Solar Joint Ventures
Tesla leadership learned first-hand of the high cost of delivering energy on the battlefield. While casualties in war are unavoidable, losses incurred just to keep the air conditioners running are unacceptable. We learned that solar power can be a practical and logistically light-weight solution to provide energy on FOBs. Using these wartime experiences, Tesla decided to develop solar solutions for DoD and other government customers.
The DoD has set a goal for itself of being 25 percent renewable by 2025 - the so-called 25-by-25 initiative. As part of this goal, the US Army Corps of Engineers (USACE) developed a contract vehicle to provide renewable solutions to DoD customers using a Power Purchase Agreement (PPA) model in which the customer enters into a long-term contract to buy electricity from the provider on a per kW-h basis.
Tesla wanted to enter into this business area but lacked the past performance to be a credible bidder. So we did what any good government contractor would do, we formed a Joint Venture (JV). Tesla teamed with T-Solar which was a major Spanish solar company to develop solar solutions for the US Army and other federal customers. Through this JV, two solar energy companies were formed - Energy Matters LLC and Solar Power Ventures LLC. Energy Matters qualifies as a small business under the FAR and is focused on smaller opportunities less than 12 MW and Solar Power Ventures is a large business under the FAR due to a partial ownership by T-Solar and is targeting 12+ MW opportunities.
When USACE issued the $7B Multiple Award Task Order Contract (MATOC) for Renewable Energy PPAs, Energy Matters bid as a small business and Solar Power Ventures bid as a large - both companies won awards September 2013. As a result, for a ten-year period both companies can bid on renewable energy projects in the DoD space. The following are a more detailed description of the two companies:
Energy Matters LLC. Energy Matters LLC was formed to pursue DoD, State and other municipal government solar opportunities. As a small business awardee of the $7B USACE MATOC for solar PPAs, Energy Matters is eligible to develop solar solutions for the Army and other federal customers. Additionally, Energy Matters won a 4.3 MW solar project for the PA National Guard in Fort Indiantown Gap and a 5.5 MW project for Saint Mary's County, Maryland.
Solar Power Ventures LLA. Solar Power Ventures is the second half of Tesla's partnership with T-Solar. Like Energy Matters, Solar Power Ventures won the USACE MATOC for solar PPAs but as a large business. Hence it is restricted to only purse larger opportunities that 12+ MW.