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From page 54... ... 54 This chapter presents a model business case for airport renewable energy that readers can use to conceptualize and develop their own business cases. This model presents how an airport might make the business case for a solar photovoltaic project. Read the entire page →
From page 55... ... Reviewing a Model Business Case 55 these were successful in reducing the demand for energy, the forecast of increasing passenger activity, rising energy costs, and volatility of prices were concerns for future airport budgets. Increasing energy costs in the terminal translate to increasing airline costs; so the airport management thought that the airlines would generally support measures that helped control those costs. Read the entire page →
From page 56... ... 56 Developing a Business Case for Renewable Energy at Airports 6.1.2 Project Vision The project vision communicates the primary purpose of the project and its guiding principles. 6.1.2.1 Purpose The purpose of this project is to develop a solar PV facility to generate a meaningful amount of electricity at a long-term stable price for airport use. Read the entire page →
From page 57... ... Reviewing a Model Business Case 57 6.1.2.2 Guiding Principles The guiding principles for the project are as follows: • The airport has experienced escalating and volatile electricity prices in recent years. Forecasts of energy prices from the EIA suggest that electricity prices will continue to increase. Read the entire page →
From page 58... ... 58 Developing a Business Case for Renewable Energy at Airports • Energy storage. Adding energy storage capabilities may advance the airport's objectives but also introduces potential costs and performance risks. Read the entire page →
From page 59... ... Reviewing a Model Business Case 59 alternative ownership and design elements if desired. Those presented below provide readers with credible examples. Read the entire page →
From page 60... ... 60 Developing a Business Case for Renewable Energy at Airports weight applied to benefits of power reliability, or increasing cost-effectiveness as markets develop.] The project's electricity production is also limited by variable performance in changing seasonal and weather conditions. Read the entire page →
From page 61... ... Reviewing a Model Business Case 61 the size of load. Given the relatively small size of the system, this is expected to be achievable. Read the entire page →
From page 62... ... 62 Developing a Business Case for Renewable Energy at Airports The fuel cell that is currently commercially available and being deployed by business and government is a 200 kW unit that is about 30 feet long by 9 feet wide and 7 feet tall. Five to 10 of these units would need to be installed to match the capacity requirements of the other alternatives, making the space requirements less than for solar but more than a conventional fossil fuel–fired generator. Read the entire page →
From page 63... ... Reviewing a Model Business Case 63 While future passenger capacity is listed in the fatal flaw analysis to recognize that airports with sufficient levels of business will be capable of capitalizing such projects, the sections below do not revisit this condition. Likewise, infrastructure adequacy is generally sufficient for airports given their land use intensity. Read the entire page →
From page 64... ... 64 Developing a Business Case for Renewable Energy at Airports 6.3.2 No-Build 6.3.2.1 Airspace Many airports have existing airspace obstructions that require mitigation. These vary from trees that penetrate airspace to obstructions on the ground that temporarily block controllers' view. Read the entire page →
From page 65... ... Reviewing a Model Business Case 65 and customize it as necessary to reflect the individual airport's characteristics and priorities. In this case, each set of criteria was weighted evenly at 25%. Read the entire page →
From page 66... ... Evaluation Factor Solar photovoltaic No-Build Diesel Fuel Cell f Economic (25% weighting) Capital Costs 10 20 20 0 Leveraging 20 0 20 20 O&M Costs 20 0 20 0 Life-Cycle Costs 20 0 0 10 Revenue/Savings 20 0 0 10 Benefit/Cost 20 0 10 10 Energy Costs 20 0 0 10 Weighted total 32.5 5 17.5 15 Sel -Sustainability (25% weighting) Read the entire page →
From page 67... ... Reviewing a Model Business Case 67 the middle cost with the corresponding middle score (10) Read the entire page →
From page 68... ... 68 Developing a Business Case for Renewable Energy at Airports cost savings for a number of the cities in the east, garnering a score of 20. For cities with lower electricity costs, no-build would score best, followed by solar. Read the entire page →
From page 69... ... Reviewing a Model Business Case 69 Because these factors are less quantitative and more dependent on the airport's sustainability objectives, the following analysis is more qualitative than for the economic criterion above. In some instances, like the first one, the criteria are more of a guidepost to help design a project that meets the airport's objectives. Read the entire page →
From page 70... ... 70 Developing a Business Case for Renewable Energy at Airports that there could be broader benefits associated with any of the technologies but that should be evaluated and scored after the project is designed. • Solar: yes, as part of a larger energy plan • Diesel generator: yes, if combined with co-generation to also generate heat • Fuel cell: yes, as part of a larger energy plan • No-build: no compounded benefit 6.4.3 Environmental/Social Environmental and social benefits accurately provide enhanced weight for renewable energy projects. Read the entire page →
From page 71... ... Reviewing a Model Business Case 71 electricity generator in air quality impaired areas. Fuel cells also limit emissions significantly while diesel and other fossil fuel generators augment the pollution. Read the entire page →
From page 72... ... 72 Developing a Business Case for Renewable Energy at Airports • Diesel generator: expected that the project can be located and built in a manner that complements the master plan • Fuel cell: expected that the project can be located and built in a manner that complements the master plan • No-build: expected to be consistent with the master plan Ease of implementation: measure of how difficult it may be to implement the project Another practical consideration that could also translate into the relative cost of development is the relative ease of project implementation. For example, projects that are politically risky or engender local opposition may create new obstacles during the development process and lead to additional costs to resolve. Read the entire page →
From page 73... ... Reviewing a Model Business Case 73 • Fuel cell: expected that the project will avoid unforeseen risks; modify if local circumstances suggest otherwise • No-build: expected to have no impact unless there is a system failure 6.5 Summary Conclusion and Next Steps The initial review of the preferred alternative -- an on-site solar PV electricity generating facility that is financed, owned, and operated by the airport -- scores favorably against the other alternatives in meeting the airport's objective of stabilizing long-term electricity rates. The solar PV project scored as the best alternative in each of the three categories of the evaluation criteria: economic, self-sustainability, and environmental/social. Read the entire page →

From page 54...

... 54 This chapter presents a model business case for airport renewable energy that readers can use to conceptualize and develop their own business cases. This model presents how an airport might make the business case for a solar photovoltaic project.