North Carolina Military Business Center Army Renewable Energy RFP Forum May 2, 2012
North Carolina Military Business
Center
Army Renewable Energy RFP Forum
May 2, 2012
Agenda
• Welcome, introductions and purpose
• NCMBC introduction
• Emerging patterns in DoD energy acquisition
• Review of the draft RFP
• Teaming for government contracts
• Background info, responding to the future RFP
• Discussion, questions and networking
Welcome, Introductions and Purpose
NCMBC
Introduction
Military Impact
• Total DoD annual impact in NC: $23.4 billion
• Second largest sector of economy, 7% of GDP
• 4th highest military presence in nation
– 5 major installations
– 116,073 active duty personnel (FY2009)
– 16,000 annual military personnel transitions
• Growth: BRAC and “Grow the Force”
Mission & Goals
Mission
To leverage military and other federal business opportunities for economic development and quality of life in North Carolina
Goals
1 - Increase federal business for NC companies
2 - Integrate military/families into workforce
3 - Support defense-related recruitment
Business Development Team
• Create awareness of opportunities, recruit NC firms
• Identify current opportunities, notify NC firms
• Assist firms with solicitations, quotes, proposals
• Pre-position, develop sub-contract opportunities
CY2011 154 Contracts $262 - $2,891 million
CY2005-2011 1,213 Contracts $2,808 - $8,371 million
As of: 16 APR 2012
DoD Procurement & NCMBC Business Developers
Cherokee Clay
Graham
Alamance Alexander
Alleghany
Anson
Ashe
Avery
Beaufort
Bertie
Bladen
Brunswick
Buncombe
Burke
Cabarrus
Caldwell
Caswell
Catawba Chatham
Cleveland
Columbus
Dare Davidson
Davie
Duplin
Edgecombe
Forsyth Franklin
Gaston
Gates
Granville
Greene
Halifax
Harnett
Haywood
Henderson
Hertford
Hoke
Hyde
Iredell
Jackson
Jones
Lee Lincoln
McDowell
Madison Martin
Mitchell
Montgomery
Nash
New
Northampton
Orange
Pamlico
Pender
Person
Pitt
Polk
Randolph
Richmond
Robeson
Rockingham
Rowan
Rutherford
Sampson
Scotland
Stanly
Stokes Surry
Swain
Tyrrell
Union
Vance
Wake
Warren
Washington
Watauga Wilkes
Wilson
Yadkin
Yancey
Pasquotank
Chowan
Greater than $50 million
$20 million to $50 million
$10 million to $19 million
Less than $10 million
Transylvania Macon
Moore Mecklenburg
Guilford
Cumberland
Johnston
Wayne
Onslow Carteret
Craven
New Hanover
Durham
Lenoir
NCMBC – Serving Statewide!
DoD Data FY2009
Priority and Strategic Initiatives 2012
• Future opportunities and industry focus
– Energy/Environmental, Construction, Logistics, etc
• Teaming/subcontracting initiative, with major primes
• Expand, promote business resources, training
– Basic, intermediate (DCA), advanced training
• Support recruitment of defense contractors
• Workforce initiatives (I Hire Military, StayNC)
Upcoming NCMBC Events
• Consolidated Teaming Forum (8 MAY 8)
• Defense contractor academy (JUN – AUG)
• NC Federal Environmental Symposium (13 JUN)
• NC Federal Advanced Technology Symposium (17 JUL)
• Defense Trade Show (7 AUG)
• NC Aerospace Supplier Conference (14 AUG)
• 2012 Federal Construction Summit (10-11 OCT)
Emerging Patterns in DoD Energy Acquisition
Assistant Secretary of the Army (Installations, Energy & Environment)
16
Perfect Storm
Energy Initiatives Task Force UNCLASSIFIED
Assistant Secretary of the Army (Installations, Energy & Environment)
17
Army Energy in Perspective – 2010
24%
76%
42%
58%
Facilities
Vehicles & Equipment
(Tactical & Non-tactical)
Sources: Energy Information Agency, 2010 Monthly Energy Review; Agency Annual Energy Management Data Reports submitted to DOE's Federal Energy
Management Program (Preliminary FY2010)
35%
65%
DoD
80%
Army
23%
Federal
Gov 1%
Federal Government United States Department of Defense
U.S. = 98,079 Trillion Btu DoD = 819 Trillion Btu Fed Gov = 1,096 Trillion Btu(FY09) U.S. Army = 189 Trillion Btu
FY10 Highlights - $2.5+B Operational Energy Costs - $1.2 B Facility Energy Costs - +64% fuel costs in Afghanistan - not
counting cost to deliver and secure - +$400 million increase in fuel costs
expected in FY11 across DoD in Afghanistan
Energy Initiatives Task Force UNCLASSIFIED
Assistant Secretary of the Army (Installations, Energy & Environment)
Army Energy Program
18
• Change the Culture: Every Soldier a Power Manager Senior Energy & Sustainability Council (SESC) / Senior Energy Executive (SEE)
Energy & Sustainability must be a consideration in all Army activities
System-wide approach for designing base camps to capture efficiencies
• Drive Efficiency across the Enterprise
– Technology/policies will reduce energy footprint
– Leverage public/private financing to accelerate efficiency projects
– Implement technologies to significantly reduce energy footprint in the field
• Build Resilience through Renewable / Alternative Energy
– Diversify sources of energy to allow for continued operations during energy
disruptions
– Attract private investment to develop large-scale renewable energy projects
– Provide flexibility & resiliency by developing alternatives & adaptable capabilities
• Science & Technology
– Army’s future efforts depend on Science & Technology investments
Energy Initiatives Task Force UNCLASSIFIED
Assistant Secretary of the Army (Installations, Energy & Environment)
Soldier Basing Vehicles
Installation
Land
Air
Tactical Non Tactical Contingency
OPERATIONAL ENERGY
NET ZERO STRATEGY
19
Army Power & Energy
“Grand Challenges”
• Give soldiers and leaders capability to manage energy status, resources, performance
• Significantly reduce energy footprint
• Provide flexibility and resiliency by developing alternatives and adaptable capabilities Power and Energy Strategy White Paper, Army Capabilities Integration Center/Research, Development and Engineering Command
/Deputy Chief of Staff, G-4, US Army, 1 April 2010
Energy Initiatives Task Force UNCLASSIFIED
Assistant Secretary of the Army (Installations, Energy & Environment)
A Net Zero ENERGY Installation produces as much energy on site as it uses, over the course of a year
A Net Zero WATER Installation limits the consumption of freshwater resources and returns water back to the same
watershed so not to deplete the groundwater and surface water resources of that region in quantity or quality
A Net Zero WASTE Installation reduces, reuses and recovers waste streams, converting them to resource values with
zero solid waste to landfill
A Net ZERO INSTALLATION applies an integrated approach to management of energy, water, and waste to capture and
commercialize the resource value and/or enhance the ecological productivity of land, water, and air
20
Basing – Net Zero Installations
UNCLASSIFIED Energy Initiatives Task Force
Assistant Secretary of the Army (Installations, Energy & Environment)
21
Net Zero ‘Scorecard’
Patterned after the federal
OMB Sustainability & Energy
Scorecard
Net Zero Trends
Pilot Installations’ trends by fiscal year,
using their Scorecard data
Tracking Net Zero Progress
Success Stories
For more info on Installation successes:
• https://eko.usace.army.mil/public/fa/netzero/
• http://army-energy.hqda.pentagon.mil/netzero/
Energy Initiatives Task Force UNCLASSIFIED
Assistant Secretary of the Army (Installations, Energy & Environment)
22
Basing – Net Zero Installations
Energy Initiatives Task Force UNCLASSIFIED
Assistant Secretary of the Army (Installations, Energy & Environment)
Innovation
23
The world will not evolve
past its current state of
crisis by using the same
thinking that created the
situation. - ALBERT EINSTEIN
Energy Initiatives Task Force UNCLASSIFIED
Assistant Secretary of the Army (Installations, Energy & Environment)
Army Renewable Energy NOT New
24 Energy Initiatives Task Force UNCLASSIFIED
Fort Carson, CO
2 MW PV
Assistant Secretary of the Army (Installations, Energy & Environment)
Army Approach to Achieve Renewable Energy Goals
Energy Initiatives Task Force UNCLASSIFIED 25
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Ene
rgy
Co
nsu
mp
tio
n (
MW
h)
Path to 25% Renewable Energy by 2025 - Notional
Renewable Energy
Traditional Energy
7.5% (EPAct 2005)
25% (NDAA 2010/ EO 13514)
Energy Efficiency Gains funded by
appropriated funding, ESPC, UESC
Requires leverage of private sector
funding, EUL, PPA
Assistant Secretary of the Army (Installations, Energy & Environment)
Where the Army Needs to Go
Energy Initiatives Task Force UNCLASSIFIED 26
Major Issues Declining Budgets
Specialized Expertise Enterprise Strategy
Assistant Secretary of the Army (Installations, Energy & Environment)
Energy Initiatives Task Force (EITF) announced
by the Secretary of the Army on August 10, 2011
at GovEnergy.
EITF will serve as the central management office
to implement cost-effective large-scale renewable
energy projects on Army installations leveraging
industry financing.
Features:
• Large-scale renewable energy projects
- Greater than 10MW projects
- Coordinate with installations for 1-10MW
projects
- Third-party financing authorities: PPAs, EULs,
UESCs and ESPCs
27
Energy Initiatives Task Force
Energy Initiatives Task Force UNCLASSIFIED
Assistant Secretary of the Army (Installations, Energy & Environment)
• Project Prioritization
– Focusing on the most promising energy sources and the most
favorable markets, supported by required expertise
• Improved Consistency and Communication
– Providing a well-defined process through a central point of
communication with industry
• Economic Optimization
– Leveraging economies of scale across multiple projects
• Goal Compliance
– Managing projects across all installations, leading to a more
direct path to meeting energy mandates and goals
Benefits of Centralized Approach
Energy Initiatives Task Force UNCLASSIFIED 28
Outcome: Reliable program for Army and industry
Assistant Secretary of the Army (Installations, Energy & Environment)
Energy Initiatives Task Force UNCLASSIFIED 29
Energy Initiatives Task Force
Mission
Strengthen Army energy security and sustainability by
developing a comprehensive capability, and planning and
executing a cost-effective portfolio of large-scale renewable
energy projects by leveraging private sector financing.
Vision
Securing Army installations with energy that is clean,
reliable and affordable.
Assistant Secretary of the Army (Installations, Energy & Environment)
Director - Richard Kidd
Executive Director - John Lushetsky (DOE)
Kathy Ahsing, Director
Clyde Reynolds
Jeff Smith
MAJ (P) Kevin Lovell
U.S. Army Corps of Engineers Defense Logistics Agency Department of Energy
Alan King, Director
Douglas Waters
Erich Kurre
Paula Skipper
Jon Powers, Director
Heidi Hansen, OGC Dedicated Attorney
30
EITF Organization
NREL and other DOE Labs
Energy Initiatives Task Force UNCLASSIFIED
Office of the Director
Planning Division Execution Division Outreach Division
Assistant Secretary of the Army (Installations, Energy & Environment)
31
Roads to Project Completion
Acquisition Strategies: Various approaches to acquiring energy
Development strategy: Planning and execution of project opportunities
Large-scale
renewable
energy projects
Assistant Secretary of the Army (Installations, Energy & Environment)
The EITF will leverage existing authorities to meet
sustainability and renewable energy goals:
• Utility Energy Services Contracts (10 USC 2913)
• Enhanced-use Leasing (10 USC 2667)
• Easement authority (40 USC 1314)
• Utility purchase authority (FAR Part 41)
• Power Purchase Agreements (10 USC 2922a)
• Energy Savings Performance Contracts (10 USC 2865)
• Cooperative Agreements (31 USC 6305)
• Sale of electrical power from alternative energy and co-
generation facilities (10 USC 2916)
Energy Initiatives Task Force UNCLASSIFIED 32
Army’s Enabling Authorities
Assistant Secretary of the Army (Installations, Energy & Environment)
• The EITF will develop a multi-pronged
acquisition approach that will provide
required flexibility.
• We expect to utilize multiple contracting
offices, potentially including the Army
Corps of Engineers and Defense Logistics
Agency, as well as DOE power marketing
administrations (e.g., WAPA, BPA, TVA).
Acquisition Approach
Energy Initiatives Task Force UNCLASSIFIED 33
Assistant Secretary of the Army (Installations, Energy & Environment)
• The EITF anticipates leveraging a Multi-Award Task Order Contract (MATOC) for PPAs
– RFP plan for release in CY1Q2012 with anticipated award in CY1Q2013 by the USACE (HNC).
– Up to 30-year PPA term
– Small Business participation consideration
– Structured to create greatest competition
• Additional single project procurement actions will be considered.
Acquisition Approach (cont’d)
Energy Initiatives Task Force UNCLASSIFIED 34
Assistant Secretary of the Army (Installations, Energy & Environment)
• The goal of the EITF is to increase Army
installation energy resilience in a cost-
effective way.
• DOD Instruction 4170.11 (11 DEC 09)
states that renewable energy may be
purchased for a “fair and reasonable”
premium.
Energy Security vs. Affordability
Energy Initiatives Task Force UNCLASSIFIED 35
Assistant Secretary of the Army (Installations, Energy & Environment)
• The EITF will utilize the Army
Environmental Command (AEC) to
perform National Environmental Policy Act
(NEPA) assessments for projects.
• The EITF will fund NEPA actions as
required to address cost and schedule
risk.
Environmental Assessments
Energy Initiatives Task Force UNCLASSIFIED 36
Assistant Secretary of the Army (Installations, Energy & Environment)
Phase 0
Project Solicitation
Project Validation
Project Negotiations & Closing
Opportunity Identification & Due Diligence
Post-Closing Management
Phase 1 Phase 2 Phase 3 Phase 4
Renewable Energy Project Development Guide
Project Development Process
The EITF is producing a process for developing large-scale
renewable energy projects that is clear, consistent and
transparent. This process will be described in a Project
Development Guide that will detail the five phases of project
development.
Energy Initiatives Task Force UNCLASSIFIED 37
Assistant Secretary of the Army (Installations, Energy & Environment)
Potential
Renewable
Energy
Opportunities
Stage 1
Structured Process for Identifying Opportunities
Site
Assessment
Stage 2 Stage 3
Stakeholder
Buy-in
Stage 4
Project
Charter
Stage 1 validation with
installation SMEs
Site visit/walkthrough:
siting determination
Preliminary stakeholder
meetings (including
utility)
State regulatory, policy, market, and
renewable resources
Installation land availability, GIS, and
master plan review
Mission & environmental impacts
Financial viability across alternative
financing contracts
Project development risk factors
Stage 1
Project concept vetted
Project deconfliction
(mission compatibility,
NEPA scoping)
Stakeholder analysis
and mitigation plans
Stage 3
Project charter
signing
Army stakeholder
approval
Execution Team
formulation
Stage 4
Increased due diligence and decreased risk early-on, through incremental analysis and
buy-in – resulting in a viable, defined and well-supported project
Energy Initiatives Task Force UNCLASSIFIED 38
Stage 2
Initial
Opportunity
Screening
Assistant Secretary of the Army (Installations, Energy & Environment)
Current Opportunity Assessments
Energy Initiatives Task Force UNCLASSIFIED 39
Assistant Secretary of the Army (Installations, Energy & Environment)
Questions and Answers
Energy Initiatives Task Force UNCLASSIFIED 40
Learn More at www.armyeitf.com
Assistant Secretary of the Army (Installations, Energy & Environment)
AMERICA’S ARMY: THE STRENGTH OF THE NATION
ARMY STRONG
41
Review of the Draft RFP
Review of the Draft RFP
• Objective
• Deliverables
• Contract logistics
• Upcoming milestones
Objective
• To procure locally generated renewable and alternative energy using PPA or equivalent; there is no intention of acquiring generation assets
• The contractor: develop, finance, design, build, operate, own and maintain plant
• Project locations may be on or near govt property
Deliverables
• 001: Solar- PV or CSTP PPA- 3 years, 7 options • 002: Wind PPA- 3 years, 7 options • 003: Biomass PPA- 3 years, 7 options • 004: Geothermal PPA- 3 years, 7 options • 005: Minimum Guarantee- $500 • Other Alt. Energy Technologies will be considered (C.4.f. p
26) • “The Contractor shall furnish all labor, materials, tools,
equipment and incidentals necessary to supply and deliver utility service to the location specified in the Task Order from a Contractor-owned renewable or alternative energy system, in accordance with the Performance Work Statement “
Contract Logistics
• Multiple IDIQs- portion set aside for Small Business • Task Orders awarded against basic IDIQ using fair
opportunity procedures • Task Orders will be Firm Fixed Price • Minimum of $500, maximum of $7.0 B over 10 years • Every 18 months the Govt will re-evaluate market-
and may “on-ramp”: advertise for and accept proposals
• Task Orders: IFPs by technology of offeror selected
• Reference: FAR 16.505 and DFARS 216.505-70
Small Business Set-Asides
• If the Task Order is for production of: • 4MW-12MW: The Contracting Officer will first
consider a Small Business Set-Aside – CO will request a letter of interest from Small
Businesses- 2 or more responses will result in a Small Business Set Aside
• Under 4MW: Reserved for Small Business – Will become unrestricted if no acceptable proposals are
received
• 50% Small Business Participation Goal
Upcoming Milestones
• Comments on Draft RFP –Deadline: March 21, 2012
• Pre-proposal Conference- includes presentation on RAE program, scope of work, and Q and A session –TBA in Final RFP
• Final RFP- TBA
Teaming for Government
Contracts
www.smithlaw.com
©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
Traps and Tips:
Subcontracts and Joint Ventures
Presented By:
Smith, Anderson, Blount, Dorsett,
Mitchell & Jernigan, LLP
www.smithlaw.com
(919) 821-6755
(919) 821-6688
www.smithlaw.com
©2011 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
Joint Venture v. Prime/Subcontract
• JV: “[C]ompanies form a partnership or joint venture to act as a
potential prime contractor” FAR 9.601(1).
– “Partnership”
• Prime contractor contracts with government. FAR 9.601(2).
– Prime subcontracts with other team member
– No “privity” between the government and subcontractor
51
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©2011 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
Pros & Cons
• Pros
– JV member has increased stature (vs. subcontract)
– Shared control
• Cons
– Joint responsibility for performance (vs. subcontract)
– Lead/Larger team member gives up some control to other
team member
– Termination/unwinding JV more complicated
52
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©2011 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
Drafting tips and techniques
• Have a written teaming agreement (RFP)
• Identify the contract you are bidding on
• Require the prospective team member to be awarded
subcontract instead
• Have subcontract terms well-negotiated before submitting bid
– Divide team member functions
• Who will prepare proposal? Who will pay for it?
53
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©2011 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
Drafting tips and techniques
• Non-poaching, non-compete, non-solicit?
• Exclusivity?
• Confidentiality?
• Consider favorable choice of law provisions?
– Forum Selection? Arbitration/mediation?
• If there is termination, who owns the confidential data or the
intellectual property?
• If there is a dispute, will one party indemnify another?
54
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©2011 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
Drafting tips and techniques
• Preference contract?
– Identify the preference, state the percentages
• SBA approval required?
– Make contract subject to SBA approval
• Termination:
– If one side decides not to pursue the contract
– Government disapproval of sub
– Government non-award or cancellation of RFP
– Suspension/debarment/proposed debarment
• Impossibility; mutual agreement; default
55
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©2012 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P.
Questions?
Smith, Anderson, Blount, Dorsett,
Mitchell & Jernigan, LLP
www.smithlaw.com
(919) 821-6755
(919) 821-6688
Background Information for Responding
to the Future RFP
Best Value Procurements
Continue to procure MATOCs and SATOCs
Increased use of Standalone Acquisitions
Increased use of Regional/Local Contracts
Acquisition Trends
The New Reality for Defense Primes
Shorter timelines. Strict contract terms. Greater value.
LEED construction Mandates.
The Department of Defense (DoD) is overhauling the way it
acquires products and services, and it’s changing the rules
that dictate how defense primes conduct business. There is
a huge paradigm shift taking place in all Federal
Construction.
Defense Primes are now moving to a strategic partnering
paradigm. Instead of managing dozens if not hundreds of
vendors for a project, focus on the several who can deliver
true business value. This provides Primes with flexibility
and lowers fixed costs.
Where’s the Box Top to the Puzzle?
Large Scale Wind Energy Generation
1. Sustainable Technology: •Technologies desired are those that have the smallest environmental impact. •Describe any potential impacts of your technology that could be limiting for
environmental or safety reasons. For example, issues associated with flying
wildlife, noise production, radio frequency or other electronic noise generation,
acoustic noise, etc. •Describe your technical approach to utilize large scale wind to generate a rated
power of <50 MW. Please state general design criteria including size and height
of the turbines, foundation requirements, etc. Note that the supporting facilities,
such as roads and electrical transmission, are limited or non-existent in many
areas of the installation where wind production could be implemented. •Would inclusion of 30 miles of transmission lines and temporary road
development, as part of the project, eliminate the economic viability of a wind
farm <50MW? •The Army is in the process of conducting programmatic National
Environmental Policy Act (NEPA) analyses for renewable energy generation. It
will be the responsibility of the developer to fund and coordinate any additional
site-specific NEPA actions for the proposed facility that may be required.
2. Excess Electrical Production •Describe the approach for regulatory issues and other agreements that need to
be addressed for the developer to be able to sell excess power production. •Is there an economically feasible and reasonable cost of electricity under a
Power Purchase Agreement (PPA), or similar instrument, for a project that does
not sell excess electricity? •Describe the approach for the regulatory issues regarding power generation on
federal land in that state and transmission of power for consumption on
contiguous federal land in the state and vice versa.
3. Financing •The Army intends on pursuing project financing methods where the Army
provides the land and access as well as a consumer of the electricity, but allow
the developer to provide the upfront capital to develop and install the equipment.
The investment is paid back by the Army purchase of electricity over 20+ year
timeframe. •Is the PPA contractual vehicle to secure private capital to build electrical
generation on federal land with a guarantee of electrical power purchase by the
federal government a viable option in the regulatory environment of this area?
•What opportunities exist for the use of Extended Use Leases, Energy
Savings Performance Contracts, Utility Energy Savings Contracts, or
other potential authorities that allow public-private partnerships to
obtain private capital to develop technology on Army land that is paid
off over the long term via energy savings or direct purchase of the
commodity?
•If DOD decides to pursue acquisition of these technologies,
competitive future proposals would have the cost of electrical power
to DOD would be lower than or equal to the current grid electrical cost
(FY2010 blended rate of $0.06/kw-hr) and would allow for Army to
retain all Renewable Energy Credit (REC) certificates. If this is not
viable, what is the best cost of power that can be expected for the
technology?
Solar Technology: •Describe the technology you would recommend. Do you consider this a
commercial technology? If not what barriers have to be overcome to achieve
commercial status? •Technologies desired are those that have the smallest environmental impact,
including water usage. •Describe any potential impacts of your technology that could be limiting for
environmental or safety reasons. For example, issues associated with panel
reflectance and air traffic, concentrating solar energy, noise production from
the operation of Stirling cycle generators, radio frequency or other electronic
noise generation, etc. •For energy generation (assuming sufficient, available, and NEPA vetted land
and appropriate distribution tie in were available), describe the technical
approach of the project to provide electricity for the training areas noted in
Table 1. Assume standard grading and land preparation and 1.5 kilometer
distance to the grid tie in. •What is the minimum size CSP trough plant (in MW) that would be
considered economically viable to develop and finance? •The Army is in the process of conducting programmatic National
Environmental Policy Act (NEPA) analyses for renewable energy generation.
It will be the responsibility of the developer to fund and coordinate any
additional site-specific NEPA actions for the proposed facility that may be
required.
Given Conditions for Geothermal Development
•Geothermal resource is accessed on Bureau of Land Management withdrawn lands for
the US Army
•Water temperatures between 170 degrees to 190 degrees Fahrenheit
•Assume sufficient flow, water table level and heat recovery (please specify what you
would consider sufficient)
•Well depths of roughly 2000 to 4000 feet
•Target generation capability from this resource is up to 20 MW
•The overall objective is to answer the question: Given the above conditions, what technologies and strategies are available to produce near base load electrical power from this geothermal source?
. Sustainable Technology: Mid to Large Scale Energy Storage
•Technologies desired are those that have the smallest environmental impact, including water
usage. •Describe any potential impacts of your technology that could be limiting for environmental or
safety reasons. For example, issues associated with hazardous chemicals and other materials,
potential for catastrophic failure of high energy density systems, radio frequency or other
electronic noise generation, ambient acoustic noise, water use, mechanical hazards, etc. •Describe the carbon dioxide (equivalent) output of greenhouse gases from your technology
approach. •Describe the technical approach to achieve 0.5 to 10MWh increments that could be utilized to
provide energy storage at distribution voltage (13.8kV) that comes from the utility grid and/or
intermittent renewable energy sources such as photovoltaic panels, concentrating solar thermal-
electric power, and wind. •The Army is in the process of conducting programmatic National Environmental Policy Act
(NEPA) analyses for renewable energy generation. It will be the responsibility of the developer
to fund and coordinate any additional site-specific NEPA actions for the proposed facility that
may be required.
2. Technology Maturity
•With respect to the Department of Defense (DoD) Technology Readiness
Level (TRL) scale, what is the maturity of your energy storage technology?
•What is the footprint of your system (include all system components) in terms
of acres/MWh or ft2/MWh, as appropriate?
•What is the control method / processes that you use to charge and discharge
your system?
•What is the operation and maintenance requirement for your system?
•What is the expected availability of your system?
•What is the expected lifetime of your system or number discharge/recharge
cycles? This may be described in the lifetime and replacement frequency for
specific system components, if needed.
•What is the viability of your technology as applied to distributed (building
scale or clustered buildings and microgrids) and large scale (50+MW-hr)
energy storage?
•What is the charge time to nominal capacity for your storage?
•What is the discharge rate (amps)? Is this rate variable (minimum and
maximum rate)?
•What is the commercial history of your technology?
3. Financing / Economic Feasibility
•What is the Rough Order of Magnitude (ROM) cost range per
megawatt-hour associated with your energy storage technology?
Large scale photovoltaic systems have demonstrated $3M-$4M/MW
installed costs. What would be the impact of adding 50% energy
storage to a large scale photovoltaic plant (assume 20MW total peak
production)?
•Given the willingness of the Army to consider public-private ventures
to finance energy projects, what ideas do you have with regard to
private financing of energy storage projects through contracting
instruments such as Energy Savings Performance Contracts (ESPC),
Power Purchase Agreements (PPA), Enhanced Use Leases (EUL),
etc.?
Discussion, Questions and Networking
Contact Information
• Scott Dorney, Executive Director, 910-678-0190, [email protected]
• Bill Greuling, Program Manager, Business Development, 910-578-2626, [email protected]
• Anne Campbell, Business Development, Energy, 910-938-6785, [email protected]
• Carolyn Bunting, Program Manager, Technology, 910-578-2579, [email protected]
• Mickey Finn, Program Manager, Strategic Initiatives, 910-390-4011, [email protected]