energy performance contracts
Download
Skip this Video
Download Presentation
Energy Performance Contracts

Loading in 2 Seconds...

play fullscreen
1 / 17

Energy Performance Contracts - PowerPoint PPT Presentation


  • 78 Views
  • Uploaded on

Energy Performance Contracts. Chip Barnes. What is an EPC?. Popular way to obtain infrastructure energy efficiency & operational improvements with: No up-front investment by customer Guaranteed energy savings Permanently reduced energy costs. How is this possible?.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Energy Performance Contracts' - gillian-vincent


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
what is an epc
What is an EPC?
  • Popular way to obtain infrastructure energy efficiency & operational improvements with:
    • No up-front investment by customer
    • Guaranteed energy savings
    • Permanently reduced energy costs
how is this possible
How is this possible?
  • Proposed energy savings are used to pay for the financing of the improvement costs with savings to spare
  • Once improvement costs are paid off (usually 8-12 year term) 100% of savings stays with customer
areas of potential savings
Areas of Potential Savings
  • Energy Systems including:
    • Lighting – indoor and outdoor
    • Heating Systems – Large Boilers
    • Air-Conditioning – Chillers, Cooling Towers
    • Building Improvements – “Envelope”
    • Controls – sensors, thermostats, etc.
    • Less Maintenance Required (e.g. light bulbs)
who s involved
Who’s Involved?
  • Customer: Municipalities, Universities, Schools, Hospitals, Military/Gov’t.
  • ESCO – Energy Saving Companies
    • “Big 5” Pepco Energy Services, Constellation Energy, Johnson Controls, Noresco, Energy Systems Group
benefits drawbacks
Benefits & Drawbacks
  • Benefits:
    • Accountability
    • Risk-Reduction
    • No Capital Outlay – project is financed
    • Cash flow at pre-determined level
    • Risks borne by ESCO
    • Guaranteed Savings
    • Expertise of ESCO
    • Reduced Environmental Impact (footprint)
benefits drawbacks1
Benefits & Drawbacks
  • Drawbacks:
    • Establishing a baseline can be difficult
    • Difficulty in adjustments once project begins
    • Operational Savings hard to define
    • Costly finance charges
    • Required maintenance agreements expensive
    • ESCO gimmicks
    • Control of Facilities
    • Substantial portion of savings paid to ESCO & finance
the process
The Process
  • Potential areas of savings identified either by customer, ESCO or both
  • Comprehensive Energy Audit Performed by ESCO engineers
  • Contingent cost assigned to engineering study
  • Proposal – results of study presented to client
the proposal
The Proposal
  • Detailed outline of energy and operational improvements (Scope of Work) & associated savings
  • Baseline calculations & project timeline
  • Measurement & Verification (M&V) Guidelines
  • Guarantees – performance bond
  • Maintenance agreement(s)
challenges
Challenges
  • Long time-table: EPC’s usually take 18-36 months to complete – WHY??
  • Complex Projects
    • Multiple decision-makers: boards, facilities managers, “fiefdoms”
    • Lengthy engineering studies
    • Resistance to Change, Lack of Incentive
    • Difficult to get “buy-in” from all parties
more challenges
More Challenges
  • Capital Project vs Performance Contracts
  • Difficult to get “buy-in” from key players
    • No incentive for facilities manager(s)
    • Resistance to Change
    • Strong Leadership Required – champion needed to drive project
pg county performance contract
PG County Performance Contract
  • ESCO – Johnson Controls
  • Contract Covered:
    • County Courthouse
    • Police Service Complex
    • Corrections
improvements
Improvements
  • Project involved retrofit of 8,667 light fixtures
  • Installation of building occupancy sensors
  • Upgrade of building control systems
  • New roof-top A/C units Pump and Motor Replacement
  • New Variable Frequency Motors/Drives
  • Cooling Tower Replacement
  • LEED evaluation of Courthouse
project savings
Project Savings
  • $12,201,640.00 over 14-yr period!
  • $871,546.00 per year!
  • $72,629 per month!
other md counties
Other MD Counties
  • Baltimore City – LED upgrade of traffic signals saving $900,000 per year.
  • Howard County – building energy improvements saving $2.4M per year
  • MEA – rotates contracts between “BIG-5”
how you can get involved in your county
How YOU can Get Involvedin Your County
  • Call and/or email your:
    • County executive and councilman/woman
    • Write a letter to the editor
    • Call into talk radio and mention EPC’s
ad