US awards 21 energy and water efficiency contracts
The US Department of Energy (DoE) has awarded 21 contracts to provide efficient energy and water infrastructure improvements to federal facilities.
Under an energy savings performance contract (ESPC), a private contractor will design, construct and install an energy and water savings project that meets the federal agency’s needs and provides the necessary financing, with no initial cost to the US Government.
The contractor must then guarantee the improvements will generate annual energy savings sufficient to pay for the project over the term of the contract.
The contractor will then paid over the term of the contract from the savings created.
Some of the companies to have been awarded an ESPC in this round include Schneider Electric, Lockheed Martin and EDF.
US Secretary of Energy Rick Perry said: “This programme highlights how the public and private sector partnerships can align with the administration’s objectives for increased energy efficiency and job creation without burdensome regulations.
“A key component is that these energy and water efficiency projects at federal facilities pay for themselves and the hope is that all federal agencies will utilise this financing method to the fullest extent.”