Army must cut energy costs to balance budget

Service's modernization strategy includes investments in cyber, command and control systems.

The Army must reduce energy costs at its installations and on the battlefield to meet the challenges of a Defense Department budget that will shrink $487 billion during the next decade, Gen. Raymond Odierno, the service's chief of staff, told a Pentagon press briefing Friday.

Odierno did not provide details, but in August 2011 the Army launched a program to seek $7.1 billion in private investments for renewable energy plants on its installations, with the goal of those plants producing more energy than they consume. The surplus, generated by solar, wind or geothermal plants, would be sold on the open market.

The Army also must cut its use of fuel on the battlefield, and BAE Systems has proposed a Toyota Prius approach toward developing the new $7.6 billion ground combat vehicle, which would feature a hybrid electric drive and a battery pack to supplement its diesel engine.

Development of the combat vehicle was stalled due to a protest by SAIC Inc. last August against award of the contract to BAE and General Dynamics Corps. The Government Accountability Office dismissed the challenge in December.

The Defense Budget Priorities and Choices paper Pentagon officials released Thursday said the delay from the bid protest freed "funding for other priorities." Odierno told the press briefing that the vehicle remains a key Army program, and he anticipates it will receive $1.7 billion in funding during the next fiscal year.

The Army intends to invest in cyber, command and control systems as part of its modernization efforts, Odierno said, but he did not provide any details.

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