Renewable Energy Project Financing: Improved Guidance and Information Sharing Needed for DOD Project-Level Officials

DoD is the largest consumer of energy in the federal government, spending about $3.8 billion on facilities energy at more than 500 permanent military installations throughout the world in fiscal year 2010. The House Armed Services Committee directed GAO to review issues related to financing approaches for renewable energy projects on military installations. GAO did the following: (1) determined the approaches that military services are using to finance renewable energy projects and the factors the services consider in selecting an approach; (2) assessed the extent to which the services have established methods to obtain good value and advantageous contract terms and manage risks of financing approaches for renewable energy projects; and (3) identified the extent to which the services developed guidance, training, and other resources to assist officials in selecting and implementing financing approaches. GAO reviewed applicable legal authorities, guidance, and project information from selected projects and interviewed officials from the Office of the Secretary of Defense, military services, 10 selected installations, and the Department of Energy. GAO recommends that DoD issue comprehensive guidance to ensure that key analyses are completed and that alternative financing approaches are fully considered. GAO also recommends that DoD develop a formalized communications process to share best practices on financing renewable energy projects among installations. DoD generally concurred with GAO's recommendations. Report to Congressional Committees.