Greater Southwest Using ESPC for Energy Efficiency
Energy Savings Performance Contracts (ESPC) promote the use of renewable energy technologies, acquire energy and water conservation services, and reduce energy and water consumption and/or associated utility costs. The contractor guarantees the amount of energy cost savings and the cost of the work is covered by those savings unless funded by ARRA. If the work does not save the amount guaranteed by the contractor, the contractor pays GSA the difference.
In Region 7, the $68 million contract authorizes work in 75 buildings regionwide. This work is expected to save $4.8 million in energy costs in the first 5 years after install. The work includes various energy efficiency items such as photovoltaic panels, system upgrades and even a wind turbine along the border.