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Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
Energy Savings Performance Contracts
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Energy Savings Performance Contracts

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  • The majority of the savings are passed along to the ESCO in the form of the annual payment.  Btu savings per dollar: an inflation adjusted (6700) OR historical (7200) Btu savings per dollar. 
  • Transcript

    • 1. 1 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name Energy Savings Performance Contracts Southeast Sustainability Summit August 21, 2013 Julia Kelley Group Leader Residential, Commercial and Industrial Energy Efficiency
    • 2. 2 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name What we’ll cover • What is an Energy Savings Performance Contract (ESPC) • Who Uses ESPCs? • Explanation of DOE and ORNL involvement in ESPCs • ESPCs in the Southeast – News and Examples • How do energy efficient technology vendors engage?
    • 3. 3 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name What we’ll cover • What is an Energy Savings Performance Contract (ESPC) • Who Uses ESPCs? • Explanation of DOE and ORNL involvement in ESPCs • ESPCs in the Southeast – News and Examples • How do energy efficient technology vendors engage? • How can the public sector encourage ESPCs in your state or city?
    • 4. 4 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name What is an ESPC? An Energy Savings Performance Contract (ESPC) allows Federal agencies to procure facility energy improvements: • with no up-front capital cost and, • without special appropriations from Congress
    • 5. 5 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name ESCO and Agency Roles • An Energy Services Company (ESCO) – designs and constructs the energy project – obtains financing to cover costs – guarantees cost savings to cover payments over contract term • The Agency: – Negotiates and awards task order – Pays for the project over time from savings generated from improvement
    • 6. 6 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name The Difference Between Federal ESPCs and Conventional Design/Build Process • Financing - maximum contract terms – 25 years • Cost savings guaranteed to exceed payments • Performance of installed energy conservation measures (ECMs) is guaranteed • ESCO is often responsible for O&M • Measurement and verification of savings is required
    • 7. 7 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name ESPC Payments • Key: ESPCs are budget neutral • ESPCs are paid from savings – guaranteed $ Energy + O&M Cost Savings Before ESPC Contract During ESPC Contract After ESPC Contract Utility Bill + Energy Related O&M ESPCs: Why the interest? Utility Bill + Energy Related O&M Utility Bill + Energy Related O&M Payments to ESCO Savings Excess Savings
    • 8. 8 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name Energy Conservation Measures (ECMs) In all Technology Categories • Boiler and chiller plants • Energy management control systems • Building envelope • HVAC • Chilled/hot water and steam distribution • Lighting • Electric motors and drives • Refrigeration • Distributed generation
    • 9. 9 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name Energy Conservation Measures (ECMs) in All Technology Categories • Renewable energy • Energy/utility distribution • Water and sewer • Electrical peak shaving/load shifting • Rate adjustments • Energy-related process improvements • Commissioning • Advanced metering • Appliance/plug load reductions
    • 10. 10 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name What we’ll cover • What is an Energy Savings Performance Contract (ESPC) • Who Uses ESPCs? • Explanation of DOE and ORNL involvement in ESPCs • ESPCs in the Southeast – News and Examples • How do energy efficient technology vendors engage?
    • 11. 11 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name Who uses ESPCs? • Public sector including: – Federal government – School districts – Municipalities – State government – Universities • Available to private sector but . . . . – Not as popular in the private sector – Want a faster payback – Some high profile private ESPCs – including Empire State Building
    • 12. 12 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name What we’ll cover • What is an Energy Savings Performance Contract (ESPC) • Who Uses ESPCs? • Explanation of DOE and ORNL involvement in ESPCs • ESPCs in the Southeast – News and Examples • How do energy efficient technology vendors engage?
    • 13. 13 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name DOE’s Federal Energy Management Program Mission – FEMP works with key individuals to accomplish energy change within organizations by bringing expertise from all levels of project and policy implementation to enable Federal Agencies to meet energy-related goals and to provide energy leadership to the country.
    • 14. 14 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name FEMP Support of ESPCs in federal sector • Developed and Manages IDIQ Contract with ESCOS for ESPCS for all federal agencies to use • Assigns project facilitators to ESPC projects • Offers Renewable Energy and Advanced Technologies Planning and assistance to federal sites • Provides ESPC training
    • 15. 15 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name What we’ll cover • What is an Energy Savings Performance Contract (ESPC) • Who Uses ESPCs? • Explanation of DOE and ORNL involvement in ESPCs • ESPCs in the Southeast – News and Examples • How do energy efficient technology vendors engage?
    • 16. 16 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name North Carolina – ESPC project example • Appalachian State University – campus-wide renovation for campus in Boone just announced in July • $16.5 million project • Includes: – Heating and air-conditioning upgrades – Lighting upgrades – Water conservation upgrades • Will employ up to 266 workers over a 22-month construction period • 13 year pay-back for project
    • 17. 17 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name SE Energy Savings Performance Contracting Dollars per capita • Source: Energy Services Coalition • Estimated amount of ESPC investments in state and local buildings as reported Boxes: Total Investment in Performance Contracting in Millions
    • 18. 18 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name ESPC by State – Enabling Legislation • Visit: – http://web.ornl.gov/info/esco/legislation/newesco.shtml • Includes clickable map with – State energy program web sites – Citations and links to state enabling legislation for performance contracting – Information on public sector applicable areas • School districts • Municipalities • State colleges and universities counties • State • Any public agency • Let us know if your state info needs updating
    • 19. 19 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name What we’ll cover • What is an Energy Savings Performance Contract (ESPC) • Who Uses ESPCs? • Explanation of DOE and ORNL involvement in ESPCs • ESPCs in the Southeast – News and Examples • How do energy efficient technology vendors engage?
    • 20. 20 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name How do energy efficient technology vendors engage? • It’s the ESCO that purchases the equipment for the project • National Association of Energy Service Companies – www.naesco.org – Site includes “finding a provider”, market analysis, etc. – 2013 NAESCO 30th Annual Conference, Nov. 12-14 in Orlando, FL
    • 21. 21 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name FEMP Info for technology vendors • List of ESCOs that have competed and been awarded a master DOE ESPC contract • List of ESCOs that have been screened by a qualifications review board of federal agencies http://www1.eere.energy.gov/femp/financing/espcs_companies.html • Guide on Selling Energy-Efficient Products to the Federal Government – http://www1.eere.energy.gov/femp/pdfs/selling_eeproducts_to_ gov.pdf • Doing business with the federal government fact sheet – http://www1.eere.energy.gov/femp/pdfs/doing_business_with_g ov.pdf
    • 22. 22 Managed by UT-Battelle for the U.S. Department of Energy Presentation_name Julia Kelley Phone: 865-574-1013 Email: kelleyjs@ornl.gov

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