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Quick Take: Will the military be the next market driver for smart grid? We think it's likely – and the story below certainly suggests that outcome. Not only will they be promoting renewables, which will need grid interconnection, they are already early proponents of microgrids and energy storage. Utilities with military bases in their territory also need to remember that the military is not a typical customer. Once they get their marching orders, they will proceed full speed. They will not take lightly to the bureaucratic delays some utilities have used as a tactic to forestall distributed generation. - By Jesse Berst

Katherine Hammack,s assistant secretary of the Army for Installations, Energy & the Environment, explained the strategy at a media roundtable earlier this month and outlined the Army's net zero strategy. "Specifically, a net zero energy installation produces as much energy annually as it uses, and this does not mean replacement of current energy requirements with onsite energy production. It means that installations address energy efficiency  as the primary first step and then evaluate, repurpose and reuse energy as well as energy recovery."

The Army has released a draft request for proposal that could mean numerous projects across the country, an initial move toward making its aggressive renewables goal a reality.

Along with efficiency and conservation, Army installations will ideally have alternative forms of energy to allow them to island, and to continue to provide energy if the power grid fails. Hammack commented that capability is "operationally necessary, financially prudent and critical to our mission. We know that power grids are increasingly vulnerable and expose Army operations to risk." She noted that the vulnerability risks could come from terrorist attack, natural disasters such as forest fires and extreme weather such as tornadoes.

Hammack also said the Army recognizes its risk mitigation strategy must be fiscally responsible, a responsibility that falls to the Energy Initiative Task Force (EITF). The EITF is the central managing office for large-scale renewable energy projects. Among its duties are leveraging private sector financing and ensuring that the entire process of working with private industry on the renewable energy projects is consistent, efficient and ensure maximum return on investment.

Continued exploration of microgrids and energy storage are also part of the Army's overall strategy.

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

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