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)? Before re I Improvements After I r Improvements “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 3
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 Source: Lawrence Berkeley National Laboratory https://emp.lbl.gov/sites/all/files/lbnl-5447e_0.pdf 4
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 5
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 Turn-ke key Responsibility f for P Project Office, Dept Dept. o of Admi min., and Dept Dept. o of Comm. 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 Site-Specific RFP with l Sit lower er pr propo posed ed f fees ees Competitive B Bidding of Trade W Work a and nd 100% 00% of S of Savings Cr Credi dited t d to Owner Equipmen pment w t with P Pre-qualified S Sub ubs a and nd Spec pec’s Competitive Bidding o of 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 An Annual Sa Savings G Guar arantee for T Term o of P Proje ject each y year o of th the g gua uarantee 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 & & 6 Contrac actual al A Assis istanc ance
Key Drivers of GESP • Reduction in Energy Use Organizational l • Reduction in Greenhouse Gas Emissions Goa Goals ls • Use of Renewable Energy • Job Creation • Regulatory Compliance Facility I Issues • Safety & Reliability • Deferred Maintenance • Energy Price Uncertainty Resou ource • Budget • Manpower / Capacity Needs • Expertise 7
GESP is a Strategy to … Reduce Renew Achieve GHG Emission Facility Reduction Energy Use Infrastructure Job Creation Operation & Compliance, Use of Maintenance Safety & Renewable Costs Reliability Energy Budg dget Neu eutral – No Bond F d Funds ds R Required ed 8
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 9
Peter Berger, LEED AP BD&C Lindsay Wimmer GESP Program Manager GESP Project Manager 651-539-1850 651-539-1771 peter.berger@state.mn.us lindsay.wimmer@state.mn.us Website: http://mn.gov/commerce/industries/energy/technical-assistance/gesp.jsp
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