Energy Savings Performance Contracting

Transcription

1 Energy Savings Performance Contracting Presented by David J. Anderson, Executive Vice President October 21, 2009 The 2009 New Jersey Clean Energy Conference and Leadership Awards

2 Presentation Overview Introduction Energy Savings Performance Contracting (ESPC) What is ESPC? Are you a Good Candidate? What can ESPC Accomplish? The Steps of An ESPC? Case Studies Benefits of ESPC

3 Introduction

4 Nation s Largest Independent Energy Solutions Company Over 30 years of experience managing energy usage, supply and assets Implemented over $4 billion of energy solutions NJ DPMC Certified as an ESCO (C036) First NAESCO Accredited Energy Services Provider US DOE Qualified Energy Services Provider Over 650 employees in 54 offices throughout North America

5 Our Core Business Focused: Energy Services and Renewable Solutions are all we do! Vendor-Neutral: Ameresco is not a manufacturer. We recommend the equipment and systems that are in the best interest of our clients, then procure them competitively. Fuel-Neutral: We are not a subsidiary of a utility. We objectively develop fuel-switching, cogeneration and renewable energy opportunities for our clients when applicable. Experienced: Awarded more than 600 energy savings performance contracting projects. Dedicated: Committed to 100% customer satisfaction.

6 Services and Solution Options Energy Savings Performance Contracts include energy efficiency and may incorporate any one or all of the following:

7 NJ and Regional Customers (Partial Listing) Rutgers University, NJ Fort Monmouth, NJ McGuire Air Force Base, NJ Reckitt Benckiser Center for Innovation, NJ Camden Public Schools, NJ Northern Valley High School, NJ Patchogue Medford High School, NJ Simon Properties, NJ Menlo Park Mall Newport Centre Mall Huntington Union Free School District, NY Clarkstown Central School District, NY New York City Housing Authority, NY Dept. Military & Veterans Affairs - State Armories, PA Big Spring School District, PA US Naval Station, Philadelphia, PA State Correctional Institution Dallas, PA Dept General Services; Regional Office Buildings, PA Clarks Summit State Hospital, PA

8 Energy Savings Performance Contracting (ESPC)

9 What is Performance Contracting? Energy Savings Performance Contracting (ESPC) is a technique that uses utility cost savings to reinvest into the facility or property that covers the cost of improvement within a specified period of time. All institutional, commercial and industrial building owners/managers can use an ESPC to address their portfolios. Maintenance Costs Energy Costs Before Improvements After Improvements Savings Repay Improvements

10 Are You a Good Candidate for ESPC? High operating costs. Aging buildings and equipment in need of modernization. Decreased asset value. Lack of in-house personnel expertise/availability to address facility needs. Constrained capital budgets, or no desire to deploy capital for building upgrades and improvements.

11 What Can ESPC Accomplish? Significant reduction in utility expenses of up to 30%. Infrastructure modernization Installation of new energy related equipment/systems. Incorporation of capital improvements. Equipment inventory consistency. Better management and tracking of energy use. Shift risk of delivery and performance from property owner to ESCO. Environmental Stewardship mitigation of greenhouse gases Implemented with no up-front capital costs and guaranteed savings for the project term.

12 The Steps of An ESPC

13 Development Phase DETAILED EVALUATION Collect Fee N N Conduct Detailed Evaluation Study Model Project Options Project Meeting Customer Criteria? Y Prepare Energy Services Agreement ESA Executed? Y Establish a baseline for energy use and cost. Confirm Investment/business criteria. Identify and evaluate specific utility and maintenance savings opportunities. Determine final composition of energy efficiency and infrastructure improvements. Costs for engineering rolled forward into project implementation. Execute ESA and secure project financing.

14 Implementation Phase DESIGN, CONSTRUCTION AND PERFORMANCE N Execute Design/ Build Contracts Administer Project Design & Construction Project Acceptance Executed? Y Draw Permanent Financing Performance Services Procure/award design and construction contracts. Manage the installation and commissioning of the project. Train staff and provide on-going maintenance service, applicable. Commissioning and savings performance test conducted at construction completion to obtain customer acceptance. Maintain performance and verify savings to reconcile guarantee.

15 Case Studies

16 Case Study 1: 67 Properties; 5,269 Units Overview of Improvements $(000) Utility Spend Total Savings % Saved Total $15,540 $4,265 27% Electric $5,152 $1,992 38% Gas $1,953 $407 21% Water $3,702 $973 26% Allowances $4,733 $892 19%

17 Project Costs and Savings Summary Project Parameters 20 Year Cash Flow

18 Case Study 2 Two Correction Facilities and a Highway Patrol Administration Building; 1,071,000 sq. ft. Energy Savings Performance Contract $4,533,071 Annual Savings of $500,000 a year 15 year Term Overview of Improvements 3.2MW of LFGTE Cogeneration Electric Power Sold to the City Electric Cooperative Waste Heat Generated to Provide Hot Water and Steam Lighting Energy Management Controls Steam Traps Central Plant Improvements

19 Benefits of ESPC

20 Benefits of ESPC Eliminates need for up-front capital. Fund project entirely from savings. Reduces facility utility demand requirements. Modernizes facility infrastructure and increases asset value. Mitigation of green house gases. Single point of responsibility. Provides protection against future rate increases and market volatility. ESCO assumes implementation cost and savings performance risks. Fixed cost Guaranteed energy savings

21 Thank You David J. Anderson Executive Vice President 111 Speen St., Suite 410 Framingham, MA (508)