In a landmark initiative to bolster energy resilience and sustainability, the Department of Defense (DOD) has announced a strategic partnership with Duke Energy. This collaboration will see two new solar energy facilities in South Carolina providing clean power exclusively to five North and South Carolina military bases.
The partnership will benefit several key military installations: Fort Liberty, Camp Lejeune, Cherry Point Air Station, Seymour Johnson Air Force Base in North Carolina, and Shaw Air Force Base in South Carolina. These bases will draw their power from Duke Energy’s new solar plants, which are expected to be operational by September 2026. The initiative represents a significant step towards the DOD's commitment to enhancing its energy resilience and reducing its carbon footprint.
Brendan Owens, the DOD's Chief Sustainability Officer, emphasized the strategic importance of this collaboration. "By supporting the construction of new clean, renewable energy, we are enhancing our resilience in support of the warfighter and DOD's mission," Owens stated. He highlighted that the solar arrays would contribute to a more reliable and resilient commercial electric grid over the 15-year term of the agreement.
The DOD’s clean energy objectives are ambitious and comprehensive:
The DOD has committed to paying $248 million over the next 15 years to secure an estimated 4.8 million MW hours of carbon-free solar energy from Duke Energy. This move aligns with President Biden’s executive order from 2021, which mandates federal agencies to achieve 100% carbon-free electricity usage by 2030. This order underscores the federal government’s role as the largest energy consumer in the nation and its responsibility to foster the growth of America’s clean energy industry in a manner beneficial to taxpayers and communities alike.
Andrew Mayock, Chief Sustainability Officer at the White House Council on Environmental Quality, reiterated the administration’s goals. He noted that this initiative is part of a broader strategy to support the clean energy industry and promote sustainable practices across federal agencies.
The program structure is designed to ensure both financial and operational efficiency. Customers, including the DOD, will continue to receive and pay their typical electricity bills from Duke Energy, with the CFE product charge fixed for the contract’s duration. The cost is influenced by the CFE product charge (PPA price), an avoided cost rate credit, and administrative fees.
Construction of the solar projects must be completed before Duke Energy begins charging customers for the power. The actual CFE purchase premium will be reflected in utility bills starting around 2027. The contract spans 17 years, with 2 years allocated for construction and 15 years for performance. This agreement will support the development of 135 MW of new solar generation in Duke Energy Progress territory, helping the installations achieve 75% of their 2030 CFE requirement. Notably, Fort Liberty is projected to reduce its emissions from electricity by 27% compared to 2022, with potential cost savings by 2040.
Duke Energy’s involvement comes as part of its Green Source Advantage (GSA) program, which aims to provide large business customers access to renewable energy to meet their decarbonization goals. Meghan Dewey, Vice President of Duke Energy, pointed out that many of their business customers, including the DOD, have specific and ambitious decarbonization targets that necessitate access to renewable energy sources.
"This project is a great opportunity to assist our military departments and our warfighters in their decarbonization goals," said Air Force Col. Jennifer Neris. The sentiment was echoed by Rachel Jacobson, the Army's Assistant Secretary for Installation, Energy, and Environment, who described the partnership as "essential for delivering energy resilience for the Army."
The DOD and Duke Energy collaboration is a significant milestone in the United States’ journey toward a sustainable and resilient energy future. It highlights the critical role of public-private partnerships in achieving large-scale renewable energy goals. It sets a precedent for future initiatives to reduce carbon emissions and enhance energy security.
As the federal government continues to push for 100% carbon-free electricity by 2030, initiatives like this will be crucial in driving progress and demonstrating the feasibility and benefits of large-scale renewable energy projects.
In case you missed it - check out Jessica Hunt’s conversation with Paul Garcia on the “Future of Air Force Installation Energy.”
