guaranteed energy savings program

Guaranteed Energy Savings Program

Peter LindstromClean Energy Resource Teams

Limited Funds & Time

Addressing Deferred

Maintenance

Reduce Risk

Building Upgrades

Meet Sustainability

GoalsHigh

Energy Costs

Community Challenges Operational

Costs

LEEP – Local Energy Efficiency Program

BENCHMARK! IMPLEMENT!

What is an Investment Grade Energy Audit?

General Audit Investment Grade AuditUtility Bill Review Utility Bill Review

• Energy rates and cost figures for all utilities

• Historical Energy Use

Building Profile Building Profile with Inventory of all energy consuming equipment & processes• Facilities overview &

utilization• Operating hours analysis

Savings Recommendations Savings recommendations with payback periodsMeasurement &Verification Plan

LEEP: Local Energy Efficiency Program

7

• 10 Pre-qualified firms, standard selection tools & contracts• Project Design, Bidding & Implementation handled by LUG• St Paul Port Authority provides financing agreements for LEEP

participants through Energy Savings Partnership (Optional)

Opportunity Assessment

Provider Selection Investigation Financing

Program Review & Operation

Design Construction Bids

ImplementProject

Commerce Technical Assistance

Local Unit of Government

Leads

Chisago Lakes Schools

$22,500 annual energy and M&O savings

Savings from building utilityupgrades are used to pay for projects

GESP: Performance Contracting

$

Guaranteed Energy Saving Program is Budget Neutral

Existing energy,

maintenance & operation

costs

Savings Fund Improvements

Existing energy,

maintenance & operations

costs

Existing energy,

maintenance & operation

costs

Ongoing Savings

Before During After

What Kind of Projects?Projects to Consider:• Upgrading to high efficiency

boilers & chillers• Converting to ground-source

heating & cooling• Retrofitting to efficient lighting• Installing heat recovery

equipment• Redesign HVAC system• Adding solar energy systems• Increasing water conservation• Improving building envelope

Schneider Electric – Buildings Business 12

Long Payback

Cost Savings

Quick Payback

Cost Savings

BUNDLING: A comprehensive approach

Interior Lights

Variable Frequency Drives

Occupancy Sensors

Renewables

Boilers & Chillers

• State Provided Technical, Financial and Contractual Assistance

• Vetted Documents: RFP, Master Contract, Work Order Contract• Open Book Pricing & Maximum

Markups and Fees• Competitive Bidding of Trade Work

and Equipment with Pre-qualified Subcontractors

• Annual Savings Guarantee• Measurement & Verification

Guidelines• Pro Forma Guidelines• Annual M&V Report

Benefits of GESP: Renews infrastructure

Complete Process

Repurpose dollars

Less vulnerability to volatile energy prices, weather, and equipment failure

Progress in meeting your sustainability goals (GreenStep Best Practice)

Reduces Taxpayer Risk

Guarantee on energy savings through measurement and verification

Bemidji Rochester – Mayo Civic

Center Rochester – Recreation

Center Leech Lake Tribal Nation DNR Department of

AdministrationMnSCU campuses National Guard

Who has signed on so far?

• $8.1 million project – 18 year financing• $590,000 one time utility rebates• $442,000 annual energy and M&O savings

Minnesota State University -Mankato

• $2.0+ million project• $122,000 one time utility rebates• $120,000 annual energy and M&O savings

“We’re making$2 million inupgrades to buildingsand street lights without burdening our taxpayers.” - Mayor Rita Albrecht

Thank You!

Peter LindstromLocal Government Outreach Coordinator

612-625-9634plindstr@umn.edu