North America, Renewables

North America

Issue 2 and Volume 21.

US military set to quadruple renewable energy capacity

US military spending on renewable energy will hit $1.8bn by 2025, boosting total installed capacity four-fold, according to new research.

A new report predicts that the military will increase its renewables’ capacity from the current 80 MW to more than 3200 MW in the next 12 years.

This has the potential to make the US Department of Defense”one of the most important drivers of cleantech in the United States”, according to analyst Dexter Gauntlett of Pike Research, which compiled the report.

Gauntlett added that the $1.8bn spend would”transform the production, consumption, and transport of fuel and energy within the military”.

The US Army, Navy, and Air Force have each set ambitious targets of 1 GW of installed renewable energy capacity by 2025, and Pike calculates that because these initiatives”have gained considerable momentum, many of the targets will be achieved”.

The report states that because of the US Department of Defense’s use of power purchase agreements and enhanced use leases, some military installations should be able to pay the same amount – or even less – for renewable electricity as they currently do for retail power from the grid.

According to the report, the US Department of Defense currently spends in the region of $20 bn per year on energy and uses 3.8 billion kWh of electricity.

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