Guaranteed Energy Savings Performance Contracting Overview
Learn about the concept of guaranteed energy savings performance contracting, a method that allows the re-purposing of utility budgets for infrastructure modernization, economic development, and environmental stewardship. Discover the benefits, money flow process, and various applications of this innovative approach to energy efficiency and sustainability.
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Presentation Transcript
Guaranteed Energy Savings Performance Contracting Energy Services Coalition www.energyservicescoalition.org
What is it? The use of guaranteed savings from the maintenance and operations budget (utilities) as capital to make needed upgrades and modernizations to your building environmental systems, financed over a specified period of time. -United States Department of Energy
Another Perspective A re-purposing of utility dollars to effect . . . Infrastructure Modernization Economic Development Environmental Stewardship
Benefits of Guaranteed Energy Savings Performance Contracting Long Term Reduction in Operating Costs Improved Learning and Working Environments Elimination of Deferred Maintenance Lists Reducing Capital Needs Creates local construction job opportunities
How Does The Money Flow? Client Excess Savings Utility and operations budget Finance Repayment ESPC Project Finance Finance Savings from Improvements
To Do What? 100% Dispersion of Technologies in Energy Saving Performance Contracting 90% 80% by ESCOs (2005) 70% 60% Adapted from ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY LBNL-55002 Public and Institutional Markets for ESCO Services: Comparing Programs, Practices and Performance 50% 40% 30% 20% 10% 0% Other DG Other HVAC Air quality Lighting Boilers Controls Chillers Miscellaneous Cogeneration Renewables Water heaters Other Measures Backup generation Water conservation Building envelope High-efficiency motors Distribution/ventilation Geothermal heat pumps Variable speed drives (VSD) Packaged/roof-top/split systems Industrial process improvements
Applications Buildings Transportation Water purification facilities Water sewage facilities Waste utilization Solar and wind applications
Typical Process Project Development Performance Management Workshops and Interviews Measurement & Verification Comprehensive Energy Audit S Single Source Single Source of Responsibility of Responsibility Project Commissioning Funding Coordination Training Engineering and Design Construction InstallationConstruction Equipment Selection Management Implementation
Financing Vehicles Tax Exempt Municipal Lease Bonds Traditional Tax Credit Bond Financing Community Development Bonds Grants and Incentives Utility Incentives Federal Incentives
Why Use Guaranteed Energy Savings Performance Contracting? Speed of Process from beginning to post construction Single Point Accountability before, during, and after the construction period. Quality Assurance Performance and savings are guaranteed
Benefits Contractually guaranteed measured savings Integrated project analysis, design, and construction Long term monitoring of savings and performance Services and materials based upon quality and life cycle value, rather than on lowest first cost
More Benefits Infrastructure modernization new more energy efficient systems and devices Environmental stewardship reduced Green House Gas emissions Economic development real jobs now Long term reduction in operating costs Improved working and learning environments Elimination of Deferred Maintenance lists Distribution Grid relief Uptake of local utility incentive programs Avoidance of generation requirements Avoids emergency replacement of failing or near end of life equipment and systems Improves attitudes and productivity of working and learning environment
Still More Benefits Inspires good stewardship at homes, in industry and in commercial businesses through public leadership Engages private sector dollars to fulfill public sector needs Can engage underutilized public staff personnel in oversight roles that may not have had other construction projects in economic downturn Transforms the marketplace to think of life cycle value over lowest first cost to obtain long term efficiency Eliminates ongoing repair of failing equipment Lowers complaints and frustration that comes from failing systems and uncomfortable work spaces Employs construction workers one of the hardest hit industries Affords existing maintenance staff an enhanced learning opportunity to be trained on newer technologies.
Measurement and Verification A. Retrofit Isolation: Key Parameter Measurement B. Retrofit Isolation: All Parameter Measurement C. Whole Facility D. Calibrated Simulation International Performance Measurement and Verification Protocol
Questions For more information or assistance with your program or project, contact us at info@energyservicescoalition.org
