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FORT BELVOIR, Va. - Defense Logistics Agency Energy stands ready to support the military services as they work to meet renewable energy goals.
White House officials announced earlier this month that the Defense Department will use various alternative financing techniques to reach the services’ established renewable energy goals.
“We want each of the services to know we’re here to provide contracting support to help them achieve their renewable energy goals,” DLA Energy Installation Energy Director Pam Griffith said.
“DLA Energy already works closely with the services to support their energy efficiency projects using alternative financing mechanisms,” Griffith added. “We have awarded more than $400 million in energy savings performance contracts and continue to utilize this vehicle along with power purchase agreements to implement renewable projects on DoD and federal lands.”
Power purchase agreements require a developer to install a renewable energy system on agency property under an agreement that the agency will purchase the power generated by the system. The agency pays for the system through these power payments over the life of the contract. After installation, the developer owns, operates and maintains the system for the life of the contract, according to the Department of Energy’s Federal Energy Management Program website.
“DLA Energy has issued numerous PPA solicitations for both DoD and federal civilian agencies,” DLA Energy Renewables Chief Andrea Kincaid said.
Contracts for PPAs for DoD service components can have a contract duration of up to 30 years, however, many PPAs are 20 years in length, she added.
“These agreements are a great opportunity for the services to reduce their reliance on traditional methods of securing energy and to meet their renewable energy requirements,” Kincaid said. “DLA Energy is eager to support all government agencies by utilizing PPAs.
“DLA Energy participates actively with other federal agencies under the DOE's Renewable Energy Working Group to identify best practices and lessons learned under these types of projects. We are continually modifying our solicitation language to better represent what is acceptable within the commercial marketplace,” she added.
Both Griffith and Kincaid said they feel confident business will grow as the services continue to look to DLA Energy as the renewable energy procurement experts.
“Providing renewable energy support utilizing the PPAs and ESPC vehicles is a natural fit for DLA Energy,” Griffith said. “We have been providing energy contracting support for the services since the early 1990s and have been recognized by FEMP for our leadership in the renewable energy arena.
“Energy contracting is our niche, and this is another great opportunity for the services to leverage our support and partner to meet the goals and objectives set by the department,” she said.
“DLA Energy works with each customer to determine which alternative financing mechanism, like PPAs, ESPCs or utility energy service contracts, will best support their requirements,” Kincaid said. “Our team is here to help.”
DoD is planning to develop three gigawatts of renewable energy by fiscal 2025, and each service branch will develop one gigawatt of renewable energy, officials said. Three gigawatts of energy can power 750,000 homes, officials said.
The U.S. Air Force is to develop a gigawatt of energy by 2016, the U.S. Navy by 2020 and the U.S. Army by 2025. Alternative financing techniques, such as energy savings performance contracts, power purchase agreements and enhanced-use leases are the financing techniques to be used by each service to reach these new goals, according to a White House fact sheet.
| Date Taken: | 04.30.2012 |
| Date Posted: | 05.07.2012 12:30 |
| Story ID: | 88025 |
| Location: | FORT BELVOIR, VIRGINIA, US |
| Web Views: | 122 |
| Downloads: | 0 |
This work, DLA Energy supports Defense Department’s renewable energy goals, by Susan Lowe, identified by DVIDS, must comply with the restrictions shown on https://www.dvidshub.net/about/copyright.
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