The Art of the Deal: How Can the Air Force Successfully Execute Renewable Energy Transactions?

Abstract

The purpose of this paper is to explore the methods the Air Force uses to procure renewable energy. To comply with Executive Order 13423, agencies must ensure that at least half of all renewable energy required under the Energy Policy Act of 2005 comes from new renewable sources (developed after January 1, 1999; Department of Energy, Laws and Regulations, n.d.). The Air Force is currently on track to meet the requirements of this legislation and is also the Department of Defense (DoD) leader in total renewable energy procured. The contracting tools used to procure renewable energy are Power Purchase Agreements and Enhanced Use Leases. The processes involved with Power Purchase Agreements and Enhanced Use Leases are unique and challenging. Additionally, renewable energy procurement includes many other participants or interested parties, which is contrary to the standard contracting process. Working within this renewable-energy arena requires the use of public private partnerships in order for these deals to be successful. This paper will describe and evaluate the entire process used to procure renewable energy including parties involved, tools to execute, examples of successful projects, and it will explain how the Air Force can better support the procurement of renewable energy.