ENERGY PERFORMANCE CONTRACTSTaking the Risks Out of Energy Efficiency          Retrofits in Buildings       Sustainable Bu...
TOPICS TO BE COVERED•   Background on ESA Canada•   Primer on Energy Performance Contracting•   Role of Energy Service Com...
ENERGY SERVICES ASSOCIATION OF             CANADA• Incorporated August 2010• 8 founding independent energy service compani...
WHAT IS AN ENERGY PERFORMANCE               CONTRACT- Involves: a building owner (department) and energy  service company ...
BENEFITS OF ENERGY PERFORMANCE              CONTRACTS• Turnkey – one contract managing many  activities• Releases pressure...
ILLUSTRATION OF HOW EPCs          WORK
FEE-BASED VS. PERFORMANCE BASED                  Fee based           Performance based           The owner is the         ...
ROLE OF ESCOs• Think of an ESCO as an extension of building  owners/operators resources  – Carries out feasibility studies...
ADDRESSING DEFERRED          MAINTENANCE• Projects or facilities can be bundled to  increase scope and energy savings• Gua...
CANADIAN CASE STUDIES• 37 Case Studies of successful projects on  ESAC’s web site  – 2 federal buildings  – 4 DND bases  –...
DISCUSSIONPeter LovePresidentEnergy Services Association of Canada416-644-1788peter@energyservicesassociation.cawww.energy...
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Energy services association of canada jun6

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Peter Love of the Energy Services Association of Canada presents on Energy Performance Contracts in delivering risk free performance improvements for property owners

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Energy services association of canada jun6

  1. 1. ENERGY PERFORMANCE CONTRACTSTaking the Risks Out of Energy Efficiency Retrofits in Buildings Sustainable Buildings Canada June 6, 2012
  2. 2. TOPICS TO BE COVERED• Background on ESA Canada• Primer on Energy Performance Contracting• Role of Energy Service Companies• Benefits of Energy Efficiency Upgrades• Sunnybrook Hospital Case Study• Discussion
  3. 3. ENERGY SERVICES ASSOCIATION OF CANADA• Incorporated August 2010• 8 founding independent energy service companies – Ainsworth - Johnson Controls – Ameresco - MCW Custom Energy Solutions – Direct Energy - Siemens – Honeywell - Trane• Represent >90% $450 million/year market for guaranteed Energy Performance Contracts (EPC)
  4. 4. WHAT IS AN ENERGY PERFORMANCE CONTRACT- Involves: a building owner (department) and energy service company (ESCO)- Savings financing: comprehensive measures with guarantees that the energy savings will be sufficient to finance the cost of the project- Performance guarantee: Transfers technical and financial risk to ESCO
  5. 5. BENEFITS OF ENERGY PERFORMANCE CONTRACTS• Turnkey – one contract managing many activities• Releases pressure on capital funding allocations• Tried and true approach – used by organizations across Canada since 1993
  6. 6. ILLUSTRATION OF HOW EPCs WORK
  7. 7. FEE-BASED VS. PERFORMANCE BASED Fee based Performance based The owner is the Private energy service integrator. They own risk company is the integrator, to performance (lack of collaboratively works with savings or cost overruns), vs. owner, harbours most of sub-consultants paid for the risk, brings capital, fees to deliver tasks or capacity and skill, results scope, results generally are measured, proven not measured. success process to deliver.
  8. 8. ROLE OF ESCOs• Think of an ESCO as an extension of building owners/operators resources – Carries out feasibility studies / energy audits – Puts together a plan of action –, design, implementation plan, purchase, installation, commissioning and measurement/verification of savings. Let’s not forget training and awareness. – Arranges for financing – Reports to facility manager on an on-going basis
  9. 9. ADDRESSING DEFERRED MAINTENANCE• Projects or facilities can be bundled to increase scope and energy savings• Guaranteed energy savings from EPC can also be used to fund non-energy deferred maintenance priorities• Typically achieved by extending the term of the EPC contract
  10. 10. CANADIAN CASE STUDIES• 37 Case Studies of successful projects on ESAC’s web site – 2 federal buildings – 4 DND bases – 6 provincial/municipal buildings – 14 universities/colleges/school boards – 7 hospitals – 4 commercial/industrial
  11. 11. DISCUSSIONPeter LovePresidentEnergy Services Association of Canada416-644-1788peter@energyservicesassociation.cawww.energyservicesassociation.ca

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