18-07-2012, 03:06 PM
Energy Savings Performance ContractingESPC
Energy_Savings_Performance_Contracts_DOE_presentation.ppt (Size: 788.5 KB / Downloads: 366)
Definition of ESPC
ESPC is a no-upfront-cost contracting method. The contractor incurs the cost of implementing energy conservation measures (ECM) and is paid from the energy, water, wastewater and operations savings resulting from these ECMs.
ESPC Achievements
Over 400 Federal ESPC projects through FY05
19 different Federal agencies and departments in 46 states
DOD has done 60% of the projects and 70% of the investment dollars
Why do an ESPC?
Meet energy reduction and environmental goals
Affirm agency commitment to these goals
Improve facilities: comfort and reliability
Provide critical facility data
Save taxpayer money
Faster process
Better quality
Good for community relations
Fixed price contracts - change orders aren’t needed
Avoid cost of delay and inaction
Fast construction
Avoid deferred maintenance
Why Do You Need M AND V?
Verifies guaranteed savings:
1. ESPCs are financed using avoided cost as a revenue to service debt.
2. A critical part of this financing tool is the ESCO-provided savings guarantee.
3. M&V assures the government that savings have been fully achieved before full payment is made to ESCO.
For a successful DO, both parties must understand and agree on the M&V strategy.