Using ESPC to Implement Street Lighting Projects• Lighting • HVAC • EMS • Motors and VSDs...
Transcript of Using ESPC to Implement Street Lighting Projects• Lighting • HVAC • EMS • Motors and VSDs...
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Using ESPC to Implement Street Lighting Projects
Donald Gilligan, President National Association of Energy Services Companies (NAESCO)
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• The Problem • ESPC Can Help • What is ESPC? • Implementing an ESPC Project • Resources
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THE PROBLEM
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• Local facilities need improvements – 26 million street lights in US – Most are old technology
• Local governments lack budgets for capital improvements
• States need new jobs – Recovery very slow – Construction industry in depression
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ESPC CAN HELP
How does ESPC work? ESPC is a proven approach ESPC measures Public supports ESPC
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• Converts money spent on wasted energy into capital improvements in public facilities
• Turnkey service – Audit + engineering + construction + financing + commissioning
+ O&M + long-term M&V
• Delivers all EE, RE and DG/CHP technologies • Third-party financing
– Competitive market delivers low rates – Currently ≤ 4%
How Does ESPC Work?
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How Does ESPC Work?
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ESPC is a Proven Approach
• $45B in projects since 1990 • $50B savings – guaranteed and verified • 375,000 person-years of employment • $30 billion of infrastructure improvements • 450 million tons of no cost CO2 savings
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ESCO Industry Growing
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• Lighting • HVAC • EMS • Motors and VSDs • Building Envelope
Measures • Water Conservation
• Renewables – solar, wind and biomass
• Distributed Generation or CHP
• Demand Response • Water Metering • Street and Traffic Lighting • Building Sustainability
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Typical ESPC Measures
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Public Supports ESPC • Washington -- $500M program bond issue
– EE in schools – Long history of EE programs – Voted down by substantial margin
• Georgia -- $500M ESPC program – EE in state buildings – Modest history of EE programs – Approved by substantial margin
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Implementing espc projects
Determining Project Scope Selecting a Good ESCO RFQ/RFP Process Financing a Project Accounting Treatment of ESPC Projects
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Determining Project Scope • ESPC projects often comprehensive
+ Buildings + Water and wastewater plants + Street and traffic lighting
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Selecting a Good ESCO •NAESCO Accreditation •Independent Accreditation Committee
– National Laboratory – ESPC Project Owner’s Representative – Energy Expert Legal Counsel
•Rigorous Process – All project documentation – 50 Projects
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RFP/RFQ • ESPC is an alternate procurement method • Best value, not low bid • Selection based on qualifications
– Experience in similar projects – Proposed project team
• Indicative pricing is only one metric
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Financing a Project •ESPC blends available financing
– Grants – federal or state – Utility rebates – Subsidized loan funds – Bonds – Private financing
•ESCO helps educate the customer
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Accounting Treatment • Proposed new accounting rules
– Conform US to international standards – No more operating leases
• State laws usually determine debt treatment – ESPC can be exempt from limits – Need to segregate savings
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RESOURCES
National Association of Energy Service Companies (NAESCO) Energy Services Coalition (ESC) National Association of State Energy Officials (NASEO) US Department of Energy (US DOE)
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NAESCO • Members are ESCOs and
suppliers
• Members implement about 90% of US ESCO projects
• Rigorous accreditation procedure
• http://www.naesco.org/accreditation/companies.aspx
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ESC • National organization with
state chapters
• Members from ESCO industry and state/local public agencies
• Full set of best practices resources on website
• http://energyservicescoalition.org/espc/tools/index.html
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NASEO • Regional coordinators
across US
• ESPC expertise
• Advice from government agency peers
• http://www.naseo.org/members/regions/index.html
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US DOE • Support for ESPC • Major ARRA program • Sustainable approach • $ Billions of federal projects • Extensive resources on
website • http://www1.eere.energy.gov/wip/so
lutioncenter/buildings/performance_contracting.html
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