ESPC Q&A: ESPC Proposal Content Submitted by an ESCO

clock August 25, 2011 03:05 | commentComments (0)
Question:  What should be included in the energy service company (ESCO)’s energy savings performance contract (ESPC) proposal? Answer:  The following major components should be included in a guaranteed savings ESPC proposal, presented by an ESCO to the facility owner: An executive summary including a brief overview of the proposal content.  This includes Energy Conservation Measures (ECMs), first year guaranteed energy savings, total guaranteed energy savings for the... [More]

Q&A: Performance & Energy Savings Disputes

clock August 18, 2011 05:57 | commentComments (0)
Question: How common are disputes involving performance and energy savings on Energy Savings Performance Contract (ESPC) projects and how can discrepancies be resolved? Answer: Fifteen years ago, Measurement and Verification (M&V) procedures were not very well established in the Energy Efficiency (EE) market. However, with the development of the International Performance Measurement and Verification Protocol (IPMVP)—first issued in 1996 and continually updated since—disputes... [More]

Where Do We Go from Here? (More Importantly, How Do We Pay for It?)

clock July 28, 2011 05:48 | commentComments (0)
Recently, much of our work on the financial technical assistance team has been focused on the question of how to sustain programs after ARRA funding is exhausted.  Some units of government have developed financing programs such as loan funds that require ongoing management. Others hope to continue making energy efficiency (EE) upgrades on government facilities. Still others are looking for ways to continue staffing their sustainability offices. While their goals for the future may differ,... [More]

Investment-grade Audits: Preliminary Screening Checklist

clock July 20, 2011 05:01 | commentComments (0)
A detailed or investment-grade energy audit (IGA) should include realistic assumptions. When an IGA is performed properly, its results should be thorough, and provide a clear guide for implementing energy conservation measures and a strategy for using energy and reducing costs in a facility. A previous post about audit deficiencies described some circumstances that can lead to low-quality IGAs. The post also detailed how these deficiencies can result in unrealistic savings analysis, duplicate... [More]

Investment-grade Audit Deficiencies

clock July 18, 2011 11:24 | commentComments (0)
While a previous post explained the benefits of performing an investment-grade audit (IGA) and what all it should entail, it is important to remember that not all IGAs are created equal. This post and an upcoming post will detail some of the deficiencies in IGA reports and how to prevent these deficiencies from occurring. Deficient audits can create major issues in reporting, including: Inconsistent energy costs, demand costs, and operating hours of various areas within the facilities&mdas... [More]