Tesla Laboratories, Inc.

Solar Solutions for Military Installations

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Author

Oxana Miller

Oxana Miller

School

Case Western Reserve University - Weatherhead School of Management

Case Western Reserve University - Weatherhead School of Management

Professor

Chris Laszlo

Chris Laszlo

Global Goals

7. Affordable and Clean Energy

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Summary

  • Integrated solution for solar project development
  • Renewable energy for military installations

Innovation

In general, solar power solutions are accepted as an efficient way to reduce fuel consumption. When applied to the military setting specifically though, we can see their list of potential benefits expand. It was during the mobilizations and deployments of Tesla’s founder to Iraq that they learned of the “high cost of supplying diesel to produce electricity for the Warfighters, as well as the potential for national security threats should there be an interruption in the supply of the heavily relied upon petroleum based fuels.” In response to these observations, Tesla/Energy Matters (EM) developed solar power solutions to mitigate the consumption of diesel in the battle space, thereby reducing traffic on the roadways and casualties from insurgent attacks. These solutions include ground mounted solar, rooftop solar, Prime Power Generator Augmentation (PPGA), and Tactical Quiet Generator (TQG) augmentation, which will be further discussed.

The costs associated with the conversion to renewable energy solutions in Department of Defense (DoD) applications are large, and the matter in which this company finances these operations are worth mentioning. We’ll use the example in which Energy Matters competed and was awarded the US Army Corps of Engineers Multiple Award Task Order Contract (MATOC) for Solar Energy Power Purchase Agreements (PPAs). According to Tesla’s founder and president George Stejic, Ph.D., “Through this contract vehicle, Energy Matters can bid on the 3,000 megawatts worth of solar projects that will be developed by the DoD over the next decade. Contractors that are awarded task orders under the MATOC will receive no monies from the DoD customer, instead they finance the construction of the project through private sources and recover the investment by selling electricity to the DoD customer over the life of the twenty-plus-year PPA.” There is no initial financial burden to government, who is then ultimately rewarded with access to efficient and renewable energy alternatives.

Solar Solutions for Military Installations

Inspiration

Tesla’s founder and president George Stejic, Ph.D. (who was born in Yugoslavia) moved to the U.S. at a young age, and it was here that he earned B.S. degrees in both Chemistry and Electrical Engineering, as well a Ph.D. in Condensed Matter Physics. He served in the U.S. Army Reserves from 1986-2015, and retired with the rank of Lieutenant Colonel. His company’s passions stem from his multiple mobilizations and deployments to Iraq. This is where he learned of the high costs of supplying diesel fuel to produce electricity for these military installations. As well, he learned about the safety threats posed to both military personnel and the civilian population from IED detonations and insurgent attacks against convoys (containing large amounts of highly explosive diesel fuel). He envisioned solar power solutions as a “safer, more cost efficient energy alternative in this environment.”

Overall impact

Solar power solutions are a practical and efficient way to reduce fuel consumption. According to Stejic, this following explanation is a simple observation. “While the initial logistical cost of installing a solar power plant in a theater is high, the reduction of fuel requirements results in a payback of months. In ten years of war, the reduction of fuel and casualties would have been enormous. Tesla has used this observation to develop several solar power solutions for the Forward Operating Bases in Iraq and Afghanistan. These solutions are ground mounted solar, rooftop solar, Prime Power Generator Augmentation, and Tactical Quiet Generator Augmentation. The first three solutions offer 25-30% reductions in fuel consumption for the bulk of DoD forward deployed sites. The fourth solution incorporates energy storage and can deliver more aggressive fuel reduction, of over 90%, for logistically remote and expensive to operate locations.”

Tesla has also deployed demonstration solar systems to Bagram, Afghanistan, where Tesla delivered a net-zero solution for buildings there by also leveraging better insulation and other energy conservation techniques. These solutions demonstrate that deployed operations can be achieved with solar power as the only source of energy.

Lower cost electricity and savings are also among the project goals of this company, who develop financing solutions in efforts to achieve this. This is done through utilizing their relationships with banks as well as tax equity firms (which help to monetize investment tax credits associated with solar production) to leverage the lowest possible prices, which ultimately save the U.S. Government (taxpayers’) money.

Business benefit

Energy Matters LLC was formed by Tesla to function as an extension of their research and development activities to specifically develop utility-scale solar and other renewable energy projects for military installations. As stated above, Energy Matters won the US Army Corps of Engineers Multiple Award Task Order Contract for solar PPAs, and through that contract, the DoD will procure at least 3,000 MW of solar PPA’s over the next ten years across the U.S. and its territories. According to Stejic, “This places Tesla and Energy Matters at the vanguard of providing the US Military with state-of-the-art solar energy solutions.”

Social and environmental benefit

Tesla/Energy Matters is playing an important role in our country’s continued efforts towards decreasing our carbon footprint. Solar energy is clean. Solar energy is responsible. Solar energy is the future. Additionally, the potentially lifesaving benefits resulting from the use of solar energy solutions in theatres of war and conflict are clearly quite important.

Interview

George Stejic, PhD, President

Photo of interviewee

Business information

Tesla Laboratories, Inc.

Tesla Laboratories, Inc.

Arlington, VA, US
Business Website: https://www.tesla.net
Year Founded: 1997
Number of Employees: 11 to 50
Tesla Laboratories Inc. (Tesla) is a federally recognized Service Disabled Veteran Owned Small Business (SDVOSB), who along with their wholly-owned subsidiary Energy Matters, LLC (EM), are passionately focused (among other projects) on researching and developing innovative energy solutions for the U.S. Department of Defense, in order to reduce our military’s reliance on petroleum-based fuels. This is accomplished through their research, development, and implementation of renewable energy projects, which focus mainly on solar energy applications. Focused efforts on shifting to alternative energy solutions in DoD applications are relatively new, and Tesla/EM is actively contributing to this important endeavor. The benefits achieved in this setting are multifaceted. In addition to the obvious environmental benefits of solar power solutions, there is also the potential to save (both military and civilian) lives, as well as U.S. taxpayers’ money.