Update on U.S. Army Use of ESPCs and UESCs

By Mr. Paul Farnan, Acting Assistant Secretary of the Army (Installations, Energy & Environment)November 18, 2021

The Army leverages private sector expertise through Energy Savings Performance Contracts and Utility Energy Service Contracts to improve efficiency and contribute to resilience. Solar PV parking canopies and two wind turbines, installed as part of an ESPC at Fort Buchanan, Puerto Rico, produce approximately 5.5 MW of renewable energy. (U.S. Army)
The Army leverages private sector expertise through Energy Savings Performance Contracts and Utility Energy Service Contracts to improve efficiency and contribute to resilience. Solar PV parking canopies and two wind turbines, installed as part of an ESPC at Fort Buchanan, Puerto Rico, produce approximately 5.5 MW of renewable energy. (U.S. Army) (Photo Credit: U.S. Army) VIEW ORIGINAL

WASHINGTON – At the direction of Secretary of the Army Christine E. Wormuth, and based on the guidance from the President and Secretary of Defense, the U.S. Army is developing a bold climate strategy to adapt and mitigate the effects of climate change. In carrying out the strategy, the Army will be reducing greenhouse gas emissions, expanding clean energy technology and implementing energy and water reduction measures.

To accomplish this, the Army is re-energizing its use of Energy Savings Performance Contracts (ESPCs) and Utility Energy Service Contracts (UESCs), and is expediting projects already in the pipeline while simultaneously evaluating new projects. The Army is fully committed to using all possible tools – particularly ESPCs, UESCs and other alternative financing measures – as a part of an overall strategic approach to sustain, restore and modernize facilities; help address the maintenance backlog; mitigate and adapt to climate change; reduce energy and water consumption; increase installations’ energy resilience and expand clean energy projects on all of our installations.

ESPCs and UESCs are statutorily authorized contracts that allow federal agencies to implement facility improvements with no up-front capital costs. Since 1992, the Army has entered into over $3.2B of ESPCs and UESCs. These projects routinely meet and exceed their guaranteed energy and water savings.

Energy and water are key to military capability. ESPCs and UESCs are one method to enable installations to cost-effectively improve facilities, reduce greenhouse gas emissions and adapt Army infrastructure to future climate realities. The Army will use ESPCs and UESCs to reduce energy and water consumption, increase energy resilience, construct renewable energy power generation assets and microgrids and provide reliable, performance-driven operations and maintenance for complex systems and technologies.

Monitor the Assistant Secretary of the Army (Installations, Energy and Environment) (ASA IE&E) and Army Materiel Command (AMC) websites for additional information on ESPC/UESC upcoming events, policies, and other program details.