Monday, May 7, 2012

NAVY'S ENERGY PARTNERSHIP WITH CALIFORNIA


FROM:  U.S. NAVY
Navy, California Officials Meet to Advance Energy Partnership Goals
From Naval Facilities Engineering Command Headquarters Public Affairs
SAN DIEGO (NNS) -- Representatives from California government and industry met with Navy energy leadership April 25 to discuss important energy issues, mutual challenges, and ideas on how to ensure sufficient, secure and affordable energy in the future.

Assistant Secretary of the Navy for Energy, Installations, and Environment Jackalyne Pfannenstiel kicked off a two-day "Smart Power Partnership Initiative" (SPPI) stakeholder summit that set forth the Navy's vision to develop regional smart grids capable of sharing power and responding quickly to grid outages and load curtailment events.

"We are seeking win-win scenarios with California through proactive efforts in which the Navy can ensure continuity of critical missions and participate in cost-incentives programs while simultaneously helping California meet load demands reliably during peak events and emergencies," said Pfannenstiel.

Leaders from the California Energy Commission, California Office of the Governor, California Public Utilities Commission, California Independent System Operator, Western Area Power Administration, Southern California Edison, and San Diego Gas and Electric participated with Navy officials in presentations and panel discussions on such issues as demand response, transmission planning, energy security, renewable energy, and associated regulatory requirements.

The Navy's flagship Smart Power Partnership Initiative is aimed at leveraging existing and planned energy investments inside installation fence lines, such as smart meters, and enhancing partnerships with energy suppliers and regulators. The initiative also explores how these investments can enable the Department of the Navy (DON) to reduce its electricity purchase costs and foster cost-effective renewable energy production at Navy and Marine Corps installations. Cost savings will come largely from aggregating the loads across installations and participation in significant utility demand response programs, in emergencies or to reduce costs.

"While our effort is long-term, proactive and strategic, the ongoing challenges with the San Onofre Nuclear Generating Station highlight the importance of efforts we are piloting with SPPI," Pfannenstiel said.

The smart power initiative is currently being piloted among San Diego-area Navy and Marine Corps installations. Initial findings are expected this summer, and will be used to validate the concept and potentially export it to other large Navy and Marine Corps base areas.

In March, DON and San Diego Gas and Electric capitalized on a Navy-wide security exercise to test the ability of San Diego Navy and Marine Corps installations to reduce electrical consumption during an electricity curtailment period.

The Department of Navy's Energy Program requires the Navy to improve energy efficiency and increased use of alternative energy. Together, these strategies increase combat capability, reduce overall dependence on petroleum, and mitigate the risks posed by vulnerable energy supplies.

Also, Secretary of the Navy Ray Mabus established a 1 GW Task Force to assess and select renewable energy projects that will achieve DON's goal of producing or procuring 1 GW of renewable energy on or adjacent to Navy and Marine Corps installations. The 1 GW Task Force will work to achieve this goal at no additional cost to the taxpayer by using existing third-party financing mechanisms such as power purchase agreements (PPAs),joint ventures (JVs), enhanced use leases (EULs), utility energy savings contracts (UESCs), and energy saving performance contracts (ESPCs).

The 1 GW initiative continues progress toward the broadest of SECNAV's five energy goals: that by no later than 2020, at least half of all Navy energy consumption, afloat and ashore, would come from alternative sources.

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