U.S. Awards Energy-Savings Contracts

Published May 4, 2010

The U.S. Department of Energy has announced awards of contracts totaling $52.5 million for energy-saving projects, including the installation of renewable-energy systems, at federal sites in nine states.

Called Energy Savings Performance Contracts, the agreements are designed to be paid for over time through guaranteed savings on energy.

The agreements call for the contractor to design, finance and build the projects, and to receive payments from the government from money made available by the energy savings that the contractor guarantees will be sufficient to cover the costs.

The savings are expected to continue after the projects are paid off by the government. In 2010, the government has begun 36 projects with cumulate payments over time to total about $1 billion and savings guaranteed to total about $1.1 billion. Another 35 projects are already in development.

 In addition to renewable-energy systems such as solar photovoltaic installations, the projects include improvements to heating, ventilating and air-conditioning systems; upgrades to lighting, boilers and chillers, and water and sewer systems; installation of building automation systems; and appliance energy-use reduction.

The agencies involved, award amounts and contractors are: General Services Administration Region 7, Texas and Oklahoma, $9.8 million, Honeywell; General Services Administration Region 7, Texas, $17.9 million, Schneider Electric; Bureau of Land Management, Alaska, Idaho, Nevada, California, New Mexico, Utah, $17.6 million, Johnson Controls; and National Wildlife Health Center, Wisconsin, $7.2 million, Johnson Controls.