News | Feb. 9, 2022

DLA Energy embarks on 24/7 carbon pollution-free electricity effort

By DLA Energy Public Affairs

In a partnership for clean energy, Defense Logistics Agency Energy and the U.S. General Services Administration are working together to introduce supplying carbon pollution-free electricity to the federal government. 

“DLA Energy is working with industry to determine the capabilities in supplying 100% carbon pollution-free electricity, including 50% hourly matching, to the federal government,” said DLA Energy Installation Director Pam Griffith. “This is an exciting opportunity to transform how we procure electricity for the Department and federal civilian customers.”  

The Department of Defense is the largest energy user in the federal government and one of the largest electricity purchasers in the country. In the United States, the federal government consumes electricity almost exclusively from the power grid, where carbon pollution-free electricity made up about 40% of electricity generated in 2020. 

The announcement is part of the Whole-of-Government Approach to Addressing the Climate Crisis according to a DOD news release. The RFI was prepared in conjunction with GSA, Department of Energy, Federal Energy Management Program and White House Council on Environmental Quality.  

“In deregulated markets, the Department buys most of its electricity via contracts issued by DLA Energy,” Griffith said. “Installation Energy is the DOD’s centralized contracting agent for competitive electricity requirements.”

In 2021, DLA Energy actively managed roughly 17 million megawatt hours of electricity valued at $804 million under multiple-year contracts. DLA Energy's contracting and market expertise may also be leveraged to accelerate the Department's transition to carbon pollution-free electricity in regulated markets, expand on-site clean energy development through energy performance contracts, and further broaden support to whole-of-government partners to leverage scale and buying power.

“The Carbon Pollution-Free Electricity RFI is an example of how DLA Energy is collaborating with GSA to use our collective scale and procurement power to achieve 100% carbon pollution-free electricity by 2030,” Griffith said. “One purpose of the RFI is to better understand the capabilities, methods and pricing aspects of supplying the scale of clean energy needed. This information will help shape future procurement strategies for use in transitioning our retail supply contracts.” 

On Dec. 8, 2021, President Biden signed an Executive Order which sets the goal of the federal government sourcing 100% carbon pollution-free electricity by 2030, at least half of which will be locally supplied clean energy to meet 24/7 demand.

“The Department of Defense has an opportunity to lead the way in transitioning to carbon-free electricity,” said Deputy Secretary of Defense Kathleen Hicks in the DOD news release. “It’s not just critical to addressing the threat of climate change, but also to our national security as we work to secure U.S. competitiveness in rapidly-shifting global energy markets.”

DLA Energy Installation Energy Division provides acquisition support for facility energy commodities and services including coal, natural gas, electricity, renewable energy, energy savings performance contracts and long-term renewable energy project development. The business unit also serves as coordinator and facilitator for the DOD’s participation in electricity demand response programs and is the centralized program manager for DOD’s Natural Gas Program.