The U.S. Army would like to save energy and money spent on energy. In 2010, U.S. Army installations spent over $1.2 billion on energy utilities. The Army has a goal of having "Net Zero Energy Installations," in which installations produce as much energy as they use in a year.

In a study for the U.S. Army, RAND Arroyo Center finds that when the Army collaborates with utility companies, both enjoy tremendous benefits.

For the Army, collaboration can help reduce energy consumption, save money, tap into expertise and advice, and fund energy projects that would be difficult to finance with traditional sources.

For the utility companies, collaboration can help increase profits, improve the company's image, and reduce demand, obviating or delaying the need to provide additional capacity.

Such collaboration can also help both installations and utilities meet their energy conservation, renewable energy, energy security, and other goals. One example is at Kentucky's Fort Knox, home to 23,000 soldiers, family members, and civilians.

Working closely with Nolin Rural Electric Cooperative Corporation (RECC) in Utility Energy Service Contracts, the installation's award-winning energy-savings program includes implementing ground source heat pumps, high-efficiency lighting, boiler upgrades, photovoltaics, solar domestic water heating and other renewable and energy efficiency projects.

Through such activities Fort Knox had a 58% reduction in absolute energy consumption between FY96 and FY 2006.

But while many Army installations are working closely with utility companies, a number of barriers limit collaboration or make it difficult.

For example, some utility companies are reluctant to collaborate or enter into Utility Energy Service Contracts with installations. The study makes recommendations on how the Army can remove the barriers and increase collaboration.