Strategic Initiative Large Scale Solar Photovoltaic Development at Dulles International
As noted , we are partnering with our utility , Dominion Energy , to determine the feasibility of developing up to 100 MW of solar photovoltaic ( PV ) generation on more than 1,000 acres of available land we have at Dulles International . In 2019 , we formalized this partnership and feasibility studies are underway now which include an analysis of the potential to include battery energy storage in the project for enhanced grid reliability . Dominion will be financing the project . While all the electricity generated by the solar farm will likely be fed directly into the utility grid for region-wide distribution , we are evaluating options to purchase some amount of electricity for our own airport operations . Regardless , it is a very exciting and public demonstration of our commitment to the environment , supports Dominion Energy with their clean energy and GHG emissions reduction goals . Our partnership with Dominion Energy is also indicative of our broader renewable energy strategy as we carefully manage our resources . We will look for opportunities to partner with third parties who can use the tax credits ; enter into power purchase agreements ( PPA ); and explore avenues for monetizing our available land through land lease arrangements to minimize capital expenditures with equivalent or better results .
Best Practices Opportunities Solar Energy and Battery Storage at Reagan National
Given Reagan National ’ s limited geographic footprint , large-scale solar such as we are pursuing at Dulles International is not feasible . However , there are opportunities for smaller and more targeted solar installations on various rooftops across the facility . On behalf of the Authority , NREL conducted a sitewide analysis of Reagan National to determine how much solar we could install across facilities as well as the costs and benefits of doing so . NREL also included opportunities for battery energy storage in their analysis to determine if we can add resiliency elements to any potential solar investments along with potential for reducing electricity demand charges . We understand that with current grid modernization , energy storage near major users is becoming a key element in efficiency and rate management . The preliminary results of the NREL analysis , summarized below , indicate that there are cost-effective opportunities to deploy both solar and battery storage at Reagan National primarily due to the ability to reduce our billed energy demand charges at the airport .
Technoeconomic Results for Solar-Plus-Storage at Reagan National
There are opportunities for us to stabilize our electricity costs by reducing demand charges and possibly add resiliency benefits to our facilities at Reagan National through investments in solar and battery energy storage . The return on a direct investment of Authority capital in this area is very low with resiliency benefits , and stabilization of demand charges a qualitative factor not currently quantified in relation to return on investment . Based on current utility rate structures and other assumptions , approximately 900 kW of solar PV with 200 kW of battery storage could be installed at Reagan National . Over a 25-year time frame , this project could provide an estimated net present value benefit ( NPV ) of approximately $ 700,000 if connected to the South Substation . 900 kW of solar would occupy less than 4 % of the current 2,400,000 square feet of roof space at Reagan National . In addition , installing 400 kW of grid-charged battery energy storage ( without solar ) would have a ( NPV ) of approximately $ 600,000 if connected to the North Substation . However , the projected total electricity savings over this 25-year analysis period is less than 1.5 % of our projected electricity costs without investments in solar and storage . As a result , given what would be a capital investment exceeding $ 3 million dollars , pursuing third party finance and ownership options makes more financial sense for the Authority .
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