Cyclone Power Technologies is forging ahead into the microgrid industry with a sizable potential investment. The energy tech company is entering into a 10-year, $11 million dollar power purchase agreement (PPA) for its first microgrid.
The microgrid, which will be designed to provide over 3 MW of electricity, has a scheduled installation date for the first quarter of 2019. It’s purpose? To provide backup power and more for 365,000 square feet of medical facilities in Palm Beach County, Florida.
On top of the 3 MW of electricity, the microgrid will also provide hot water and 72 hour storage backup using Cyclone’s thermal storage units for the aforementioned facilities.
The PPA — a type of agreement that is making microgrid deployment easier for many — provides for 10 years of power at a discounted rate. Here’s where the $11 million number comes in; that’s the estimated value of the power that will be provided over the next decade.
Cyclone Power Technologies also shared a few elements that might make this microgrid unique. For example, the system will include the company’s solar collectors that are designed to be “hurricane resistant,” as well as its Cyclone Mark 10 engine, which will provide power for the microgrid’s generator system.
In fact, the Mark 10 engine is one of the key elements of Cyclone’s decision to enter the microgrid market.
“Cyclone has worked almost ten years to build a product that could deliver a competitive, reliable patented solution with broad applications,” said John Flynn, consultant to the Cyclone Power Technologies’ board of directors. “When the Cyclone Mark 10 launches, estimated in late 2018, it can allow Cyclone to feel confident entering into the microgrid marketplace, which is predicted to grow from an estimated $1.4 billion dollars currently to an approximate $17 billion dollars in 2025 according to Grandview Research.”
As for future plans, Cyclone Power Technologies says it is in discussion with a number of bank and finance sources who have indicated they will provide capital that would enable companies signing a 10-year PPA to install a microgrid with zero capital outlay.
These agreements, as well as alternative microgrid financing such as the microgrid-as-a-service option, will serve to make microgrids a more universal option for today’s backup and emergency power needs.
Policy is also serving to shape and grow the microgrid industry. In fact, Cyclone president Frankie Fruge pointed out that Florida law actually now requires alternative power solutions for all elderly facilities.
“Florida passed SB 7028 recently, which ratifies a Department of Elderly Affairs rule to ensure that assisted living facilities have an alternative power source,” Fruge added.
And this is just one mandate of many that will serve to create opportunities for microgrid facilities, and in turn, increase energy resilience and reliability.
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