ESPC Process
What is Energy Savings Performance Contracting?
Energy Savings Performance Contracting is a method of implementing improvements
to existing buildings, while using resource savings to pay for part or all of
the improvements. Resource savings can be savings on electricity, gas, water,
wastewater, or solid waste disposal. Performance contracting allows for these
resource savings and facility improvements to be done in an environment that maximizes
the financial benefits of the improvements. Quantum is focused solely on Performance
Contracting as a method to best serve its clients.
↑ top of page
What is an Energy Services Company (ESCo)?
An ESCo is a company that implements performance contracting projects. They perform
the engineering analyses of existing systems (lighting, mechanical, controls, etc.),
provide construction services, and can provide financing for the improvements.
They typically guarantee both the cost of the measures, and the resource savings.
↑ top of page
How the Process Works
Clients typically select an ESCo based on qualifications, similar to the selection
process used for architects or engineers. Once a client selects an ESCo, the client
directs the ESCo to perform a resource conservation audit of one or more of its
facilities. The ESCo will generate a list of facility improvements that save resources,
and the client will choose which measures to implement. The facility engineer
is typically an integral part of the decision-making team throughout this process.
The ESCo will present a proposal for guaranteed resource savings, project costs,
and project financing. Most ESCo’s can arrange several sources of financing,
or the Owner can directly fund part or all of the project.
Upon approval by the client of the ESCo’s proposal, the ESCo moves forward
with design and construction of the project. Ideally, and depending upon the ESCo
involved, the project will be competitively bid to subcontractors, and the entire
process will be a cooperative effort between the client and the ESCo. The ESCo
takes full responsibility for the project – from the audit phase through
design, construction, and commissioning. Again, the ESCo works very closely with
the facility engineer to assure that the project meets the clients’ needs,
and to minimize the impact to the occupants.
After the improvements are built, the ESCo monitors and verifies proper operation
periodically to assure that the resource savings are being achieved. If the project
was financed through a loan, the loan payments are made with the proceeds from
the resource savings (which are reflected in lower utility bills).
↑ top of page
The Benefits of this Process
- Facility improvements with reduced capital outlay.
- Owner involvement and input throughout the engineering and construction process.
- Guaranteed costs and resource savings.
- Guaranteed performance.
↑ top of page
|
Sustainable Energy
Quantum is fast becoming a leader in sustainable energy development in the Northwest. We are currently in the design and development phase for four photovoltaic solar energy projects, and are also involved in implementing compliance with the American Colleges & Universities Presidents Climate Commitment on one large college campus.
|
