SELECTING PROJECT SITE(S)

The Government Unit, with assistance from SOEP, must determine if the Project Site has the potential for an ESPC Project with energy and water-saving opportunities of substantial scope which will attract an ESCO. There are a number of technical factors to consider when selecting a suitable Project Site for an ESPC Project. In general, the facility should have high annual energy and water use coupled with sufficient energy savings opportunities to generate the necessary cash flow to amortize all project cost over the Contract Term, fulfill the goal set forth in Act 19-2012 and Act 57-2014 and generate interest among ESCOs. While every situation is different, the typical factors that make a performance contract project both viable and successful include: Desire to improve energy efficiency through comprehensive solutions Aging buildings or equipment (lighting, controls, heating and cooling systems) Stable facility use and occupancy High annual utility costs Consistent energy use and occupancy Limited capital budget to fund energy improvements up front Too many demands on maintenance staff Recurring maintenance problems or high maintenance costs Comfort complaints Some ESCOs are willing to implement projects for smaller facilities not necessarily satisfying all factors but they make those decisions on a case-by-case basis. In some cases, it makes economic sense to combine several facilities into a single project offering. Multiple building projects with excessive energy and water costs are usually more attractive to ESCOs and allows the Government Unit to finance and obtain greater improvements through a single procurement process.