Wednesday, January 7, 2009

DOE's Latest Building Energy Savings Contracts

The federal government, with upwards of half a million buildings owned or leased, is the largest single user of energy in the country. Less than three weeks ago, the Department of Energy (DOE) announced the award of 16 Indefinite Delivery Indefinite Quantity (IDIQ) energy savings performance contracts (ESPCs), each worth up to $5 billion! The contracts were awarded to the following energy service companies (ESCOs):

- Ameresco, Inc. (Framingham, MA)
- Chevron Energy Solutions (Eagan, MN)
- Clark Realty Builders (Arlington, VA)
- Consolidated Edison Solutions (White Plains, NY)
- Constellation Energy Projects & Services Group (Baltimore, MD)
- FPL Energy Service (North Palm Beach, FL)
- Honeywell International (Golden Valley, MN)
- Johnson Controls Government Sysytems (Milwaukee, WI)
- Lockheed Martin Services (Cherry Hill, NJ)
- McKinstry Essention (Seattle, WA)
- NORESCO (Westborough, MA)
- Pepco Energy Services (Arlington, VA)
- Siemens Government Services (Reston, VA)
- TAC Energy Solutions (Seattle, WA)
- The Benham Companies (Oklahoma City, OK)
- Trane U.S. (McEwen, TN)

Federal agencies are able to access these contracts and use them for energy savings projects at facilities both nationally and internationally. Congress authorized ESPCs to encourage federal agencies to become more energy-efficient and reduce their energy costs. The program's attraction is that projects can be accomplished without upfront capital costs and without special Congressional appropriations to pay for the improvements. The agreement is between a federal agency and an ESCO. Projects can be initiated by the ESCO or the federal agency. Every project requires a detailed energy survey. The ESCO then is responsible for designing and constructing the project, and arranging for its financing (typically from a third party). The ESCO purchases and installs the necessary equipment, such as new energy-efficient windows, automated controls, energy-efficient lighting, and updated heating, ventilation, and air conditioning equipment. In exchange for not having to pay for the equipment, the federal agency promises to pay the company a share of the savings resulting from the energy efficiency improvements until the project is paid for. Contract terms up to 25 years are allowed. After the contract ends, all additional cost savings accrue to the federal agency.

If you can provide energy auditing services or have equipment or systems that can save energy or use renewable energy sources, business sense dictates that you make the ESCOs aware of your products and services. The opportunity is significant.

If you are a building owner or manager or consultant, it would be prudent to keep abreast of ESCO projects. Numerous case studies already exist and have been summarized on DOE's web site: More detailed information on each project can be obtained from DOE.

1 comment:

peter said...

Tony: Very interesting stuff! It would be great if your outfit would provide an place on the website to see these case studies and keep us up to date on new developments