Energy Performance Contracting is a complex process, and this session, presented by ESCO Johnson Controls, helped identify the key points of an energy audit by citing examples of their work with the Virginia Department of Corrections. Johnson Controls emphasized the benefits of making comprehensive changes to an institution instead of piece-mealing the various solutions.
The largest potential savings lie in the areas of Lighting, Space Heating and Space Cooling. In addition, water costs are on the rise - specifically sewer costs. By retrofitting older water systems and insulating pipes, institutions save money on energy as well as water usage. ESCOs provide a guarantee of energy savings making sure that the investment has a long-term ROI.
One of the more interesting examples of reducing water usage was an electronic shut off system so that inmates cannot abuse the system by multiple and continuous flushes. By installing this system, the toilet will shut down and eliminate the ability for the inmate to flush if the system detects a certain number of flushes in a specified time frame saving the institution thousands of gallons per inmate.
Creating a comprehensive approach, Johnson Controls has also created a "HVAC Learning Lab" so that inmates can be trained on the maintenance of the new systems. The most important thing to note about the Learning Lab is that it was built and supported solely through the savings created by installing the energy saving systems.
The bottom line of savings is documented over time by a variety of methodologies including utility bill comparison. The ESCO is responsible for ensuring and guaranteeing the energy savings.
Sound bites:
- Energy Performance Contracting will be a $5 Billion industry in 2011
- Savings must be sufficient to cover the costs
- Executive level buy in is essential - in VA, the governor issued orders that ensured that any energy savings would be returned to the institution and not back to the general fund.
- Energy Performance Contracting is about "Risk Management"
- Including any training costs in the estimate is essential
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