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U.S Army Exploring Renewable Energy Contract

by: Matthew Potter
February 27, 2012

Category: Business Line, Companies, Department of Defense, development program, Events, logistics, Proposal, Restructuring, Services, U.S. Army | RSS 2.0

On Friday the U.S. Army released a draft RFP related to the purchase of renewable energy for facilities. The potential contract could be for up to 30 years and involve $7 billion.

The contract is not for generating capacity or for equipment related to electricity but actually just to buy power from different sources. The caveat is that it needs to be renewable generated electricity which normally implies solar, wind or geothermal rather then traditional means such as natural gas, oil or coal.

The Department of Defense is one of the biggest users of not only gasoline but also electricity to power their large number of facilities across the U.S. and the world. They have been aggressively exploring ways to reduce this demand not only through economizing but through use of other sources. This includes investments in biofuels such as algae and vegetation based. The goals are to reduce reliance on traditional fuels as well as save money.

The issuance of a draft RFP does not necessarily mean a contract will be awarded or that the final one will look like this but it will get industry thinking and figuring out how to respond. The issuance of this contract could provide some more jump start to the renewable power industry by creating massive demand. The Defense Department could also through pricing make it more financially viable.

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