Today, Defense Logistics Agency (DLA) Energy issued solicitations for the purchase of carbon pollution-free electricity (CFE) to support Department of Defense installations and federal agencies in two key regions. This is an important step forward in transforming how the U.S. government buys and manages electricity and putting the nation on a path to achieving a carbon pollution-free electricity sector by 2035.
"Leading the transition to clean energy is critical to U.S. national security: it can make U.S. military installations more resilient, our operating forces more agile, and our country more competitive in the face of rapidly-shifting global energy markets," said Deputy Secretary of Defense Kathleen Hicks. "The Department of Defense is one of the largest electricity purchasers in the world, and when it comes to clean energy, we're sending a clear signal to the marketplace: DoD is buying."
A Notice of Opportunity was issued on Thursday, Dec 15 for North and South Carolina, for developers to submit CFE proposals to DLA Energy. DLA Energy intends to work with selected developer(s) as part of Duke Energy's Green Source Advantage program to bring new clean energy supplies onto the grid commensurate with Department of Defense requirements in those states.
DLA Energy also issued a Request for Proposals (RFP) today for the purchase of electricity, including CFE, in the region operated by the Electric Reliability Council of Texas (ERCOT). The RFP solicits proposals that include CFE to meet a percentage of the aggregated electricity load of Department of Defense and other federal agency customers.
These solicitations follow the one-year anniversary of President Biden's signing of the Executive Order Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability (EO 14057), which directed the federal government to use 100 percent CFE on a net annual basis by 2030, with 50 percent of that matched to federal customer demand on an hourly basis.
The Department of Defense is the largest energy user in the federal government and one of the largest electricity purchasers in the world. The Department intends to leverage that scale to accelerate the deployment of CFE while ensuring secure energy supplies for military installations and mitigating price volatility.
Supplier responses to the solicited electricity requirements, to include CFE quantities, pricing, availability, and other factors will be evaluated and negotiated. Award decisions are expected in CY2023.
