4 FAQs about Microgrid power supply equipment leasing contract

Can energy as a service finance a DoD microgrid project?

Now that we've established the basis for Energy as a Service procurement authority for the DoD, we can also bring in third-party financing for DoD microgrid projects. Doing so frees up the limited MILCON (Military Construction) and ERCIP (Energy Resilience Conservation Investment Program) funds for other projects.

Does implementing a microgrid reduce energy costs?

Implementing a microgrid reduces annual energy costs. It also decreases the power needed for critical loads, which can result in a reduced size and cost of the microgrid.

Can a PPA fund a microgrid?

A Power Purchase Agreement (PPA) may not be able to fund a microgrid directly, but it could be used to finance a large PV system which could be incorporated into a microgrid system.

How many military microgrids are there?

As of October 2023, there were about 30 microgrids operating at U.S. military sites. The DoD today uses a lease, which is often referred to as an enhanced use lease (EUL), and power purchase agreement (PPA) for green energy and microgrid projects.

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