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DEVELOPMENT OF A METHODOLOGY AND EVALUATION TOOL FOR ASSESSING THE FEASIBILITY OF IMPLEMENTING RENEWABLE ENERGY SYSTEMS AS AN AIRPORT REVENUE SOURCE By DENY DWIANTORO A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY UNIVERSITY OF FLORIDA 2014 1 © 2014 Deny Dwiantoro 2 To Allah: “The only source of all truths where the mankind innate knowledge inherited from; yet, immeasurable” 3 ACKNOWLEDGMENTS Bismillahirrahmanirrahim, firstly, special gratitude to Dr. Charles J. Kibert, PE for being my mentor and guardian with his unlimited encouragement from the starting point I joined the University of Florida. As a mentor, he has been greatly guiding me during my hard time until the completion of the program. As a guardian, he has become my role model since he always supports and directs me in how to keep on the right track during the program. Dr. Ian Flood, my co-chair, who has firstly supported me to enter the program by giving the appropriate paths and directions; Dr. James G. Sullivan, the one who always keeps maintaining my courage also asking my progress and Dr. S.A. Sherif my external committee member from mechanical and aerospace engineering department who gave me “refreshment” in engineering equations at the time of PhD qualifying exam. Mr. John B. Helms II, the Dunnellon Airport manager, your recommendations have helped me out with the methodology improvement and given me lesson learned about the airport conditions. Dean Dr. Christopher Silver, the one who challenged me with GRE test before entering the program, I finally made it at that time. All of you have been performing boundless efforts and patience for my achievement during the program. Secondly, I thank all my editorial team members, Hadyan S. Ramadhan the next Indonesian mechanical engineer from UF, Wayne Foster, Msc and Desy Foster family. You have helped improving my language both written and speaking. My great family in Gainesville James and Aan Morgan ; Hector and Uli Dones; Carlos Maeztu; Debra Anderson; Scott Davis; Dustin Stephany; and, the Indonesian architect, Aditia Mulia Rachman, you all have become my real relatives in the USA. Also, my TN-V and Mesin-ITB 97 special groups, you guys have helped me staying awake and have given 4 continuous amusing conversations during my dissertation writing. I think this is the advantage of having a 12-hour time difference. Thirdly, to all my academia advisors from Institut Teknologi Bandung, Dr. Ir. Aditianto Ramelan; Dr. Ir. Hendrawan; Prof. Dr. Jann Hidajat Tjakaraatmadja, MSIE; and Dwi Larso, Ph.D as well as my industry supervisors from Tripatra Engineers and Constructors (TPEC), Ir. Rushlie Effendy, IPU; Ir. Raymond N. Rasfuldi, Ir. Dikki S. Burhan, IPU and Ir. Asoka Pandji Wisnhu from Petronas. It was all started from the recommendation letters; and, all of you have been maintaining my optimism during my stay in the USA. All in all, my achievement will not be complete without my wife, Shanty Y. Rachmat; and my little one, Denisha Ken Ayu, my father and mother, Koestomo, Msc and Femmy N Daing, my father and mother in law, Dr. Ir. Rachmat Setiadi and Sri S. Soetarso; brothers: Tomy A. Koestomo, Irwan Setiadi, Erwin Setiadi, R. Ersan Keswara; sisters: Silvia P. Koestomo; Yanti Susanti and Mia M. Keswara; the littles: Airel, Aysha in Indonesia as well as my special Kayla in the garden of heaven. A three-year effort has been accomplished. However, the experience I have gained during our stay for more than four and half years in the US will be a treasure that I am sure it can never be washed away. Next challenges will require more patient and valor during the implementation of what I have done here. May Allah bless all of us. 5 TABLE OF CONTENTS page ACKNOWLEDGMENTS .................................................................................................. 4 LIST OF TABLES .......................................................................................................... 11 LIST OF FIGURES ........................................................................................................ 16 LIST OF ABBREVIATIONS ........................................................................................... 22 ABSTRACT ................................................................................................................... 25 CHAPTER 1 INTRODUCTION .................................................................................................... 27 Background ............................................................................................................. 27 Problem Statement and Justification ...................................................................... 28 Research Focus ...................................................................................................... 30 Research Organization ........................................................................................... 30 Research Objectives ............................................................................................... 31 Chapter Summary ................................................................................................... 32 2 LITERATURE REVIEW .......................................................................................... 35 The Economics of Renewable Energy System in Airport ........................................ 35 Airport Revenue Diversification ........................................................................ 35 Defining the Role of Airport .............................................................................. 36 Defining Cost of Electricity ................................................................................ 38 Revenue Model Formulation ............................................................................ 40 Renewable Energy Incentives .......................................................................... 42 Regulatory and Safety Issues in Airport .................................................................. 46 Airports and Sustainability ...................................................................................... 47 Existing Methodology to Assess Renewable Energy System ................................. 48 Types of Renewable Energy System ...................................................................... 52 Solar Energy ..................................................................................................... 52 Wind Energy ..................................................................................................... 54 Hydro Energy ................................................................................................... 55 Ocean Energy .................................................................................................. 56 Biomass Energy ............................................................................................... 58 Geothermal Energy .......................................................................................... 58 Current Status of U.S. Renewable Energy Condition ............................................. 59 Research Significance to Decision Knowledge ....................................................... 69 Chapter Summary ................................................................................................... 71 6 3 METHODOLOGY DEVELOPMENT........................................................................ 74 Research Design .................................................................................................... 74 Decision Model and Evaluation Tool Validation Defined ......................................... 75 Hypothetical Argument............................................................................................ 77 Step 1: Assessment of the Airport Revenue System .............................................. 77 Existing Financial Structure in Airport ............................................................... 77 Enhancing Revenue System in Airport ............................................................. 79 Step 2: Theoretical Potential Quick Assessment—Rationale of Florida Renewable Energy Resource Potential ............................................................... 80 Step 3: Siting Evaluation Using Specific Safety and Regulatory Constraints .......... 87 Site Location Criteria ........................................................................................ 87 Technical and Safety Design Assessment ....................................................... 90 Step 4: Determining Ownership Options ................................................................. 91 Step 5: Revenue Evaluation Using Developed Feasibility Assessment Tool .......... 92 Chapter Summary ................................................................................................... 93 4 SELECTED CASE STUDIES AND DATA PROCESSING ...................................... 97 Selected Case Studies Overview ............................................................................ 97 Jacksonville International Airport ...................................................................... 97 Hendry County—Airglades Airport ................................................................... 98 Marion County—Dunnellon Airport ................................................................... 99 Data Sources .......................................................................................................