1 STAFF REPORT
DAT
E: April 12, 2022
T
O: Justin Hess, City Manager
F
ROM: Dawn Roth Lindell, General Manager, Burbank Water and Power VIA: Riad Sleiman, Assistant General Manager, Electric Services Division BY: Michael Wang, Senior Electrical Engineer
S
UBJECT: Update on the Solar and Battery Project at the Hollywood Burbank Airport Regional Intermodal Transportation Center
RECOMMENDATION
Note and file.
BACKGROUND
As part of the Solar and Battery Project (project), Burbank Water and Power ( BWP) is planning to construct a photovoltaic generation plant with energy storage at the Hollywood Burbank Airport R egional Intermodal Transportation Center (RITC). The project will be completed using the most cost-effective approach to optimize the available 4-acre roof space. The expected project size is 2-2.5 megawatts with at least 4-hour energy storage capability, which is equivalent to supplying power to about 560 households or 50% of the airport terminal’s load.
R
enewable energy from the project will feed directly into BWP’s 12 kilovolts distribution system, and BWP will count the energy produced towards meeting Burbank’s renewable energy and greenhouse gas reduction goals. BWP will also use this opportunity to observe the various effects of large -scale distributed generation on BWP’s distribution network and provide an opportunity for the utility to demonstrate to the public its commitment to carbon free energy generation. The project will be a source of civic pride and highly visible to all airline passengers as a representation of the C ity of Burbank’s (City) commitment to sustainability and strong partnerships , such as the one with the Hollywood Burbank Airport.
2 During the 2010 update to the Development Agreement for the Hollywood Burbank Airport, the City foresaw an opportunity to partner with a key member of the community to help advance the City’s sustainability goals. The updated agreement allowed BWP the rights to build a solar and battery project at the RITC.
Since then, BWP has performed two preliminary studies addressing project feasibility and electric grid impact. The feasibility study outlined industry accepted technologies and practices for a photovoltaic generation plant. It also described what BWP could expect for general design, cost, and overall feasibility. Results of the study showed rooftop solar could be an economical and cost -effective means of in-territory generation and that the site was suitable for a photovoltaic generation plant. Nothin g was discovered that would prevent construction of the project. The grid impact study simulated the project’s grid effect under adverse operating conditions, and it was determined that there would be no impact. An updated grid impact study will be completed after the selection of a proposed design to consider current system configuration. Installing solar at airports is a proven concept, with hundreds of installations across the U .S. and numerous studies and advisory papers available for guidance. Additionally, adding an energy storage component to solar projects has become the new industry norm as energy storage technology has improved, become more cost effective, and renewable resource availability has become a larger industry issue.
DISCUSSION
The 2040 target date, adopted by the City Council, for full carbon free generation is quickly approaching. BWP has determined that to meet this objective, it will be critical to explore a wide variety of renewable generation. Pointedly, it is important that both in-territory and out-of-territory renewable generation are part of the renewable generation strategy . In- territory generation is defined as any generation within the City limits and does not require use of outside transmission lines; these transmission lines are in high demand and short supply. The airport provides a unique opportunity to install a relatively large in- territory renewable generation asset where large areas of land are priced at a premium.
As in-territory generation, especially in the form of smaller distributed generation sites such as rooftop solar, becomes more prevalent, it will be important for BWP to have an understanding of how to integrate and coordinate the generation from hundreds of in- territory distributed generation sites. This project will provide real -world data and experience to the system operators and engineers as well as help inform future investment in this area. For example, adverse weather conditions like heavy cloud cover often create unreliable renewable generation conditions. BWP will be able to study these effects and the response of the energy storage system to better understand the type of resiliency these types of systems can provide. BWP will also be able to observe the installation and receive equipment training on the special high voltage DC systems used 3 in these solar generation systems and apply this knowledge to installing or maintaining future systems.
BWP is developing a R equest for Proposal ( RFP) for this project with aid from experienced consultants. Initial glint/glare and feasibility studies will be conducted that will enable BWP to develop a complete RFP. The RFP is expected to be advertised in July 2022, and we expect to have an agreement for City Council approval by February 2023. Design and construction of the project is expected to begin in March 2023 and continue until January 2025.
FISCAL IMPACT
The solar and battery storage project is expected to cost $10 million and is budgeted for the fiscal year 2022-2023. The project cashflow is as follows: fiscal year 2022-2023- $1M, fiscal year 2023-2024- $6M, and fiscal year 2024-2025- $3M.
Only capital costs are included in the budgetary numbers . Operation and M aintenance costs estimated at $56k annually will be included in the five and ten-year budget forecasts for the life of the project, typically 20-25 years.
While most calculations for energy cost consider a 20-year life, typical panel degradation will leave the project with 90% generating capacity at the end of 20 years. Since the asset cost recovery will be complete at that time, any continued generation will provide additional value to BWP customers.
There is an estimated average annual savings of $500,000 from avoi dance of transmission use and renewable energy purchase, which would pay for the system over a 20 -year cycle. In addition, BWP avoids using sub- transmission, substation, and distribution capacity that would otherwise be used for other major developments i n the area.
CONCLUSION
The future is bright for the City as we continue to strive towards a more sustainable energy infrastructure. The RITC Solar and Battery Project will help advance the C ity’s goals for providing 100% carbon free energy generation by 2040. It will lay much of the groundwork for future projects within the C ity and prepare the utility to be able to strategically implement future in-territory generation and storage facilities.
ATTACHMENT
Attachment 1 – Regional Intermodal Transportation Center Solar and Battery Layout