HUNTSVILLE, Ala., May 6 (UPI) -- The U.S. Army has given the first development contracts for renewable energy technologies under a $7 billion initiative.
Five companies were awarded indefinite-delivery/indefinite-quantity awards in geothermal technologies.
The U.S. companies are: Constellation NewEnergy Inc., ECC Renewables LLC, Enel Green Power North America Inc., LTC Federal LLC and Siemens Government Technologies Inc.
The multiple award task orders were issued by the U.S. Army Corps of Engineers, Engineering and Support Center, Huntsville, Ala., working with the Army Energy Initiatives Task Force.
"Announcement of awards for the remaining technologies -- solar, wind and biomass -- are anticipated for staggered release through the end of calendar year 2013," the Army said.
The multiple award task orders are for three years with seven one-year options. The awards will be used to procure reliable, locally generated, renewable and alternative energy through power purchase agreements for military installations.
The $7 billion capacity would be expended for power purchase agreements to procure energy over a period of 30 years or less from renewable energy plants that are designed, financed, constructed, operated and maintained by contractors using private sector financing.
"In our current fiscal environment, attracting third-party money to build renewable energy production facilities that will allow military installations to purchase energy at a pre-determined rate without building, owning and maintaining the facility is the right thing to do," said Col. Robert Ruch, Huntsville Center commander. "Increasing energy security is a top priority for (Defense Department) and Army leadership, and this effort will lead to enhanced energy security and sustainability for our installations."