Army launches tranche II of Strategic Capital Initiatives focused on energy resilience

The U.S. Army is advancing the second tranche of its Strategic Capital Initiative (SCI), issuing a major Request for Proposals (RFP) aimed at securing resilient, independent power for key installations. This phase of the initiative, centered on Pillar 1: Energy Resilience and Dominance, invites private-sector partners to develop, finance, and operate commercial power generation facilities on Army land. This initiative is a critical step toward modernizing the Army's energy infrastructure and ensuring mission readiness.

A Request for Proposals for Commercial Power Generation was published on June 15, 2026, launching the next phase of the Army's public-private partnership strategy.

Tranche II Initiative: Power Generation and Energy Resilience

This initiative solicits competitive proposals for long-term Enhanced Use Leases (EULs) to build and operate power generation facilities. These projects are designed to provide power to the commercial grid during normal operations while delivering essential, resilient power to the installations during grid outages. This ensures that mission-critical operations can continue uninterrupted for at least 14 days.

The RFP seeks proposals for projects at the following seven installations:

• Aberdeen Proving Ground, Maryland
• Fort Detrick, Maryland
• Fort Drum, New York
• Letterkenny Army Depot, Pennsylvania
• Picatinny Arsenal, New Jersey
• Tobyhanna Army Depot, Pennsylvania
• West Point Military Reservation, New York

Partnership Model and Project Scope

Under this public-private partnership model, the selected industry partner will be responsible for the entire lifecycle of the project-including financing, design, construction, operation, and decommissioning-without monetary contribution from the Army. The Army will provide the non-excess land through a long-term lease, typically for an initial term of 50 years.

The key objectives and requirements for the projects include:

• Technology Focus: The Army is open to a range of power generation technologies, including solar, natural gas, geothermal, and nuclear. Proposals for nuclear energy are capped at 500 MW per unit.
• Resilience Mandate: In the event of a grid outage lasting more than four hours, the facility must be able to provide continuous, islanded power to the host installation.
• Commercial Viability: During normal operations, the power generated will be sold to a third-party off-taker, which the private partner is responsible for securing. This provides a revenue stream for the partner while utilizing Army land to strengthen the regional power grid.
• Consideration: In exchange for the lease, the partner will provide in-kind consideration to the Army. While the provision of energy resilience is a mandatory condition of the lease, it is not considered the primary form of rent. The Army's preference is for in-kind consideration, consistent with 10 USC §2667, that improves installation infrastructure, enhances mission capability, or minimizes Army costs.

This initiative represents a significant step in the Army's strategy to leverage private-sector capital and expertise to build a more resilient, modern, and capable force, ensuring energy security is a cornerstone of national defense. Proposals are due by June 29, 2026.