Billions of dollars in federal funds will be available to the private sector in contracts for the purchase of renewable energy.
“This is an end-of-the-game market creator for renewable energy and cleantech,” said Taite McDonald, a senior advisor at Wilson Sonsini Goodrich & Rosati (WSGR) in Washington, D.C. who advises energy and clean technology companies interested in working with government.
Opportunities are materializing. Earlier this month, the Army took an important step forward in laying the foundation to fulfill its commitment of deploying 1 GW of renewable energy. The Army Corps of Engineers released a call for companies to bid for up to $7 billion of contracts to purchase energy from renewable facilities that will be installed on military land.
The contracts –- in the form of power purchase agreements, or contracts that define the terms between buyers and sellers of electricity – could be in place for as long as 30 years. More likely, though, they’ll be 23 to 25 years in length, according to McDonald.
The number of contractors is dependent on the capabilities and qualifications of the bids the Army receives, said Hammack. It’s also dependent on the type of energy that’s supplied and the size of those projects. One gigawatt can be generated through 10 very large projects, 100 medium-sized projects or 500 small projects, according to Hammack.
The Navy is now soliciting feedback regarding what type of projects industry may want to build on its bases such as the Naval Air Weapons Station in China Lake, Calif. It’s planning to continue the process with other bases in the future, according to McDonald.
As for the Air Force, McDonald predicts it will likely start to release more opportunities for building renewable projects with enhanced-use leases in the coming months. The first step in the process to develop such an opportunity is now underway at the Ramey Air Force Base in Puerto Rico.
In the future, more requests for proposals focused on purchase power agreements are likely to become available, McDonald said.
Next page: Getting qualified under the Army’s $7 billion opportunity
Are Chinese PV panels our
Are Chinese PV panels our military's best idea for sustainabile defense? Pretty funny or sad. I would think small modular reactors would be best in war zones. For one these would provide much smaller target.
I think the US Military has
I think the US Military has been doing this for a while but just didn't have the press coverage. Traditionally they have been big supporters on Innovation from within the US. Wish other militaries were the same:)
They really weren't,
They really weren't, especially as they were sent into two more wars, till this Administration, not to mention in the decades prior to, the special interests had effectly blocked the whole growth of the innovative industries here, especially alternatives, for some forty years and at the same time started sending our once envied innovative trades to those who envied!
In addition to the benefits
In addition to the benefits of the military becoming more energy independent and efficient, injecting $7B in the renewable energy market in the US is going to do 2 things to the industry: lower the prices because of the volume, and increased competition which fosters innovation.
There's also a large number of jobs that will be created, and an education system that will have to move fast to deliver the qualified workers needed.
Absolutely, Bernard. I was
Absolutely, Bernard. I was also curious about the number of jobs these opportunities might create, and asked Assistant Secretary Katherine Hammack about this during the press conference. She noted that there hasn't been an analysis done - so no range of numbers just yet.
The economics of renewable
The economics of renewable fuels has to be there for it to succeed.
This country is not in a position to pay the prices quoted for bio-diesel or other fuels.
Thanks for your comment. The
Thanks for your comment. The Army's $7B will be paying for renewable energy used to produce electricity only.
Once we get the military to
Once we get the military to start following the alternative energy movement it will roll. Just think about the communications industry in the 80 and 90's. Once the broke up the bell companies that had all the power over price and was a huge monopoly, the US had a HUGE economic growth. Once we can break up these Huge oil industries that are lobbying like crazy to stop all the development of alternative energy, we will once again have huge growth and stop sending our money to countries that want to kill us.
We are in a new war, a war to save our planet. Even if we think it is not happening when evidence shows we are having issues. It is our patriotic duty to try to rebuild and make the US less dependent on oil and clean energy.
What would have happened if we did not have the patriots that said the British are coming. Or someone smart enough to say you know that Hilter guy is not good.
We have to look around and say wow look at all the trees we are burning down in the rainforest. Look at all the ice melting. Wow that does sound good. Maybe I should stop thinking about politics and think. I want to help my planet.