Energy Services Performance Contract to Save Army Base $92M

The Fort Riley Army Post in Kansas expects to save $92 million in energy costs over the next 22 years with 15 new energy conservation measures it plans to implement. Fort Riley, expecting to reduce energy use by 25% by 2025, is expanding and upgrading central plants and energy management controls, updating HVAC equipment, implementing LED upgrades, and improving boiler and water conservation measures across 280 buildings.

Fort Riley contracted with California-based Southland Energy via an energy services performance contract (ESPC) to conceptualize and implement the changes.

When complete, the project will lead to reduced operating costs and improved infrastructure. The improvements will be funded through the $2.4 million in annual cost savings that the project is expected to generate. Over a 22-year period, these savings are anticipated to grow to more than $92 million in savings. The project’s design and construction phases are scheduled to begin this month.

In March, the Army announced that it had signed an $11.8 million ESPC with Siemens USA to implement facility upgrades to enhance energy efficiency and reliability, as well as energy security, at the Joint Systems Manufacturing Center in Lima, Ohio – one of the Army’s most voracious power consumers.

And in April Army officials unveiled 90 acres of solar panels at the Anniston Army Depot in Eastaboga, Alabama. Paid for and owned by Alabama Power, the $25 million project represents the first phase in the Army’s plan to make the depot more energy efficient.

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