.21 University Park (UNV)âGeothermal Heat Pump Fast Facts â¢ Commissioned in October 2011 â¢ Utilized state program that guaranteed a 15 year payback â¢ Example of successful terminal retrofit Project Scope Entrance to University Park Airport which has a geothermal system at the airport terminal; Skip Webster, The Marlin Group. In 2011, University Park airport incorporated a geothermal heating and cooling system as part of a terminal improvement project. The project consists of four closed loops and 33 500-foot deep wells. The airport hired an energy service contractor (ESCO) through the stateâs guar- anteed energy savings program to design the system and identify other energy efficiency mea- sures as part of the renovation. The ESCO scoped out the project including energy efficiency upgrades and a new geothermal heating and cooling system that would be paid back over a 15 year period. Decision-Making Process The airport needed to replace the heating and cooling system in its terminal building origi- nally built in 1983. It was spending a considerable amount of money keeping the old system running and the system continued to perform unfavorably. It conducted an analysis of the life cycle costs of installing a conventional heat and cooling system to that of a geothermal heat pump system. The airport was in a strong financial position to use cash to pay for the system which improved its rate of return. The state program that guaranteed energy savings provided additional assurances that the project would be cost-effective. Financials The airport paid for the installation of the system and other upgrades at a cost of $1.23M with available cash, and ESCO guaranteed a 15-year payback. The former heating and cooling system was fueled entirely by electricity. Electricity costs in 2010 before the system was installed were $109,000; in 2013 electricity costs were $61,000 despite the fact that the electricity rate increased
150 Renewable Energy as an Airport Revenue Source from $0.0412/kWh in 2010 to $0.0620/kWh in 2013. Maintenance costs in 2010 were $67,000; in 2013 maintenance costs were $20,000. Lessons Learned The project is an example of a case where a heating and cooling retrofit with geothermal heat pumps can be cost-effective. The project was completed in association with other energy efficiency upgrades such as smart metering and advance controls, which make the whole building system considerably more efficient. Unfortunately, it is difficult to monitor separately the individual ben- efits of the GSHP and various other efficiency upgrades. However, it demonstrates the broader benefits of the whole building approach with GSHP.