Energy Savings Performance Contracting (ESPC) Overview

Transcription

1 Energy Savings Performance Contracting (ESPC) Overview Wesley Malone CEHNC ESPC Program Manager Huntsville Engineering and Support Center U.S. Army Corps of Engineers US Army Corps of Engineers

2 Definition Energy Savings Performance Contract (ESPC) is a partnership between the Customer and an Energy Service Contractor (ESCO). In consultation with the garrison the ESCO provides capital and expertise to make comprehensive energy and water efficiency improvements on facilities and maintains them in exchange for a portion of the generated savings. The ESCO guarantees that the improvements will generate sufficient energy cost savings to pay for the project over the term of the contract.

3 Energy Savings Performance Contracting (ESPC) ESPCs utilize private capital to make infrastructure improvements on military installations Allows Energy Services Companies (ESCOs) to provide Federal customers: energy and water efficiency improvement projects renewable energy projects demand reduction services Implementation and development costs are financed for up to 25 years at competitive interest rates Payment is derived from the savings generated by the improvements Savings must occur or contractor does not get paid

4 Guidance Documents Energy Independence & Security Act 2007 EPACT 2005 and EO ASA-IE MEMO, DA Guidance for Energy Related Projects and Services (19 July 2010) HQDA Policy Guidance for Implementation of an Energy Savings Performance Contract (Nov 2008) ACSIM MEMO, Army Energy Savings Performance Contracting Program Guidance (22 Dec 2008) Federal Energy Management Program (FEMP) Guidance OSD MEMO, Energy Savings Performance Contracts and Utility Energy Services Contracts (24 Jan 2008)

5 How Does ESPC Help the Customer? ESCO fronts the capital costs Financed projects paid from consumption savings Savings ensured by mandatory measurement and verification (M&V) ESCO performs O&M on major systems ESPC saves energy & water to meet goal Customer doesn t have sufficient funds for capital investment Limited DPW maintenance resources $ O&M and Utility Bill Before ESPC Contract Govt. Share Capital Cost Financing & Debt Service O&M and Utility Bill During ESPC Contract O&M and Energy Savings O&M and Utility Bill After ESPC Contract

6 ESPC Acquisition Vehicle HNC has a nationwide MATOC to include Alaska, Hawaii, Germany, Korea and Honduras. The ESPC III MATOC currently has $1.5B in capacity and 14 Energy Service Companies (ESCOs). 14 ESCOs competed evaluating best approach and past experience utilizing a broad scope of work. Performance based work statement to implement energy reduction measures. 3.5 to 25 Years Selection of Contractors 1 3 mo Development & Award Phase 6 18 mo Construction Phase 3 18 mo O&M and Payment Phase 6 23 yrs $95K CEHNC Costs $35K CEHNC Costs 6

7 ESPC Process: Project Initiation Days Days Source Selection ESCO Selection Site Survey Begins 90 Days Government Review & Approval 180 Days Feasibility Study/ Proposal 30 Days SSR Review & Approval Days (depending on Project Complexity) Negotiation/Task Order Award Note: Major impacts to project schedule center around the Army review and approval process which is long and cumbersome.

8 ESPC Program Statistics Projects in payment phase: 53 (49 Army, 4 Navy) Capital investment: $893M Average annual energy savings: $64.5M FY10: Capital Investment: $24.2M FY10: Energy Savings: 64,530 MBTU FY11: Capital Investment: $85.8M FY11: Energy Savings: 303,726 MBTU FY12: Capital Investment: $208.5M FY12: Energy Savings: 705,216 MBTU FY13: Capital Investment: $188.5M FY13: Energy Savings: 455,119 MBTU FY14: Capital Investment: $243.6M FY14: Energy Savings: 984,104 MBTU FY15: Capital Investment: $143.0M FY15: Energy Savings: 333,874 MBTU 8

9 Typical ESPC Energy Conservation Measures (ECMs) Boiler Improvements Chiller Improvements Air Handling Equipment Controls Motors and Drives Upgrade of HVAC Systems Lighting Retrofits Renewable Energy Systems Building Envelope Water & Steam Distributions Electrical Peak Sharing Solar, Photovoltaic Ground Source Heat Pumps Generators Variable Frequency Drives Upgrade of Central Power Plants Metering & Energy Information Systems Gas-fired Infrared Heaters Primary/Secondary Pumping Systems Decentralization of Domestic Hot Water Systems Decentralization of Central Power Plants Wind 9

10 Conclusion ESPC is a proven tool to reduce an installations energy and water consumption. Best solution when upgrades or modernization of existing equipment or systems cannot be funded through existing operating funds (SRM) or with other funding sources (MILCON, ECIP) in the required timeline.

11 Points of Contact Jeffery Watts, Chief, Energy Implementation Branch Wesley Malone, Program Manager Jason Bray, Project Manager Gina Gill, Project Manager Priya Stiller, Project Manager Lisa Gayman, Project Manager Jerry Rowell, Project Manager Oksana Joye, Contracting Officer Bruce Forsberg, Technical Lead

12 Questions Slide 12