Sandia’s PV News: Possible Procurement for Remote Power

(Forwarding note about renewable funding source…)


Subject: Sandia’s PV News: Possible Procurement for Remote Power
Date: 18 Mar 1998 16:54:03 -0700


Last year, the Congress passed legislation, as follows:

“Federal buildings/ Remote power initiatives — The House and Senate each included proposals intended to direct the Department (of Energy) to identify and pursue near term opportunities to exploit the strengths of solar and renewable energy technologies. The conference agreement includes both initiatives and provides $5,000,000 for these activities. The Department is directed to provide the House and Senate Committees on Appropriations with a program plan which includes a funding profile, and criteria for awarding proposals. All proposals must include a cost benefit analysis. The Department may approve only proposals that have verifiable, favorable cost benefits over a period of not more than ten years. Cost benefits shall be based exclusively on actual monetary costs and savings.”

As part of its response to this legislation, the Department of Energy issued a procurement through its State Energy Program office for up to $1.2 million in cost-shared projects, with the Department’s share being 25% of the cost, awarded in the form of a grant. The proposals that were submitted total substantially less than the available funds, so the Department is considering reissuing the procurement. The Department has asked for our assistance in publicizing this opportunity. In particular, we feel that the renewable energy industry may bring projects that would meet the procurement requirements to the attention of the states.

It is our understanding that the procurement requires that proposals be submitted through offices of state government, but does not require state matching funds. All matching funds could be provided by a private party for a privately-owned project as long as the state were willing to participate in proposing the project to the Department.

We would like feedback on whether there is sufficient interest in these projects to justify reissuing this call for proposals. Also, we are interested in feedback on the content of the statement of work below. Note, however, that the ten-year cost/benefit period is a requirement of the legislation. Please reply to this e-mail or via the phone numbers listed below.

The complete procurement may be found at

Only 6.52 is proposed to be reissued.

Total Funds: At least $1.2 million Estimated number of projects: 12 or more
Match: 300%; higher leveraging encouraged

In much of the developing world, and portions of the U.S., the costs of electricity transmission and distribution systems are prohibitive. As a result, large amounts of electricity, heating and cooling is provided by comparatively expensive and polluting diesel equipment or gasoline. In many cases renewable energy technologies are cost-competitive, but underutilized because of lack of consumer acceptance or reliability. This solicitation focuses on applications of renewable energy for remote energy needs, to demonstrate cost-effective, modular technologies as reliable, easy to operate, and easy to maintain.

Projects Requested in FY 1998:
Grants are available for design, purchase and installation of renewable energy technologies including solar hot water (SHW), where they would displace or avoid the use of diesel fuel or gasoline.

Examples of remote applications could include island mini-grid systems that supplement or displace existing or planned diesel/gasoline generation, or end-of-line systems or off-grid applications that could not be cost-effectively served by line extensions. All projects must monetary cost/benefit ratios over an analysis period of 10 years or less. They must also include an estimate of avoided or displaced fossil fuel generation, and an estimate of the number of similar applications that might be possible. Projects that demonstrate new products or applications that have a significant future market potential are desired. Examples could include products that also renewable energy technologies like PV and SHW systems that combine heat and electricity services, or projects that demonstrate new applications like telecommunication services for off-grid or remote areas.

Evaluation Criteria:
Value in demonstrating a viable application of renewable energy that can be replicated at other sites, including the number and size of potential applications. (30%)
2) Technical quality of plans for system design, operation and maintenance. (20%) 3) Cost sharing above the 300% match requirement. (20%) follow-up plans for disseminating results and lessons learned within the State, and/or nationally. (10%) 5) Demonstration of new technology or applications to advance consumer acceptance and/or reliability, for example building integration, or new types of services for an area. (10%) 6) Value of displaced diesel or other fossil fuel generation and other


Sandia PV Projects
(505) 844-3698 (phone)
(505) 844-6541 (fax)

Sandia is a partner in the National Center for Photovoltaics (NCPV). Work performed at Sandia National Laboratories on behalf of the NCPV is funded by the U. S. Department of Energy, Office of Photovoltaic and Wind Technology, James Rannels, Director.

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