Electrical energy and cost savings potential at DOD Facilities

The US Department of Defense (DOD) has been mandated to reduce energy consumption and costs by 20% from 1985 to 2000 and by 30% from 1985 to 2005. Reduction of electrical energy consumption at DOD facilities requires a better understanding of energy consumption patterns and energy and financial savings potential. This paper utilizes two independent studies—EDA (End-Use Disaggregation Algorithm) and MEIP (Model Energy Installation Program)—and whole-installation electricity use data obtained from a state utility to estimate electrical energy conservation potential (ECP) and cost savings potential (CSP) at the Fort Hood, Texas, military installation and at DOD nationwide. At Fort Hood, the authors estimated an annual electricity savings of 62.2 GWh/yr (18%), a peak demand savings of 10.1 MW (14%), and an annual energy cost savings of $6.5 million per year. These savings could be attained with an initial investment of $41.1 million, resulting in a simple payback of 6.3 years. Across the DOD, they estimated an annual electricity savings of 4,900 GWh/yr, a peak demand savings of 694 MW, and an annual energy cost savings of $316 million per year. The estimated cost savings is 16% of the total nationwide DOD 1993 annual energy costs. These savings could be attained with an initial investment of $1.23 billion, resulting in a simple payback of 3.9 years.