The story of Apex’s power purchase agreement with the Defense Logistics Agency–Energy and Fort Hood, which involves the Army’s largest single renewable energy project to date.
By: Melissa Peterson, Manager of Business Development
In October 2014, Defense Logistics Agency–Energy (DLA Energy) released a request for proposals (RFP) on behalf of the U.S. Army for a renewable energy supply agreement (RESA) for Fort Hood. Teams across Apex collaborated for months to develop a customized solution to match the aspirational goals of DLA Energy. In June 2015, Apex received a notice of intent to award for the contract. After lengthy negotiations and discussion, Apex and DLA Energy executed a 29-year RESA (28 years of energy delivery plus one year of construction) in January 2016.
The deal—which involves the Army’s largest single renewable energy project to date—is expected to save the Department of Defense (DoD) about $168 million compared to what it would pay for power from the traditional electricity grid over the course of the 28-year agreement.
The proposal drew on the capabilities of Apex’s development, power marketing, finance, and engineering and construction teams.
Fort Hood: A City Unto Itself
The Fort Hood military installation spans over 218,000 acres in Killeen, Texas, approximately 60 miles due north of Austin. Fort Hood, which was established during World War II, is one of the largest U.S. military installations in the world. It consists of 6,348 buildings and structures, 35 million square feet of floor space, and 770 miles of paved roadways and currently supports over 388,000 personnel. Fort Hood hosts 9 schools (which educate more than 24,000 students), 99 barracks, 9 gyms, 2 grocery stores, 2 department stores, 12 chapels, and over 6,700 family quarters.
Through the U.S. Army’s Net Zero initiative, Fort Hood developed an energy program with the goal of modifying behavior and leveraging technology to reduce energy usage at Fort Hood, ultimately leading to the broader goal of net zero energy at the installation. With this objective in mind, and using the authority granted under 10 U.S.C. § 2922a (authorizing the use of U.S. Army land as a location for renewable energy generation systems), Fort Hood worked with DLA Energy and the Army Office of Energy Initiatives (OEI) to release the RFP for a RESA to meet 100% of Fort Hood’s electrical energy requirements.
Leveraging the largest pipeline of projects in the nation, Apex worked to identify the ideal project from its Texas portfolio to meet the RFP’s requirements and soon selected Cotton Plains Wind for its size (50 MW), outstanding wind resource, proximity to robust transmission lines, and late-stage development status.