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Energy Savings Performance Contracts (Part III): Hire an Owner’s Rep. To Manage ESCO Providers

 

(If you missed the Part II blog post in this series about ESPCs and ESCOs, CLICK HERE!)

Why You Should Hire An Independent ESCO Owner’s Representative

ESCO Owners RepOrganizations should consider hiring an independent owner’s representative to manage an Energy Services Company (ESCO) when implementing an Energy Savings Performance Contract (ESPC) or an Energy Services Agreement (ESA), particularly when implementing complex, multi-year, energy conservation projects. Acting as owner’s representative, an independent energy consulting firm will objectively evaluate the ESCO’s Investment Grade Audit (IGA), validate the projected energy savings and costs, and oversee the implementation and ongoing Measurement and Verification (M&V) of the proposed energy conservation measures (ECMs).

Because the IGA serves as a blueprint for the project, any errors or miscalculations within this document can significantly impact the project’s financial and economic viability. In addition, an independent energy consulting firm will be able to guide the process and act on the owner’s behalf, particularly for projects complicated or broad in scope. Hiring an owner’s representative has proven to be particularly advantageous for the one of the largest cities in Massachusetts, in supporting its multi-year, city-wide energy management initiative to implement several energy efficiency and renewable energy projects.

(Learn more about ESCOs, ESPCs, ESAs, and IGAs within Part I and Part II of this blog series!)

One of the Largest Cities in Massachusetts Launches a City-Wide Energy Management Initiative

ESCO Owners RepNestled within a harbor along the south coast region of Massachusetts, one of the largest cities in the Commonwealth sought a cost effective and efficient strategy to reduce their attributable carbon footprint, operating costs, and energy costs associated with city-owned facilities and infrastructure. By leveraging SourceOne as owner’s representative, the city selected an ESCO firm and is negotiating a performance-based, multi-year Energy Management Services Project (EMSP), incorporating guaranteed energy savings, energy efficiency and cost savings projects at 40+ sites.

During the next phase of the project, SourceOne will continue to represent the city, including reviewing the ESCO’s Investment Grade Audits for the selected facilities, overseeing implementation of ECMs, verifying commissioning of newly installed equipment, and ensuring the accuracy of M&V analysis post-implementation. Specific projects include fuel conversion from oil to natural gas at several buildings, streetlight upgrades to LED technology and other renewable energy technologies. The efficiency projects, when completed, will improve the City’s habitability, infrastructure, and reduce operating and maintenance costs.

Maximize ROI for Capital Projects with an ESCO Owner’s Representative

ESCO Owners RepBusinesses, organizations, and municipalities should engage an independent ESCO owner’s representative to advance multiple energy conservation and capital improvement projects. An energy management expert will confirm and validate the baseline energy use, economic analysis, proposed project scope and costs, and guaranteed savings for the project, in addition to facilitating implementation and verification of ongoing M&V. Engaging an independent energy consulting firm, skilled in energy master planning, engineering, and ESCO procurement, enables streamlined and cost-effective implementation for complex, multi-year energy conservation projects, while ensuring that energy efficiency, water conservation, and emissions reduction goals are met.

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Fund critical infrastructure improvements with Energy Savings Performance Contracts (ESPC)

ACEEE Ranks Boston As the Most Energy Efficient US City

 

About the 2013 City Energy Efficiency Scorecard

ACEEE infographicOn September 17, 2013, the American Council for an Energy-Efficient Economy (ACEEE) released a new report titled 2013 City Energy Efficiency Scorecard. ACEEE’s new report ranks America’s 34 largest cities on their efforts to save energy and costs in five key areas. These categories cover local government operations, community-wide initiatives, buildings policies, energy and water utilities, and public benefits programs and transportation policies.

Boston Scores High In Five Key Areas

With its Renew Boston initiative, strict building energy codes, new energy benchmarking ordinance, transportation and other community-wide programs, it is no surprise that Boston was ranked the most energy-efficient US city, scoring 76.75 points out of a possible 100. Portland, Oregon, New York City, San Francisco, Seattle and Austin came in just behind Boston.

Here is a look at Boston’s scores in five key areas:

  • Local Government Operations: 11/15
  • Community-wide Initiatives: 9.5/10
  • Buildings Policies: 21.5/29
  • Energy and Water Utilities and Public Benefits Programs: 15.75/18
  • Transportation Policies: 19/28

Energy Audits Quantify Energy Use and Drive Efficiencies

Energy efficiency encompasses a wide range of cost-saving energy conservation and planning initiatives to minimize energy usage, maximize savings and reduce carbon footprint. In order to address inefficiencies, energy usage must first be quantified. This is often accomplished via an energy audit by a trained engineer. The objective of an energy audit is first to quantify and analyze usage and then to identify applicable Energy Conservation Measures (ECMs) to increase energy efficiency and reduce Greenhouse Gas (GHG) emissions. Energy audits typically adhere to the parameters established by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Procedures for Commercial Building Energy Audits and, depending on the level, encompass varying degrees of detail (historical energy data, existing conditions assessment, projected energy savings, project cost estimate, payback period, etc.).

Energy Conservation Measures – The Path to Savings and Sustainability

Energy Audit

Energy Conservation Measures can incorporate a wide range of infrastructure and operational improvements, including; recommendations for building envelope (replacing windows, installing insulation, controlling air leakage, etc.), heating and cooling and improvements (building automation controls, heat pumps, installing thermostats, etc.), lighting improvements, implementing efficient and/or renewable energy technologies (solar power, wind power, geothermal, etc.), and adjusting building operations.

As a national energy management consulting firm, SourceOne has helped several public agencies and private companies on a wide range of energy efficiency initiatives to achieve significant economic and environmental benefits. Relevant examples include the Massachusetts Water Resources Authority (MWRA), the City of New Bedford, and the Division of Capital Asset Management and Maintenance (DCAMM), to name a few. The MWRA, for example, has benefitted greatly from the implementation of a 1.2 MW Back-Pressure Steam Turbine Generator at its Boston Harbor Deer Island Waste Water Treatment Plant. As the Owner’s Representative, SourceOne managed the project from conceptual design to construction. Since completion of the upgrades in 2011, the plant is offsetting approximately $550,000 in annual energy costs and avoids the release of 3,591 Metric Tons of Carbon Dioxide (CO2) Emissions.

Energy Efficiency Supports Local Economic and Community Development

energy auditThe clean energy industry continues to thrive in Boston and Massachusetts, benefiting the environment, economy and local communities. The executive summary of the 2013 City Energy Efficiency Scorecard report highlights the underutilized value of energy efficiency in improving and addressing a myriad of economic, environmental, infrastructure, and health concerns:

“Energy efficiency may be the cheapest, most abundant, and most underutilized resource for local economic and community development. Considerable evidence documents that investments in energy efficiency can improve community self-reliance and resilience, save money for households, businesses, anchor institutions, and local governments; create local jobs; extend the life of and reduce the costs and risks of critical infrastructure investments; catalyze local economic reinvestment; improve the livability and local asset value of the built environment; and protect human health and the natural environment through reducing emissions of criteria pollutants and greenhouse gases.”

After reading the opening statement of the report you begin to ask yourself “Why wouldn’t cities want to invest in energy efficiency?” Saving money, creating jobs, and improving community self-reliance are powerful incentives driving energy efficiency. 

What’s Next for Energy Efficiency?

While many improvements have been made in recent years by cities and towns, energy efficiency is still an underutilized resource. Every town and city in the US should leverage and implement energy reduction opportunities to both achieve energy savings and meet environmental goals. The 2013 City Energy Efficiency Scorecard serves as an important tool highlighting best practices and encouraging and inspiring cities to become more energy efficient.

Electrical System Peak Demand Summary

 

Absent the possibility of another extreme heat wave in August, it looks as though the electrical systems in New England, New York, and the Mid-Atlantic (PJM) reached their annual peak demands during the week of July 14 – July 19. An unrelenting heat wave, with temperatures at times exceeding 100 degrees Fahrenheit, contributed to pushing up demand further and further as the week progressed. Because many Regional Transmission Organization’ s (RTO) allocate capacity and other demand-based charges to customers based on their metered consumption during instantaneous peak demand periods, SourceOne notified its customers of possible peak-day events at various points throughout the week. Depending on the operating rules of the local utility and RTO, capacity and other demand-based charges often range from 10%-30% of a customer’s total electricity cost. Curtailment of usage during peak demand periods can help lower a customer’s capacity obligation in the following year, ultimately decreasing that customer’s electricity cost for the entire year. Customers can lower their capacity obligation by implementing demand side management strategies and other traditional energy conservation measures such as replacing inefficient lighting and motors, to more dynamic methods such as load curtailment, load shifting or plant shutdown.

New England ISO

According to data published New England ISO, the regional grid operator, a peak of 27,377 MW was established on Friday July 19th between the hours of 4PM and 5PM, a day in which real-time locational marginal prices exceeded $400/MWh during 7 hours. The all-time New England system peak of 28,130 MW occurred on August 2nd between the hours of 2PM and 3PM.

NE ISO Top Peak Days

Mid-Atlantic (PJM Interconnect)

PJM assigns capacity costs based on the average of the top five system peak days. At least a few of these days are likely to be pulled from the 3rd week of July. The PJM peak of 158,156 MW occurred between the hours of 4PM and 5PM on Thursday July 18th. While this is technically an all-time high for PJM, the territory has also grown in years so comparisons against historical data should be taken with a grain of salt.

PJM Top Peak Days

New York Independent System Operator (NYISO)

The New York Independent System Operator reached a peak of 33,956 MW between the hours of 5PM and 6PM on Friday July 19, narrowly setting a new record for the region. The previous record peak of 33,939 MW was set on August 2, 2006.

NYISO Top Peak Days

Madison energy panel applies for grant to cut costs in 6 towns

 

MADISON — The local energy committee is aiming to shed some light on regional energy savings.

SourceOne Energy Consultants | Connecticut Regional Energy CommissionMadison’s energy committee told the Board of Selectmen recently that it is applying for a grant that could result in saving thousands of dollars per year in Madison and the five other towns involved in a regional energy savings effort by converting some town light fixtures to LED lighting.

The committee is in the process of applying for a $160,000 grant, funds that are remaining from the American Recovery Reinvestment Act. The grant would not be used for street lights, but other municipal light fixtures at town facilities and schools.

If the grant is approved, Madison, Guilford, Branford, Westbrook, Killingworth and Durham would save money because the continuous energy costs would be less, the bulbs have a much longer lifespan and pressure-based sensors could be installed to save energy further by allowing the lights to turn off when no one is on the property.

“These would be on instant-on so they could be used with a sensor system like the one that exists at (Madison’s) high school, where the sensors are under the pavement,” said local energy committee Chairman Woodie Weiss. He added that the pressure system isn’t currently used because it isn’t compatible with the fixtures.

Before the grant even became available, the idea to change town lighting regionally was discussed among the six towns after SourceOne, a Boston-based energy consulting firm working with the towns, suggested it as a cost-saving measure.

The LED project is just one of more than 100 energy conservation measures that SourceOne has identified over the past year and a half. If all of the measures were implemented, more than 10 percent of the six towns’ total energy consumption cost could be saved per year — more than the initial goal of 5 percent savings.

“The (LED project) savings are huge,” said Weiss. “Frankly, this is a project we would have considered without a grant.”

The project would save all six towns about $100,000 annually, with Madison netting about $22,000 in savings.

The grant would be distributed among the towns proportionately to the amount of town lighting they have, according to energy committee member Bill Gladstone.

He added that there would be some cost to the town because the intent is to apply for funds for fixtures, not installation, but Facilities Director Bill McMinn told him the installation costs wouldn’t burden his budget.

“I think it’s a great idea anytime we can use LEDs,” said First Selectman Fillmore McPherson after Monday’s meeting. “They are probably the way to the future in lighting, and this is a way for us to be on the forefront.”

Gladstone said there is no timeline for the project, but if they receive the grant, the money has to be spent by June 30.

“We may start the process even before we are sure we are getting the grant because if we don’t start, we won’t be finished on time,” he said. “Also, if we get the grant, it will be a demonstration and model of another regional effort that might prompt us to pursue other regional opportunities as they come up.”

Call Alexandra Sanders at 203-789-5714. Follow her on Twitter @asanders88. To receive breaking news first, text the word NHNEWS to 22700. *Msg+data rates may apply. Text HELP for help. Text STOP to cancel.

Click here to read this article on the New Haven Register website.

 

Read more about the Connecticut Regional Energy Commission:

Six Shoreline Towns Team Up to Share Energy Savings
Six CT Towns Unite To Conserve Energy

 

Town of Hempstead Completes Major Construction on 100 kW Wind Turbine

 

SourceOne Inc | Energy Consulting | Town of Hempstead Wind TurbineThe Town of Hempstead in New York received over $4.5M in federal funding for energy projects under the Energy Efficiency and Conservation Block Grant (EECBG) program. SourceOne has been working with the Town as project manager and grant administrator for over 2 years. The Town is implementing a variety of energy projects that include wind, solar, ground-source heat pump systems, building energy efficiency, vehicle fleet improvements, an Energy and Greenhouse Gas database, and  public outreach efforts. 

During the week of December 5th, the Town’s contractor completed major construction and vertical assembly of its 100 kW Northern Power 100 wind turbine at the Town’s Hydrogen station where pressurized Hydrogen is produced and stored for use in a fleet of fuel cell vehicles maintained by the Town. Construction began in earnest in early November with the installation of the turbine foundation, which consisted of a 16 ft mono-pile of reinforced concrete mounted below ground in a corrugated metal pipe. After the main concrete pour and successful break tests after a 28-day curing period, the wind turbine was delivered to the site in sections and despite some inclement weather, the unit was assembled over the course of three days. When the project is commissioned and interconnected, the wind turbine will provide more than 100% of the power necessary to run the Town’s Hydrogen fueling station and even sell some power back to the grid, resulting in an operating vehicle fleet powered by the wind.

The Town is looking forward to finishing construction on its next round of infrastructure projects, including solar carports and a Ground-Source Heat Pump system for the Department of Conservation and Waterways headquarters.

Energy conservation measures will save an estimated $3M annually

 

Working with SourceOne, recommended improvements and Energy Conservation Measures (ECMs) for NYPA customers, when implemented, are estimated to yield over $3M in annual energy bill savings.

SourceOne Inc | Energy Consulting | Grand Central StationBUSINESS CHALLENGE
The New York Power Authority (NYPA) sought to obtain Independent Contractor (IC) services to implement energy efficiency projects at the facilities of NYPA electricity customers in New York City and Westchester County. NYPA is the largest state-public power organization in the United States, operating 17 generating facilities and more than 1,400 circuit-miles of transmission lines.

This initiative supported NYPA's energy efficiency work to help achieve New York State’s ambitious "45 by 15" initiative to both reduce electricity use by 15 percent below 2015 forecasts, and increase the proportion of renewable generation to 30 percent of electricity demand by that year.

SourceOne Inc | Energy Consulting | The Bronx Zoo

SOURCEONE SOLUTION
Under a multi-year contract, SourceOne has conducted energy audits for NYPA customers that ranged from large public institutions to small facilities, including Grand Central Terminal, The Metropolitan Museum of Art, NY Public Library, The Bronx Zoo and 17 others.

Through these audits, SourceOne has provided recommendations and has been responsible for the designing of energy-efficiency projects, putting them out to bid, and reviewing and selecting bidders. This has been done in collaboration with the Power Authority and the NYPA customers whose facilities are benefiting from the energy audits.

SourceOne Inc | Energy Consulting |The New York Public Library

Recommended improvements have included, steam system repairs, chiller replacements, air handler commissioning, lighting upgrades, energy management and metering improvements and other ECMs that, when implemented, are estimated to yield over $3M in annual energy bill savings.

RESULTS
A leader in promoting energy efficiency, developing alternative energy sources and advancing clean transportation initiatives, NYPA's award-winning energy efficiency programs have contributed to helping make New York State a leader in energy savings. NYPA has undertaken energy efficiency and clean energy projects at more than 3,900  public facilities Statewide, saving New York taxpayers over $134 million a year and avoiding nearly 820,000 tons of greenhouse gases annually, which translates into the equivalent of avoiding the use of more than 2.5 million barrels of oil a year. 


 

SourceOne, Owners Representative, manages implementation of two solar trackers

 

TOH Solar panel smSourceOne, Owners Representative for the Town of Hempstead's federal energy grant projects, oversaw the implementation of two solar trackers for the Town, which has the largest township in the USA. The trackers continually adjust themselves and pivot throughout the day to directly face the sun in order to maximize the energy derived from the closest star to our earth. This latest renewable energy initiative is now in full operation at the town's green energy park located in Point Lookout. The unique looking panels, which rest atop steel stanchions, increase energy output by up to 50% over conventional stationary photovoltaic panels. Additionally, the panels stand among a host of other green energy projects such as geothermal technology, wind power and hydrogen fuel generation equipment at the town's alternate energy park.

SourceOne attended the unveiling ceremony last month. Also present were Town Clerk Mark Bonilla, Receiver of Taxes Don Clavin, representatives from LIPA, National Grid, the Point Lookout Civic Association, the Lido Beach Civic Association, New York Institute of Technology, the U. S. Merchant Marine Academy, a clean waterways group named SPLASH and the New York State Energy Research Development Authority (NYSERDA).

WATCH THE VIDEO: Town of Hempstead sun-power unveiling ceremony 

 

Inland Port Magazine talks to SourceOne Project Engineer, Jules Nohra

 

Shore-Side Power Pedestals A Better Way to Power Docked Vessels?

Inland Port MagazineMassachusetts’ New Bedford Harbor Development Commission is installing shore-side power pedestal connections from SourceOne, a subsidiary of Veolia Energy
North America. Harbor visitors currently run on-board diesel generators to power their refrigeration units and other electrical equipment when docked, an age-old approach that is dirty and expensive. By investing in the shore power stations, New Bedford is providing a solution that is cheaper for the vessel owners and better for the environment. According to SourceOne, the project will pay for itself through the revenues generated by the power stations and reduce diesel fuel usage by approximately 310,000 gallons annually, equating to approximately 3,000 metric tons of avoided greenhouse gas emissions. If those savings projections are accurate, this could be an intriguing concept for port and harbor facilities across the United States. IP went to Jules Nohra, SourceOne Project Engineer, for the complete picture. Read the full interview

 

Fishing town reduces fleet’s dock-side diesel habit

 

Reprinted from smartplanet.com
By Heather Clancy
July 19, 2011, 11:49 AM PDT

 

New Bedford Harbor - dock water and power pedestalThe New Bedford Harbor Commission has hooked up with SourceOne, the energy management subsidiary of Veolia Energy North America, on a project to electrify the New Bedford Fisherman’s Wharf.

The arrangement calls for the organization to install shore-side pedestal power sources (like the one pictured) that the fishing fleet will use while in the harbor to power their boats. The pedestals will replace diesel generators.

The project is notable because New Bedford Harbor Commission is one of largest commercial fishing authorities in the United States. At any given time, it has an average of 132 boats in dock.

In all, the plans call for 42 pedestals to be installed on four of the New Bedford Harbor wharves: Fisherman’s Wharf, Steamship Pier and Coal Pocket Pier, Homer’s Wharf and Leonard’s Wharf. After all the pedestals are installed, the commission will cut its annual diesel fuel consumption by about 310,000 gallons annually. The commission believes this approach will also be cheaper for fishermen.

Said Kristin Decas, port director, CEO and Executive Director of the commission:

“This effort is part of the commission’s commitment to the revitalization of New Bedford’s historic harbor. The project team has done an excellent job of analyzing and recommending immediate solutions to reduce our carbon footprint and other air pollutants.”

The first phase will see eight pedestals installed on Fisherman’s Wharf in the next several months.



This article was originally published at http://www.smartplanet.com/blog/business-brains/fishing-town-reduces-fleets-dock-side-diesel-habit/17328

Reducing Carbon Emissions at New Bedford Harbor

 

Power connections to lower emissions for fishing fleet

NEW BEDFORD, Mass. — Forty-two shore-side power pedestal connections are being installed on four New Bedford piers to offer the city's commercial fishing fleet a cleaner and cheaper source of power, according to energy company Veolia Energy North America. The change will reduce greenhouse gas emissions by more than 3,000 metric tons, Veolia's subsidiary Boston-based SourceOne said.

SourceOne and Consulting Engineers Group Inc. were hired by the New Bedford Harbor Development Commission to install the power systems and thereby reduce GHG emissions from the commercial fishing fleet.

The first phase of the connections is expected to be installed in the coming months at New Bedford's Fisherman's Wharf. The connections will give the fishing fleet an alternative to the on-board diesel generators they have been using to power their refrigeration units and other electrical equipment.

"The Shore-side Power Electrification Project is an environmentally clean project that will reduce carbon emissions, and will transfer our vessels from diesel to the electric grid. It is a great sustainability project for the number one fishing port in the country and will move us away from the oil economy," said New Bedford Mayor Scott W. Lang.

Installation will start with eight pedestals to be placed on Fisherman's Wharf after which 16 pedestals will be installed on Steamship Pier and Coal Pocket Pier, six on Homer's Wharf and another 12 on Leonard's Wharf, the project team said.

Once the program is fully implemented and all 42 pedestals installed, New Bedford Harbor will enjoy a reduction of approximately 310,000 gallons of diesel fuel annually, which equates to approximately 3,000 Metric Tons of avoided GHG emissions, SourceOne said, based on its research that the pedestals will dramatically reduce or eliminate altogether the use of on-board diesel generators by fishermen.

SourceOne also estimates that pedestal electricity will be cheaper for fishermen compared to generator fuel costs.

"The Project Team has done an excellent job of analyzing and recommending immediate solutions to reduce our carbon footprint and other air pollutants. We are very excited to see work underway on the installation of these power pedestals, which we see as a critical part of our efforts to upgrade the harbor's infrastructure," said Kristin Decas, port director, CEO and executive director of New Bedford Harbor Development Commission.

New Bedford Harbor has an average of 132 boats docked at a time and over 470 boats annually.

"Not only will the installation of these power pedestals have an immediate impact on the harbor's carbon footprint, it will have a positive impact on commercial fisherman by saving costs associated with expensive diesel fuel," said Vincent Martin, SourceOne president.

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