Army Power and Energy Deputy Assistant Secretary of the Army Energy and Sustainability Mr. Richard Kidd 16 September 2014 Assistant Secretary of the Army (Installations, Energy & Environment) 1 Strategic Context The Army is addressing energy security through a comprehensive program to ensure that we have assured access to reliable supplies of energy and the ability to protect and deliver sufficient energy to meet mission-essential requirements. • Soldier:  Lightening soldier power loads  Agility and self-reliance through advanced portable power systems, lighter batteries, universal charging devices and water purifiers • Vehicles:  Utilizing alternative fuels, hybrid and electric systems  Improving efficiency and extending engine life  Includes tactical (air and ground) vehicles and non-tactical vehicles • Basing:  Improving installation fuel, water and energy efficiency  Net Zero strategy  Diversity of supply through renewable energy enhancing energy security  Energy Initiatives Task Force Assistant Secretary of the Army (Installations, Energy & Environment) 2 Installation Energy Through technology and policies we are reducing our energy footprint. We will provide flexibility and resiliency by developing alternatives and adaptable capabilities • Largest facility energy consumer in the Federal Government – $1.3B (FY13). • Established Net Zero Initiative to demonstrate integrated design principals that will ensure the Army of tomorrow has the same access to energy, water, land and natural resources as the Army of today. • Formed the Energy Initiatives Task Force to develop large scale renewable energy projects that will help strengthen energy security while supporting the Army’s energy goals. • Utilizing third party financing to improve efficiency on Army installations. The Army has most robust ESPC program in entire Federal government. Assistant Secretary of the Army (Installations, Energy & Environment) 3 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 Energy Efficiency May Lower Baseline by 30% Remaining Electric Consumption NDAA Renewable Energy Requirement 25% by 2025 or 2,500,000 MWh 2011 2013 2015 2017 2019 Major Issues for Army Large-Scale Renewable Energy Projects: • Declining Budgets/Incentive Leverage Need for private financing • Specialized Expertise Requires financial, regulatory, environmental and real estate expertise • Enterprise Strategy To define the most efficient path to reach Army goals 2021 % Renewable Energy of Total Energy Total Energy in Megawatt Hours Army Energy Outlook 2023 2025 National Defense Authorization Act: 25% by 2025 30% 25% 20% 15% 10% 6% Progress in FY 2012 from 194 different projects 5% 0% 2010 2015 2020 2025 Path to Compliance Assistant Secretary of the Army (Installations, Energy & Environment) UNCLASSIFIED 4 Army Large-Scale Renewable Energy Projects Location: Ft. Drum, NY Project: 28 MW Biomass Business/Acquisition Model: PPA Notice of Intent to Award to ReEnergy Holdings LLC Yakima Training Center Location: Tooele Army Depot, UT Project: Wind/Solar Business/Acquisition Model: Competitive Lease Location: Ft. Irwin, CA Project: 15 MW Solar Business/Acquisition Model: Competitive PPA through DLA Camp Parks Ft. Irwin JFTC Los Alamitos Location: Ft. Huachuca, AZ Project: 18 MW Solar Business/Acquisition Model: GSA Areawide Contract through TEP Location: Schofield Barracks, HI Project: 50 MW Biodiesel Business/Acquisition Model: Lease with HECO Location: Ft. Detrick, MD Project: 15 MW Solar Business/Acquisition Model: PPA Notice of Intent to Award to Ameresco Inc. Location: Redstone Arsenal, AL Project: Up to 18000 MW hours per year Solar Business/Acquisition Model: MATOC PPA Tooele Army Depot Camp Roberts Installation Project Status: Construction Contracts and Agreements Project Assessment & Validation Ft. Detrick Location: Redstone Arsenal, AL Project: 25 MW Renewable CHP Business/Acquisition Model: Competitive PPA through HNC Redstone Arsenal AK Ft. Meade Ft. Rucker Ft. Hood Ft. Bragg Ft. Gordon Ft. Benning Ft. Stewart Schofield Barracks HI Camp Edwards Ft. Pickett Ft. Huachuca Ft. Greely Ft. Devens Aberdeen Proving Ground Anniston Army Depot Ft. Bliss Ft. Drum Location: Ft. Hood, TX Project: Offsite Wind, Onsite Solar Business/Acquisition Model: Competitive PPA through DLA Location: Ft. Stewart, GA Project: 18 MW Solar Business/Acquisition Model: Competitive lease in conjunction with the GA Power Advanced Solar Initiative (ASI) Location: Ft. Benning, Ft. Gordon, Ft. Stewart, GA Project: 90 MW Solar Business/Acquisition Model: GSA Areawide Contract through GA Power Contributing >30% Towards Army’s 1 GW Goal Assistant Secretary of the Army (Installations, Energy & Environment) UNCLASSIFIED 5 Other Army Renewable Energy Projects • In addition to the EITF the Army develops small scale renewable energy projects through both appropriated funds and third party financing • Energy Conservation Investment Program – 2.7MW in FY13 • Energy Savings Performance Contracts – 8.6 MW in FY13 ECIP - Two 1.1 MW Solar Arrays, Fort Hunter Liggett ECIP - 170 KW Photovoltaic Solar Power System, New Jersey National Guard Joint Training and Training Development Center ESPC - 4.1 MW Solar Array White Sands Missile Range ESPC - Three 275kW Wind Turbines, Fort Buchanan Assistant Secretary of the Army (Installations, Energy & Environment) 6 Third Party Financing Energy Savings Performance Contracts (ESPC) / Utilities Energy Services Contracts (UESC) and Utilities Privatization (UP) Private Companies / Servicing Utilities provide initial private capital investment to execute projects For ESPCs & UESCs, repayment is from realized energy savings paid from Utilities Services Program funds Army has most robust ESPC program in Federal government & improving – Exceeded goal for Presidents Challenge More ESPC’s and UESC’s were awarded Dec 11-Dec 13 ($498M) than in any two years of the program 300 100 50 2013 0 2014 Projected ESPC 2012 • 144 UP awards made through FY13, a net present value cost avoidance of $2.0 billion. • 86% of utility systems evaluated. • All new, major UP investments are amortized UESC 2011 UP: 150 2010 Over 360 task orders/ 45 installations > 3.8 Trillion BTU Energy Savings per year $568 Million in Private sector investments $100 Million more in development 2009 • • • • 200 2008 UESCs: 250 2007 Over 180 task orders/ 75 installations >6.6 Trillion BTU Energy Savings per year $1.32 Billion of Private sector investments $400 Million more in development 2006 • • • • 3rd Party Investment in Million of Dollars ESPC: 2005 • • • • Assistant Secretary of the Army (Installations, Energy & Environment) 7 Army Net Zero (NZ) Challenge Net Zero is a holistic management approach to bring the overall consumption of energy, water, and waste on installations down to an effective rate of zero by using the principles of integrated design to appropriately manage resources. Through such efforts as reducing demand, increasing efficiency, producing renewable energy, using graywater, re-purposing materials, and expanding recycling and energy recovery…consumption of resources can be reduced to an effective rate of zero. Assistant Secretary of the Army (Installations, Energy & Environment) 8 AMERICA’S ARMY: THE STRENGTH OF THE NATION ARMY STRONG Assistant Secretary of the Army (Installations, Energy & Environment) 9