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Solar PV Project Redding Airport

Solar PV Project Redding Airport. Rod Dinger, A.A.E Support Services Director/Airport Manager Barry DeWalt Assistant City Attorney City of Redding. Power Purchase agreement (PPA) firms contact airport.

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Solar PV Project Redding Airport

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  1. Solar PV Project Redding Airport Rod Dinger, A.A.E Support Services Director/Airport Manager Barry DeWalt Assistant City Attorney City of Redding

  2. Power Purchase agreement (PPA) firms contact airport • Two interested PPA Firms competing. DRI and SPG contacted us independently around August 2010. • Turn Key Operation to supply electricity for the Passenger Terminal Building and Airfield Lights….1.1 million kWh annually. • Revenue Return - DRI offered $654,000 and SPG offer$620,000 over 20 years….not too bad. • The offers were basically to sell us back the electricity about $0.01 per kWh under what we were currently paying.

  3. Why the Sudden PPA Interest? • Historical usage and meter set-up was attractive. • City of Redding Electric Utility was offering $0.35 per kWh rebate for solar projects within the City limits. The largest per kWh rebate in the State of California at the time. • American Recovery and Reinvestment Act (ARRA) eligible for renewable energy projects.

  4. Why not go with a ppa? • Neither PPA firm was willing to share their investment costs or their expected revenue return. • Negotiating challenges. • Time was of the essence…REU rebate was to expire at end of FY and at the time, ARRA funded was not extended beyond 12/2010.

  5. Looking at possible sitesChoices…choices…

  6. Eureka Moment! • As we were running out of time…we were sitting in my office and I asked… ”why don’t we try to do this ourselves? “ • We invited in a local experienced solar contractor that had a great local reputation. They just completed a project at local high school and were working on a project at a local middle school. They freely provided estimated costs. • We learned the overall project cost was in the $4.1 million range. • REU Rebate and ARRA funding was estimated to be in the $3.1 million range. REU - $2.0 million and ARRA - $1.1 million.

  7. Expected Return • Projected revenue was about 3.6 million over 25 years verses 654,000 with a PPA over 20 years. • The project is cash neutral for the first 7 – 8 years, then the savings kick-in. • The Airport will remain financially self-sufficient. • Sustainable energy source, reducing carbon emissions by 22,970 tons over 25 years.

  8. Now What… • Need to sell the City Manager and City Council on the concept and risk. • Final Site Selection. • Sole Source Construction Contract. Due to time constraints… we asked Redding City Council to waive the bidding process and let us sole source with Halcyon and Belvedere Equipment Financing. • FAA Review (Airport Layout Plan and Air Space Review). • ARRA Money. • Qualify for the Redding Electric Utility Rebate. • Business Interruption Insurance.

  9. Construction Begins

  10. Redding Mayor symbolically “Turning on the switch” – May 2011

  11. Let the electricity flow!

  12. PV System Specifications • 602 kW – Passenger Terminal Building. • 93 kW – Runway and Taxiway Lighting. • 3 acre site. • 3,504 (3’x5’) panels. • 3 inverters. • Internet Based Monitoring System. • PV Modules expected to last 25 years… 0.05% annual loss. • Designed to offset 98% of the terminal and airfield lighting. • Airport to receive $0.1370 per kWh for electricity generated beyond actual usage.

  13. Thank You!

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