Energy Performance Contracting For The 21st Century

 

It has become apparent that the nation must move toward a more economically sustainable path of energy consumption. Unstable energy costs and the escalating need to reduce toxic emissions means that, like it or not, we must develop a long-term relationship with energy conservation. While most of us believe that conservation with its resultant cost reductions is a laudable endeavor, the truth is that accomplishing this goal can be difficult to attain. Not only is there a lack of understanding in some sectors regarding energy technologies and their overall effect on industrial energy use, but equally important is the question of how owners, property managers and companies can finance significant conservation efforts in this economic downturn.

At first glance you may feel that you are facing unyielding limitations that prevent you from envisioning innovative solutions to energy management. Rest assured that many owners, managers and companies need the support of energy experts capable of assessing energy-efficient industrial technologies and analyzing what is needed to further the development of their specific energy programs. These knowledgeable individuals know how to reduce energy costs and consumption by merging energy efficiency, economics and environmental performance to improve current energy usage.

Energy audits, performance contracting and cutting edge energy efficiency technology all are essential for meeting this challenge. In conjunction with a turnkey approach and financing methods that pay for energy conservation measures, it is possible to initiate energy efficiency programs that have a high likelihood of success, defined as generating a high energy savings.

In order to develop a successful full service turnkey program for utility conservation, several companies have joined together in order to provide a comprehensive package of services. Collectively the range and depth of our experience relative to the field of utility conservation includes:

  • Design and installation of new systems
  • Performance contracting
  • Energy audits
  • Product engineering
  • Construction management and subcontract management
  • Software development
  • Metering services
  • Monitoring services
  • Project maintenance
  • Program administration
  • Energy procurement services
  • Energy education services
We offer any or all of these services, depending on the specific financial arrangements decided upon by you. Financial arrangements range from paying upfront for the energy conservation measures to developing a performance contract that allows the owner to pay for the improvements from the savings generated by the newly implemented conservation measures. This means that there is no cost to your bottom line.

We believe that no other entity possesses the range of skills and staffing resources to be able to offer the all-inclusive package of services listed above. Below please find a description as to how several primary service items will be provided, as well as an explanation of the technology that will help you achieve your desired energy savings.

The six services that we will utilize to begin searching every avenue for energy cost reductions are audit, engineering, financing or performance contracting, installation, maintenance and supply.

What is Performance Contracting?

Performance contracting is a vehicle that allows owners to create energy projects for their facilities without upfront capital costs. All costs including principle, interest, management/administrative and ongoing monitoring costs are paid for out of guaranteed operational and energy savings. As the turnkey contractor we will audit, engineer, finance, construct, install and maintain the new systems to ensure that you receive the projected energy cost savings through the implementation of these energy conservation measures. Thus, initially there are no new costs to your budget. We will guarantee that the energy program we design will generate savings sufficient to pay for the project over the term of the contract. You will pay off the entire debt of the program through the consumption cost savings.

The Energy Audit

In order to gain a detailed understanding of building operation, maintenance routines, operating schedules and building needs, we will conduct an energy audit. A comprehensive, quality study is crucial for creating the foundation required for a successful project. Accurate technical assessments of the site(s) begin with comprehensive data collection.

Energy audits allow us to evaluate all potential energy conservation measures and provide calculations for savings. We will establish the baseline for energy usage and evaluate alternative parameters for current and future operating conditions. We take a holistic look at the interaction of the components of the total building, including the mechanical, heating/hot water, and electrical systems. Detailed data collection and analysis is a diagnostic process that creates a building snapshot of the current model of energy use.

In our energy audit we will:

  • analyze utility usage,
  • complete detailed on-site survey in order to develop a complete list of all feasible conservation measures,
  • identify potential technologies,
  • provide common information on energy efficiency technologies,
  • offer new insights into technology development for energy savings,
  • calculate the implementation and operational costs associated with each measure, and
  • explore the opportunity for you to utilize performance based contracting to reduce costs and improve your energy environment.
We will analyze the consumption data and patterns and based on our findings we will propose a plan designed to improve energy efficiency by generating maximum long-term utility and operational savings through performance contracting. Recommended technology will be made on the basis of energy efficiency, economics and environmental performance, with non-energy benefits being analyzed as well. Non-energy benefits are ecological and environmental in nature and include such things as diminished environmental impact, increased worker safety, and reduced capital costs (repair costs for old equipment often can be avoided).

The cost of the initial audit is free and the cost of the investment grade audit will be rolled into the financing of the performance contract.

Engineering

Because we are multi-faceted we have the capacity to design and engineer the systems we recommend. One of our primary partners, Intech 21, designs, develops and manufactures technologies, products and systems for a diverse range of control and monitoring applications.

Intech 21’s development efforts extend into web-enabled, local and remote server software systems that allow monitoring and control of facilities from anywhere at any time. Currently Intech 21 has successfully installed equipment in tens of thousands of units with a demonstrated 20% to 40% reduction in heating and electrical savings. Our relationship with Intech 21 allows us to guarantee the savings necessary to fund this project.

Heating and Hot Water Systems

There are two primary difficulties an owner can experience when it comes to energy costs. One is an outdated, outmoded, inefficient heating system, and the other is an inability to control the heat in each apartment (or building area), especially if that space is unoccupied. Intech 21 has developed an integrated building system (IBS) with the capacity to optimize heating and hot water temperatures based on the inside rather than the outdoor temperature. Thus, the owner is assured that the temperature s/he wants is the temperature being provided. No more over/under heating

The integrated building system is real time information when and where you need it. The system collects data through a wireless signal sent to a centralized computer that is set up to control the boiler plant zone valves. These data are available through the Internet and can be sent to any location, including your home. The IBS has been proven to increase facility performance and staff effectiveness through cost reduction, quality improvements, control capabilities and real time monitoring. Intech 21 has seen savings of approximately 25% from this system.

In short, the IBS model of building operations distributes a more uniform temperature throughout buildings and apartments, provides an early warning to potential building failures, and monitors usage patterns, and it can be tailored to provide you with the information you need, when and where you need it.

Electrical Systems

Many landlords and private building owners use master-metering for electricity, thereby making the cost of electricity a part of the tenant’s rent. By using wireless technology, Intech 21 is able to individually meter each apartment, thus ensuring that each tenant pays for what s/he uses. This means that property managers and/or building owners are not required to pay for a tenant’s over consumption.

Such impartiality is simple to accomplish. Just as heating data can be sent to any location, a meter is installed at a tenant’s electrical box and electrical data can be also sent wirelessly through the Internet to any location deemed appropriate, including directly to a billing department. The IBS frees you from having to pay for careless consumption.

Installation, Maintenance and Supply

Installation. The installation of state-of-the-art computerized, energy efficiency equipment is a major part of our guaranteed energy program. Our commitment to quality will be incorporated into the implementation plan which we will jointly develop with Intech 21.

Maintenance. We recognize that quality follow-up service is as important as quality project implementation. The goal of maintenance is to maintain the operating integrity of your systems on a proactive rather than a reactive basis. Maintenance routines must be completed at regular intervals, and we are committed to providing the labor, materials and expertise to furnish the regular maintenance routines on all new equipment installed as part of this project. Effective support services, handled on a personal basis, are one of the primary benefits we offer, and, if necessary, we can make special arrangements with you in order to avoid labor disputes.

Supply. We will further reduce your energy costs through the bulk purchase of either gas or oil, depending on your systems. We currently purchase gas and oil for other clients and would use our purchasing power to increase your rate savings.

As you can see from the outline above, our company is uniquely positioned in the arena of energy efficiency. It is a safe assumption that given the current energy concerns and considerations it is just a matter of time before energy conservation initiatives are legislated. Our commitment is to meet or exceed the projected energy savings as we work together to develop the project implementation and monitoring protocol roadmap.

We are offering a type of integrated energy efficiency technology that would allow you to continuously monitor and update information regarding your heating/hot water systems, as well as the consumption of electricity on an apartment by apartment basis. We would be responsible for the energy audit, energy calculations, design, engineering, installation, maintenance and supply of the performance contracting project.

The climate in which we all do business is rapidly evolving. The businesses who weather the changes will be those who anticipate the coming risks and opportunities and adapt now to be ready. You can be out in front in the challenge of moving toward energy technology and we are the company to help you do it. The key steps involve reviewing and revising your technology plan setting your own energy efficiency improvements to yield profitable results. As a full service energy company we will help you align available technology with your business objectives so that you are better prepared for staying ahead of the curve. Performance contracting can all but eliminate the cost of commercial energy technology installations to your bottom line. This is the time to make your business needs related to energy efficiency a reality, and it starts with us.


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