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US Army Corps of Engineers issued RFP for energy projects of up to $7bn

US Army Corps of Engineers issued RFP for energy projects of up to $7bn Navy I geothermal power plant near Coso Hot Springs, California (source: J.L. Renner, INL, via DOE, EERE)
Alexander Richter 15 Mar 2012

The U.S. Army Corps of Engineers issues Request for Proposals for energy projects that produce power from, among other technologies, geothermal energy. The overall contract call is worth up to $7 billion.

In late February the U.S. Army Corps of Engineers (USACE) announced a draft request for proposals (RFPs) for “potentially the largest contract ever awarded”.

The draft is calling for proposals of up to $7 billion in energy projects, including oil, gas and renewable technologies, among them geothermal.

The projects would preferably large scale power generation projects to be developed on any federal property throughout the United States. It is expected that the agency will award up to $ 7 billion over a 10 year time period, soliciting bids from all types of businesses, large and small.

In September 2011, the Pew Charitable Trust, issued a study in which it predicted that clean energy investments by the Department of Defense could top $10 billion annually by 2030.

“It is the intent of the government only to purchase the energy that is produced, and not to acquire any generation assets. The contractors will finance, design, build, operate, own and maintain the energy plants. The government will contract to purchase the power for up to 30 years in accordance with the terms and conditions stipulated in site or project specific agreements.”

“For the Department of Defense, power purchase agreements provide a way to accelerate the pace toward its renewable energy goals without running into budgetary obstacles or, for that matter, opposition from members of Congress who are opposed to federal investment in alternative energy.

The Department’s goal is to produce or consume 25 percent of its energy from renewable sources by the year 2025, under a series of executive orders and federal laws dating back to the Bush administration.”

Source: TalkingPoints Memo