Energy Savings Performance Contracts (ESPCs)
- Government partners with private sector companies and utilities to install energy and water conservation measures without the need for upfront appropriations.
- Private sector companies take on the performance risk of the equipment and obtain competitive financing from a third-party lender.
- Agency pays them back over time from the energy and water savings associated with the more efficient equipment.
- Provides a solution to more immediately upgrade aging infrastructure and critical building systems when appropriations are not readily available.
VA awarded $591 million of energy performance contracts from 2012.
- Anticipated to result in $39 million of annual avoided energy and water costs for VA
- Addressing energy infrastructure and building system needs at 58 VA medical centers across the country
- Long-term avoided costs projected to exceed $1 billion for VA facilities
- Ingenuity and large impact in leveraging energy and related savings to finance the critical replacement of a central boiler plant
- Projected to save $817,000 annually in natural gas and electricity costs
- Recognition from White House and Department of Energy