Monday, February 27, 2012

Testing, 1, 2, 3, Test: USACE Does Temperature Check of Industry

Late Friday afternoon the Army Energy Initiatives Task Force sent out an all points bulletin on a "Draft Solicitation for Renewable and Alternative Energy Power Production".  They pointed out that this was really an Army Corps of Engineers deal, but the AEITF is sounding the trumpet. In their roll out meeting last year, the AEITF promised movement early this year.  So far so good. But this is not the solicitation.  It is an invitation to comment on a  solicitation.
 The press release says,
The U.S. Army Engineering and Support Center, Huntsville, has issued a draft Request for Proposal (RFP) for $7 billion in shared capacity contracts to procure reliable, locally generated, renewable and alternative energy through power purchase agreements or other contractual equivalents.  The $7 billion capacity would be expended for the purchase of energy over a period of 30 years or less from renewable energy plants that are constructed and operated by contractors using private sector financing.
The draft is available here.  A synopsis of the 92 page draft solicitation.....would certainly be worth reading.  Once you do take the time to read and digest this (potentially) $7 Billion offering you have to go to another site called ProjNet to enter your comments and recommendations.

This is not a novel approach, but it does demonstrate a willingness to take input.  You have 30 days to respond and then it is up to the USACE contract specialist in Huntsville.
“The final RFP, when issued, may vary from this draft,” said Tonju Butler, the procuring contracting officer with the Huntsville Center. 
If it doesn't vary from the draft, then we will know something entirely different.  Please feel free to submit your suggestions as comments to this post and then we can look for them in the final.

Did I mention that the government is looking for 30 year PPAs???   The winner(s) of this contract will have a 30 year PPA with the Government or local utility as appropriate.  I was going to start buying gold, but this is a better bet.  A long term, assured cash flow arrangement like this is a dream deal for industry.  The only thing that could screw it up is government intransigence or  utility bureaucracy.  But what is the chance of that?  Dan Nolan

2 comments:

Pablo Panadero said...

There is no mention of using landfill gas as a renewable source. That seems to be a curious omission, given that a large base will generate tons of trash that will eventually produce landfill methane.

Bookkeepers Caloundra said...

It is really good to know this in the military.That they are becoming more concerned about energy.It should also be a concern of everybody.