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Energy Management Services

Energy Management Services. Eileen McHugh Municipal Energy Coordinator eileen.mchugh@state.ma.us. Energy Management Services (EMS).

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Energy Management Services

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  1. Energy Management Services Eileen McHugh Municipal Energy Coordinator eileen.mchugh@state.ma.us

  2. Energy Management Services (EMS) EMS is a performance based contract used to install energy efficient facility improvements, with no up front cost, paid for out of guaranteed energysavings from your existing operating budget.

  3. Operating Budget=$1m

  4. Operating Budget=$1m

  5. Energy Services Company ESCO Develop Maintain Design Finance Construct

  6. Procurement Process • M.G.L. c 25A, §11C and §11I • Savings guarantees are mandatory • Costs must be reasonable and competitive • Savings must be reported to DOER annually, including excess and shortfall

  7. Core Components • Technical • Financial • Contractual

  8. Technical • Lighting • Lighting controls • Motors replacement • Energy management system installation and optimization • Variable frequency drives • Hot water reset • Control valves for boilers • Water conservation • Plug load controls (including PCs) • Boiler replacement • Green/renewable technologies

  9. Financial • Where does the money come from? • Existing budget neutral • Energy budget • Maintenance • Capital improvement • Rebates and incentives • Municipal Lease or Other

  10. Contractual • How are you buying this? • How do we measure success? • What are the details of the guarantee? • When do you start to pay? • What happens if….? • Hotter/Colder • Energy prices change • Excess savings/shortfall • Eliminate buildings • Schedule changes

  11. Things You Should Know • Savings carryover • Savings shortfall • Excess savings • Baseline • Measurement & verification – Federal Energy Management Measurement and Verification Guidelines

  12. Examples Belmont • Noresco, 2005 • $1.7m • 10 year contract • Annual savings $200,000+

  13. Examples Somerville • Honeywell, 2007 • $7.8m • 20 year contract • Annual savings $500,000

  14. Examples Springfield • Siemens, 2006 • $15m • 20 year contract • Annual savings $1.2m with $600,000 in utility rebates

  15. EMS Web Page • EMS Guide • Model RFP, RFQ, & Contract • Best Practices • Links • Case Studies

  16. Contact Eileen McHugh Department of Energy Resources eileen.mchugh@state.ma.us (617) 626-7305 www.mass.gov/doer “Energy Management Services”

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