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Collaboration Between Army Installations and Utility Companies

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The United States Army operates many installations in the United States and around the world, and these facilities consume large quantities of energy. The Army would like to reduce energy use at its installations because it wants to reduce its energy costs over 1.2 billion in 2010 and because legislation and policy have directed it to do so. While the Army has a new energy vision, Net Zero Energy Installations NZEI, calling for installations to produce as much energy as they use in a year, installations do not have many investment options to help them achieve that goal nor any consistent dedicated funding for energy efficiency or renewable energy projects. One solution is for installations to collaborate with utility companies. The Army asked RAND Arroyo Center to recommend ways that its installations could improve collaboration with utility companies. Key findings are as follows 1 The Army spends over 1 billon a year on energy for its installations and wants to reduce that cost 2 Installations can collaborate with energy utilities to lower costs through such mechanisms as Utility Energy Service Contracts UESCs and Utility Service Contracts USCs 3 Barriers limit such collaboration, including a lack of expertise at the installation and the energy utility, the perceived risk of projects, and the long time it takes to pay back an investment and 4 The Army can help overcome barriers by educating installation staff, including commanders, establishing closer ties with utility companies, issuing supportive policies, and advertising successful collaborations both to installations and energy utilities.

Subject Categories:

  • Economics and Cost Analysis
  • Non-electrical Energy Conversion
  • Electric Power Production and Distribution
  • Logistics, Military Facilities and Supplies

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