Five firms compete for $200m Navy solar contracts

March 4, 2010

The Navy wants to source 50% of its on-shore energy from renewables by 2020

Five solar power companies are vying to develop up to 40 megawatts of solar photovoltaic projects for the US Navy, with up to $200 million up for grabs.

Naval Facilities Engineering Command has shortlisted SunEdison, AECOM Energy (in partnership with Solar Power Partners, Inc.), SunPower Corp, SunDurance Energy and Chevron Energy Solutions for the projects.

All five projects will be in the South West, with the first three to be developed in California this year.
Under an overarching multiple award contract (MAC), the shortlisted companies will compete for each individual project, ranging from one megawatt to 15MW in scale.

All projects will be awarded within five years, although the first three, to be located in California, are expected to be awarded this Spring, to be operational later in 2010.

The solar facilities will all provide power for the Navy or Marine Corp bases on which they are located, with an expected 30-year lifespan.

Nate Butler, NAVFAC Southwest Renewable Program Office team leader, said: “These projects will generate clean energy for our military bases, lower our electricity bills, and help to reduce our dependence on fossil fuels.”

PPA

Under the terms of the Navy deal, the developers of the projects will construct, own, operate and maintain the systems, providing power to the bases through long-term power purchase agreements. The Navy would put in no initial capital investment under the arrangements.

“The great thing about a PPA contract is that the government buys power from a solar generation system that is financed, owned, and operated by the developer,” said Mr Butler. “The Navy and Marine Corps get green power with no initial capital investment.”

The solar project follows last October’s directive from the Secretary of the Navy to source at least 50% of the Navy’s shore-based energy demand from renewable sources by 2020.

The goal has been set to increase the Navy’s energy security, as well as benefiting the environment.

Chris Tindal, acting deputy assistant Secretary of the Navy for Energy, said: “We need bold, innovative measures, and this initiative that NAVFAC Southwest has taken on, will move the Department of the Navy’s entire energy program closer to the target.”