The contracts were awarded as energy savings performance contracts (ESCOs) under the department’s indefinite delivery indefinite quantity (IDIQ) programme.
Under ESCOS, private contractors use their capital to upgrade water and energy infrastructure in federal facilities. The contractors are paid from energy and water savings resulting from the upgrades.
The awarded projects will be deployed over a period of five years.
Companies which the department of energy will be working with under the announced round include Consolidated Edison Solutions, EDF Renewable Energy, Siemens Government Technologies, Schneider Electric and Honeywell.
Rick Perry, the secretary of energy, said: “This program 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.”
The US DoE says it awards ESPCs of about $2 billion every three years.
Energy savings performance contracts
The news follows Schneider Electric signing two energy savings performance contracts with the US cities of Maryville and Shelbina in Missouri in late April.
In a press statement, Schneider Electric claims that the contracts will help the cities’ utility departments improve their revenue collections and services as well as to help consumers improve their water, gas and energy efficiency.
In the city of Maryville, the solutions provider will replace existing 4,250 analogue water meters with advanced water meters to help the city’s public works department to accurately bill its customers.
The smart water meters will enable the city reduce its operational costs by eliminating manual water meter readings.
The city will be provided with water leak detection technology for quick identification of water leaks within its water distribution network until the rollout of the smart water meters is completed. Read more…
Image credit: 123rf.