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US Army announces geothermal awards of $7 billion energy program

U.S. Army Corps of Engineers installed Solar station at Nellis Airforce Base, Nevada (source: flickr/ USACEpublicaffairs, creative commons)
Alexander Richter 7 May 2013

The US Army Corps of Engineers announces first geothermal awards of $7 billion renewable energy program designed, financed, constructed, operated and maintained by private sector players.

In an announcement, the US. Army Corps of Engineers reports it has awarded the first of its kind Indefinite Delivery Indefinite Quantity (IDIQ) Multiple Award Task Order Contracts (MATOC) for the first technology under this contract to support renewable energy on Defense Department installations.

The total amount for all awards under the Renewable and Alternative Energy Power Production for DoD Installations MATOC will not exceed $7 billion.  The MATOC will be used to procure reliable, locally generated, renewable and alternative energy through power purchase agreements (PPA).  The $7 billion capacity would be expended for PPAs to procure energy over a period of 30 years or less from renewable energy plants that are designed, financed, constructed, operated and maintained by contractors using private sector financing.

The five companies awarded contracts for use in competing and awarding PPA task orders using geothermal technology are

  • Constellation NewEnergy, Inc., Baltimore, Md.;
  • ECC Renewables, LLC, – Burlingame, Calif.;
  • Enel Green Power North America, Inc. – Andover, Mass.;
  • LTC Federal, LLC, Detroit, Mich.; and
  • Siemens Government Technologies, Inc., Arlington, Va.

The contracts provide a three-year base with seven one-year options, for a total ordering period of 10 years.  Having these contracts in place will expedite the acquisition process for future projects.

Huntsville Center, working on behalf of USACE with the Army’s EITF, issued the Request for Proposal for the $7 billion Renewable and Alternative Energy Power Production for DoD Installations MATOC on Aug. 7, 2012.

These contracts will place the Army one step closer to meeting the Congressionally mandated energy goal of 25 percent production and consumption of energy from renewable sources by 2025 and improving installation energy security and sustainability while remaining cost conscious.

Source: U.S. Army Corps of Engineers Defense Communities