Panel 1: MAPC Presentation

270 views

Published on

Presentation by Helen Aki, Energy Services Coordinator. "What is an ESCO and how does an energy performance contract work?"

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
270
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Panel 1: MAPC Presentation

  1. 1. ESCO & Performance Contracting 101 Municipal Energy Efficiency Finance Workshop November 15, 2012For more information, contact:Helen Aki, Energy Services Coordinator,haki@mapc.org / (617) 451-2770 X 2054
  2. 2. Key Terms ESCO = Energy Services Company ESPC = Energy Savings Performance Contract EMSA = Energy Management Services Agreement ESPC = EMSA
  3. 3. What is ESPC? Up to 20 year term Performance Guaranteed energy savings contracting is a mechanism for ESCO identifies and installs project capital improvements measures; monitors savings and asset modernization. Upfront investment in projects repaid through savings over term of (more than energy contract savings) Annual savings must exceed debt services
  4. 4. Performance Contracting Process IGA ESCO Town Town ESCO choosesprocured Agreement completes proceeds Signed PEA; IGA with through projects;25A RFQ -Breakage identifies EMSA OR fee potential ESCO or RFP completes pays for identified projects IGA IGAIGA = Investment Grade AuditPEA = Preliminary Energy AuditEMSA = Energy Management Services Agreement
  5. 5. Cash Flows1) Town secures project financing COSTS • Common misconception: “the ESCO • IGA breakage fee ($10-50k) pays for the projects.” This is false. • Owner’s Agent2) ESCO is paid as projects are completed fee ($10-50k)3) Energy savings should exceed debt service • Financing for full EMSA (total • Important: keep utility line flat! project cost)4) Savings are measured and verified5) Actual savings reconciled against guarantees
  6. 6. Regional ESCO 2011Objective: To select a single Energy Services Company (ESCO) to provide comprehensive energy services to all 14 participating communities. Arlington  Norwell  Procurement funded under the MA District Local Technical Ashland  Rockport Assistance (DLTA) program in 2011 Chelsea  Sharon  Satisfies public contracting Everett  Sherborn requirements under M.G.L. Ch. 25A §11i Framingham  Sudbury Gloucester  Topsfield Bold = approved IGA agreements Melrose  Wayland as of 10/2012

×