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Determining the return of energy efficiency investments in domestic and deployed military installations

NPS Calhoun · Nathan J. Gammache ·

Executive Summary

This research evaluates the return on investment for energy efficiency initiatives in military installations, focusing on Energy Savings Performance Contracts (ESPCs) for domestic bases and waste-to-energy generators for deployed forward operating bases. It analyzes financial benefits for both government and private lenders in ESPCs and assesses the potential savings from reduced fuel delivery and waste disposal costs at remote military sites. The study highlights how these investments align with energy mandates and offer significant financial and operational advantages.

Why It Matters

This document is crucial for defense analysts as it quantifies the financial and operational benefits of energy efficiency in military installations, directly impacting logistics, sustainability, and strategic resource allocation for both domestic and deployed forces.

Key Takeaways

  • Energy Savings Performance Contracts (ESPCs) offer significant utility savings, with private lenders realizing substantial returns, though the government could save more by direct funding.
  • Waste-to-energy generators at forward operating bases can drastically reduce fuel delivery and waste disposal costs, enhancing operational self-sufficiency and safety.
  • Implementing energy efficiency measures aligns with governmental policies and provides substantial financial returns, improving military readiness and reducing logistical burdens.

Strategic Relevance

Improving energy efficiency in military installations, both domestic and deployed, directly enhances operational resilience, reduces logistical vulnerabilities (especially for deployed forces reliant on fuel convoys), and frees up resources for core defense missions. It also contributes to strategic sustainability goals and reduces the environmental footprint of military operations.

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Key Entities

Department of DefenseNaval Postgraduate SchoolNathan J. GammacheEnergy Savings Performance Contracts (ESPCs)Waste-to-Energy GeneratorsForward Operating BasesUnited States NavyExecutive Order 13423Office of the Secretary of DefenseLogistics Management Institute

Best For

Policy MakersLogistics AnalystsMilitary PlannersDefense EconomistsEnergy Sector Analysts

Related Themes

Military LogisticsDefense SpendingResource ManagementOperational EfficiencyMilitary SustainabilityEnergy Security

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