Energy Savings Performance Contracting Southwest CERT April 2, 2012

Transcription

1 Energy Savings Performance Contracting Southwest CERT April 2, 2012 Energy Services Coalition, Minnesota Chapter Madonna Rykken, Ben Glynn

2 Agenda What is Performance Contracting (PC)? How does it work? Benefits How to prepare? Case Studies

3 Issues Facing Public Entities Limited Revenue Aging Public Facilities Health, Public Safety, Environmental Issues Evolving Regulatory Requirements: Health Related (Asthma, Allergies, Mold) Comfort and Productivity Concerns Energy Pricing Uncertainties

4 What is Energy Savings Performance Contracting? The use of guaranteed savings from the maintenance & operations budget (utilities) as capital to make needed upgrades and modernizations to your building environmental systems, financed over a specified period of time. - U.S. Department of Energy

5 Where do the dollars come from? Source of Savings Utilities Operational Capital Cost Avoidance* Gas Electric Fuel Oil Water Sewer Equipment & Supplies Outsource Costs Residual Damage Administrative Major Equipment Structural Infrastructure * Budgeted Deferred maintenance or equipment replacement Re-direct the $ s paid to the Utilities - to purchase new Capital Equipment

6 Turnkey Implementation School or City or County or Business ESCO Project Development Engineering Funding Formation Bidding Process Project Implementation Energy Auditing Feasibility Surveys Information Collection System Design Savings Calculation Utility Rebates Grants Private Financing Scope/Specifications Proposal Solicitation Vendor Interviews Project Management Issue Subcontracts Commissioning Budget Reallocation Bid Selection Establish Deadlines Operations & Maint. Delivering comprehensive results from a single source 6

7 MECHANICAL Heating Systems Ventilation Systems Air Conditioning Plumbing/Drainage Building Controls Fire Prevention WATER AND WASTE Water purification facilities Water sewage facilities Waste utilization Landfill gas capture RENEWABLE ENERGY Solar Photovoltaic Solar thermal Wind Turbine Generators Geothermal Installations Biomass plants Typical Upgrades ARCHITECTURAL/ STRUCTURAL Roofing, Windows, Ext. Doors Foundation & Exterior Walls Flooring & Ceilings Interior Walls/Doors/Millwork Painting & Window Coverings Accessories & Equipment ELECTRICAL Power & Distribution Interior Lighting Exterior Lighting Emergency Power Fire Alarm System Comm / IT systems Security Systems Clock Systems PROPERTY / SITE Roadways / Driveways Underground Utilities

8 Traditional Procurement vs ESPC Traditional Bid / Spec Low bid awarded based on specifications Project costs funded by capital budget Piecemeal approach based on available dollars Up-front fee for evaluation/studies Performance & savings are not guaranteed Multiple contracts with multiple vendors Contractors have no accountability to lifecycle costs Owner assumes risk Performance-Based Awarded based on performance & lifecycle costs Payments for projects are offset by guaranteed savings freeing up capital for other needs Comprehensive approach No up-front fee required Long-term performance & savings are guaranteed One contract, single-point accountability Performance-based contractor is tied to guaranteeing savings over term of contract Performance contractor takes risk

9 Benefits of Performance Contracting Significantly reduce energy use Improve facilities environment Reduce deferred maintenance Avoid expenditure of capital Reduce operations and maintenance Improve productivity Reduce waste Fund projects through energy savings Create local jobs Savings Comfort Productivity Jobs Energy Liability Repairs

10 How To Prepare? Identify Challenges and Goals Establish main project point of contact Gather Information: Utility records: 24 months minimum Building data: location, square footage, yr built, hrs of occupancy, drawings (mechanical, electrical, etc) Equipment type: lighting, HVAC, plumbing, building envelope, energy management systems Equipment status: age, operational efficiency and repair history, anticipated replacement point and cost Gather energy audits: PBEEEP, or other Identify energy efficiency and/or renewable energy investment goals

11 Best Practices Utilize team approach for project development include all sites Define project success early have goals Utilize State GESP Office tools, best practices and technical support Establish on-going update/input meetings Stay focused on definition of success update if necessary Stay engaged after project completion continuous communication of results

12 Case Studies City of Arlington Project Summary: $650,000 cost of project Annual savings - $84, year term 4 buildings Solutions Completed: Lighting upgrades, occ. Sensors Energy efficient motors and pumps w/ VFD s Water saving retrofits on fixtures Central heating & cooling plant upgrades Wastewater Treatment Plant upgrades Mechanical system improvements Temperature control system upgrades City of Glencoe Project Summary: $960,000 cost of project Annual savings: $86, year term 3 Buildings Street and Security Lighting Solutions Completed: Lighting, Temperature Controls, Water Upgrades Building Envelope issues Traffic Signal Upgrades Air Handling Unit replacements Variable speed drives, high efficiency motors & pumps Fire alarm & security upgrades

13 Learning More For more information contact: Madonna Rykken Ben Glynn Energy Services Coalition, Minnesota Chapter