Virginia DOT to seek private investment in solar project

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Virginia DOT to seek private investment in solar project

The Virginia Office of PPP (VAP3), USA, has plans to develop and run a P3-driven solar energy system, using Virginia Department of Transportation (VDOT) property and facilities.

The solar energy development project presents an opportunity for VDOT to optimize the use of state-owned property, raise additional funds and become more environmentally responsible. Potential land lease collections, electricity savings and/or revenue sharing provisions are possible sources of value that can stem from the project.

Solar energy systems can be placed on a variety of sites and thus, the technical feasibility is driven in the most part by the characteristics of the site itself. VDOT sites could include: rooftop solar systems; ground mounted solar systems on vacant land or underutilized space; solar canopies over park and ride lots; solar sound barrier walls; and/or any combination thereof.

Four possible business models are under consideration:

  • VDOT buys solar energy produced through a third-party power purchasing agreement (PPA)
  • VDOT collects lease revenue through a land lease agreement
  • VDOT acquires renewable energy certificates (REC), which it would keep or sell to retail power suppliers, creating incentives for reaching established solar energy goals
  • VDOT owns and runs the solar energy facility

The High-Level Screening Report was completed by VAP3 and accepted by VDOT on July 18, 2014. VAP3 issued a request for information (RfI) on January 15, 2015 and responses were due by March 13, 2015.

On 15 May 2015 VAP3 recommended the project be advanced to the project development phase. During this phase, VAP3, in coordination with VDOT and the Department of Mines, Minerals and Energy (DMME), will further refine the project scope, structure and procurement with the goal of accelerating project delivery and maximizing public benefits.

For further reference, consult VAP3's Detail-Level Screening Report for Solar Energy Development:

http://www.p3virginia.org/wp-content/uploads/2015/06/Solar_Detail-Level-Project-Screening-Report_FINAL_ALL-CONTENTS_COM-SIGNED_6.1.2015.pdf
List of country news

Country news

  • June 15, 2015

    Hess announces Bakken Midstream Joint Venture valued at $5.35 Billion

    Hess Corporation has recently announced that it has agreed to sell a 50 percent interest in its Bakken midstream assets to Global Infrastructure Partners, a leading global infrastructure investor with an extensive midstream energy investment track record, for cash consideration of $2.675 billion. Read more
  • June 15, 2015

    Morgan Stanley raises $500m through green bond program

    On June 8, 2015, Morgan Stanley issued a $500 million green bond, which represents the firm’s inaugural offering to fund the development of renewable energy and energy efficiency projects which are anticipated, once fully completed, to help avoid and reduce greenhouse gas emissions. Read more
  • June 16, 2015

    CPV and DGC close financing on 720 MW Valley Energy Center project

    Competitive Power Ventures (CPV) and partner Diamond Generating Corporation (DGC) have announced financial close with MUFG Union Bank and Crédit Agricole for the 720 MW CPV Valley Energy Center project in Orange County, New York (USA). Read more
  • June 17, 2015

    Westar Energy requests renewable energy proposals in Kansas

    Westar Energy, a Kansas’ electric utility, has launched a request for proposals (RFP) for renewable energy projects through power purchase agreements (PPA), among others, to provide generation by the 4th quarter 2016. Read more
  • June 18, 2015

    Macquarie Capital mandated as financial advisor on ZeoGas project debt

    ZeoGas has mandated Macquarie Capital to serve as its financial advisor for the commercialization of its Gulf Coast gas-to-gasoline project in the United States. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.