Guaranteed Energy Savings Program (GESP) Peter Berger, GESP Manager - - PowerPoint PPT Presentation

Guaranteed Energy Savings Program (GESP)

Peter Berger, GESP Manager

Guaranteed Energy Savings Program (GESP)

• Master Contract and Technical Assistance Program
• Provided by the Minnesota Department of

Commerce

• Including 11 Energy Services Companies (ESCO’s)

as Master Contract Holders

• Utilizing Energy Savings Performance Contracting

(ESPC)

• To Identify, Develop, Contract, Finance and

Implement EE/RE Projects in public facilities

2

What is Energy Savings Performance Contracting (ESPC)?

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“The use of gua uarant nteed sa saving ngs gained from the maintenance, operations and utilities budgets, as s cap apital to make e needed eeded upgr grades to your building environmental systems, that is financed over a specified period of time.” U.S.

• S. Dep

Department of Energy

Before re I Improvements After I r Improvements

Typical EE/RE Measures

• Interior and Exterior

Lighting Upgrades

• Retro Commissioning
• Aeration Upgrades –

motor’s, VFD’s, DO Sensor’s

• Boiler Upgrades – steam

to hot water, biogas

• Anaerobic Digesters
• Combined Heat and

Power

• Solar PV

4 Source: Lawrence Berkeley National Laboratory https://emp.lbl.gov/sites/all/files/lbnl-5447e_0.pdf

Guaranteed Energy Savings Program (GESP)

• Makes existing systems more efficient

– Retro-commissioning – System additions and enhancements – Operation & Maintenance improvements

• Renews facility infrastructure by performing deep

energy retrofits

– System re-design – Equipment replacement

• Assures intended results continue to be achieved

– On-going savings Measurement & Verification – Performance Guarantee

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Why Use GESP?

Pr Program Benefits ESCO CO ( (Co Contractor) Benefits Ma Master Contract V Vett tted b by A y Att ttorney y Gene neral’s Office, Dept

• Dept. o
• f Admi

min., and Dept

• Dept. o
• f Comm.

Turn-ke key Responsibility f for P Project Devel elopme pment, t, D Design a and I Impl mplemen ementa tati tion Open Book P Pric icin ing Gua uarant nteed Maximum P Price Maximu mum Mark rk-ups ps a and F Fees Sit Site-Specific RFP with l lower er pr propo posed ed f fees ees Competitive B Bidding of Trade W Work a and nd Equipmen pment w t with P Pre-qualified S Sub ubs a and nd Spec pec’s 100% 00% of S

• f Savings Cr

Credi dited t d to Owner Competitive Bidding o

• f P

Project F Financing Low Co Cost L Lease Pu Purchase Financ ncing ing Saving ings G Guarant antee req equires s savings b be e me met each y year o

• f th

the g gua uarantee An Annual Sa Savings G Guar arantee for T Term o

• f P

Proje ject Financ ncing ing Meas asurement &Verif ification G Guid idelin ines Annua nnual S Savings M Measurement & V Verification Startup & & Commissioning Guideli lines Pro Forma As a Assumption G Guid idelin ines All ll Co Costs a and S d Savings I Ide dentified d Up-front State P Provides Technic nical al, F Financ ancial al & & Contrac actual al A Assis istanc ance

6

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Key Drivers of GESP

Organizational l Goa Goals ls Facility I Issues Resou

• urce

Needs

• Reduction in Energy Use
• Reduction in Greenhouse

Gas Emissions

• Use of Renewable Energy
• Job Creation
• Regulatory Compliance
• Safety & Reliability
• Deferred Maintenance
• Energy Price Uncertainty
• Budget
• Manpower / Capacity
• Expertise

GESP is a Strategy to …

Reduce

Energy Use Operation & Maintenance Costs

Renew

Facility Infrastructure Compliance, Safety & Reliability

Achieve

GHG Emission Reduction Job Creation Use of Renewable Energy

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Budg dget Neu eutral – No Bond F d Funds ds R Required ed

GESP Simplifies Implementation

• Vetted Contracting and Procurement Process
• Pre-qualified Contractors (ESCO’s)
• Single-Source Responsibility for Project

Development, Financing, Implementation and On-going Performance Guarantee

• Technical Support provided throughout by the

Department of Commerce

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Peter Berger, LEED AP BD&C

GESP Program Manager 651-539-1850 peter.berger@state.mn.us

Lindsay Wimmer

GESP Project Manager 651-539-1771 lindsay.wimmer@state.mn.us Website: http://mn.gov/commerce/industries/energy/technical-assistance/gesp.jsp