Guest Post from Mr. Daniel Gore, Energy Program Manager (CG-4):
On April 1st, 2010, the 875 kW solar photovoltaic (PV) array at TRACEN Petaluma cleared its final milestone and officially went live. This project is the largest solar PV project in the Coast Guard. It is the first time the Coast Guard has implemented a Power Purchase Agreement; a process that may prove increasingly effective in meeting statutorily mandated renewable energy goals.
Over two years in the making, the project was led by Petaluma senior engineer Tony vanWinden in partnership with the Coast Guard Energy Program, attorneys, contracting officers, financial analysts, technical staff, and numerous other critical personnel nationwide.
The project consists of 5,232 panels with a peak output of 875 kW and an expected annual generation of 1.5 million kWh. The project is expected to save the Coast Guard 1.5 million dollars in energy costs over the life of the project, while preventing over 2 million pounds of greenhouse gas emissions annually.
As previously stated, the project was executed as part of an alternatively financed 25 year Power Purchase Agreement (PPA), the first of its kind for both the Coast Guard and the Department of Homeland Security. The contractor will own and operate the array, selling electricity to Petaluma at a known rate through the contract period. The contractor will claim tax benefits associated with renewable generation while the Coast Guard earns the renewable energy credits, which count towards statutory requirements. Coast Guard cost savings are realized through reduced cost of electricity and reduced peak demand charges.
The project had to overcome many hurdles, the last of which revolved around the negotiation of an electricity interconnect agreement with the local utility. That hurdle was cleared on April 1st, allowing the project to go live. The lessons learned during this project will serve to facilitate future Coast Guard energy projects.
Congratulations to the entire project acquisition team!
