Business Case Analysis of the Marine Corps Base Pendleton Virtual Smart Grid

Abstract

Rising energy costs and decreasing federal funding are prompting government organizations to find effective cost-saving solutions. As one of the largest American consumers of electricity, the Department of Defense (DOD) is searching for answers in energy-efficient technology. This study discusses the benefits of using power-modeling software to manage Advanced Metering Infrastructure on DOD installations. An examination of five case studies highlights the costs and benefits of the Virtual Smart Grid (VSG) developed by Space and Naval Warfare Systems Command for use at Marine Corps Base Pendleton (MCBP). The power-modeling software used to manage the VSG discovered improvements that can be made to the electrical grid to reduce energy consumption costs, prevent equipment damage, improve project planning, and facilitate installation energy management. Conservatively, implementing only one of the described improvements would result in a 20-year net present value of the project of approximately $800,000. Power-modeling software provides the potential for a wide range of capabilities and a plethora of benefits yet to be discovered, both at MCBP and throughout the DOD.