The U.S. Navy has awarded a $97 million contract to improve energy resilience at Polaris Point, a major military infrastructure investment aimed at enhancing power reliability for naval operations on Guam.
The project involves building a 17,000-square-foot facility to house a Battery Energy Storage System (BESS) and a microgrid controller that will support energy resilience. The Naval Facilities Engineering Command (NAVFAC) awarded the contract to a joint venture between Granite Construction and Obayashi Corp., with completion expected by June 2028, according to a release from Granite.
This will be the Navy’s first microgrid project featuring a BESS on Guam. The system will use lithium-ion batteries, similar to those used by the Guam Power Authority in its civilian power infrastructure, according to a NAVFAC Marianas spokesperson.
The spokesperson explained the project “supports compliance with the Department of Defense (DoD) Instruction 4170.11, which states that DoD components shall take necessary steps to ensure energy resilience on military installations. DoD components shall plan and be able to continuously ensure available, reliable and quality power to accomplish DoD missions from military installations and facilities.”
Unlike some infrastructure projects that benefit both military and civilian sectors, this system is designed exclusively for military use. “The project is isolated to the Navy grid inside the fence line,” the spokesperson said, meaning it won’t directly improve power reliability for Guam’s civilian population.
However, the project is expected to generate economic benefits through local employment and contracting. Marjune Padigos, Granite project manager, told The Guam Daily Post that the company intends to engage local businesses where possible.
“Granite takes pride as a local employer, and to the extent that we can, we will contract with local contractors and suppliers,” Padigos said. “This project keeps skilled workers employed, which in turn contributes to the local economy.”
Granite has built a significant presence on Guam over the past 15 years, delivering numerous projects for local and federal entities. “Our broad strategy for the region, and specifically in Guam, is to support the government’s needs and, in the case of BESS, the Navy’s mission,” Padigos said.
The construction phase presents several challenges unique to Guam’s regulatory environment. “One challenge is that the Guam EPA permitting process can take some time,” Padigos said. “We see an opportunity to work locally to reform this process while still working to protect the local environment. We are hopeful that Gov. Leon Guerrero will provide (her) support and assistance to ensure that this critical DoD project receives expedited approval and permits.”
Even as construction moves forward, the Guam Power Authority has provided some level of assistance with the project. “The Guam Naval Facilities Engineering Command has coordinated and received GPA’s input on this project awarded to improve the Battery Energy Storage System capabilities at Polaris Point,” GPA officials said when contacted for comment.
This coordination reflects a broader pattern of collaboration between military and civilian infrastructure planners. “NAVFAC has collaborated with GPA during this project’s planning and design development to incorporate technical best practices and lessons learned related to BESS installations,” the spokesperson said.
The system will function similarly to GPA’s Agana BESS installation, providing improved power quality and resilience. Both systems use lithium-ion battery technology, though they will operate on separate power grids.
Environmental concerns have been addressed through pre-construction analysis. “The project was analyzed for potential environmental impacts associated with construction and operation activities. The analysis determined that no significant environmental impact would result in the execution of the project and complies with existing regulatory requirements,” the spokesperson said.
Looking beyond this specific project, NAVFAC indicated additional energy improvements may be forthcoming. “NAVFAC has existing programs in place to plan for additional infrastructure addressing energy efficiency, resiliency and reliability. This additional infrastructure may include microgrids, new technology and renewable energy.”
The Department of Defense remains “committed to a resilient energy strategy integrated with our GPA partners and focused on supporting the USINDOPACOM mission in the region,” the spokesperson added.
Curt Haldeman, Granite vice president of regional operations, emphasized the project’s strategic importance in the company’s release: “This project will ensure our continued growth in the Pacific, specifically in Guam. It will boost our strategic advantage and enhance our battery energy storage and microgrid portfolio for Granite.”
NAVFAC structured the agreement as a firm-fixed-price contract, which “places maximum risk and full responsibility on the contractor for all costs and resulting profit or loss.” This contract type “provides maximum incentive for the contractor to control costs and perform effectively … and includes liquidated damages for late completion,” the spokesperson said. “Contract oversight and processes are in place to ensure project delivery within the approved budget, scope and timeline.”
“BESS is a very important project,” Padigos said. “Granite brings its experienced workforce and a strong track record of delivering large projects on Guam. For this project, Granite will draw on the collective experience throughout the company in our other regions.”
