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Report: Navy Gave $334M Solar Power Contract Without Proof It Saves Money

Image: Report: Navy Gave $334M Solar Power Contract Without Proof It Saves Money

Navy Secretary Ray Mabus (Photo by Mark Wilson/Getty Images)

By    |   Tuesday, 30 Aug 2016 01:23 PM

The U.S. Navy gave out a $334 million contract for solar power without having documentation to show that the plan was cost-effective, according to the Washington Free Beacon.

A Pentagon Inspector General audit showed that three of the Navy's renewable energy projects did not provide "formal written definition" of the cost effectiveness.

The inspector general wrote in the report that, "Navy personnel could not support the assumptions and calculations made in their assessments because Navy guidance does not include specific steps for evaluating the cost-effectiveness of renewable energy projects and does not require that supporting documentation be maintained."

The auditors called it an "internal control weakness" in the Navy's process.

In the $334 million solar power project, the Navy broke ground in July 2014, but has not yet generated solar power. Navy personnel estimated that the project would generate between $62 million and $77 million in cost savings over 25 years, but had no calculations to back up that claim, according to the Free Beacon.

Navy spokesman Lt. Chika Onyekanne said the Navy takes the report seriously, adding, "The DON pursues renewable energy projects that yield cost savings, guarantee price stability, facilitate improvements in the electrical grid, and reduce the nation's fuel dependence, contributing to long-term energy security."

Secretary of the Navy Ray Mabus has focused on increasing the Navy's focus on renewable energy.

He has promoted a "Great Green Fleet" of Navy warships that is committed to use 50 percent renewable resources for fuels by 2020.

Bloomberg reported that the fleet might accept an offer from Australia to supply biofuel for the fleet.

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The U.S. Navy gave out a $334 million contract for solar power without having documentation to show that the plan was cost-effective, according to the Washington Free Beacon.
us, navy, solar power, contract, money, report
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2016-23-30
Tuesday, 30 Aug 2016 01:23 PM
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