State agency energy performance contract projects underway

February 1, 2016

The Georgia Environmental Finance Authority (GEFA) today announced the University System of Georgia (USG), the Georgia World Congress Center (GWCC), and the Georgia Department of Corrections (GDC) have entered into energy performance contracts that will provide energy and water savings of approximately $113.9 million.

Each state agency partnered with an energy services company and conducted an Investment Grade Energy Audit to determine the appropriate energy and water conservation measures to implement. The audit is a comprehensive analysis tool that determines the practicality of implementing energy and water conservation measures, and the financial feasibility of entering into an energy performance contract.

The agencies will complete energy and water conservation projects and use the savings from those projects to pay for the work. Energy performance contracting improves facility efficiency, saves taxpayer dollars, and promotes the state’s culture of conservation. 

Project details:

The USG contracted with Johnson Controls to implement energy and water conservation measures at Georgia Tech and the University of Georgia (UGA).

Georgia Tech will complete energy conservation projects at its 10th Street and Holland heating and cooling plants. Guaranteed savings are estimated to be $1.4 million in the first year. Over the term of the contract, the guaranteed savings will exceed $13 million. The total project cost is $7.8 million. The project is financed by U.S. Bank with 2.035 percent interest for seven years.

UGA will complete energy and water conservation projects at eight of its facilities on its East Campus in Athens. Projects include interior lighting and lighting control upgrades, domestic water conservation initiatives, chilled water plant improvements, and building automation and controls upgrades. Guaranteed savings are estimated to be $390,313 in the first year. Over the term of the contract, the guaranteed savings will exceed $2.9 million. The total project cost is $2.4 million. The project is financed by U.S. Bank with 2.009 percent interest for seven years.

The GWCC contracted with Trane to implement energy and water conservation measures at the convention center and at Centennial Olympic Park. Trane conducted an Investment Grade Energy Audit and recommended several energy and water conservation measures, including new lighting inside the Congress Center, outside of the facility and in Centennial Park, and chiller and boiler replacement for the facility. Guaranteed savings are expected to be approximately $2.5 million in the first year. Over the term of the contract, the guaranteed savings will exceed $49 million. The total project cost is $27.8 million. The project is financed by Hannon Armstrong with 4.83 percent interest for 17 years.

The GDC contracted with Noresco to implement energy and water conservation measures at five facilities throughout the state: Arrendale State Prison in Alto, Ga.; Georgia Diagnostic and Classification State Prison in Jackson, Ga.; Georgia State Prison in Reidsville, Ga.; Hays State Prison in Trion, Ga.; and Wilcox State Prison in Abbeville, Ga.

The project includes HVAC improvements, water treatment, piping and insulation, boilers, chillers and controls, domestic hot water system improvements, lighting upgrades and water conservation initiatives. Guaranteed savings are estimated to be $2.7 million in the first year. Over the 15-year term of the contract, the guaranteed savings will exceed $49 million. The total project cost is $28.6 million. The project is financed by U.S. Bank with 2.574 percent interest for 15 years.

The total annual amount of energy and water savings for these projects is equal to the energy that approximately 3,250 typical Georgia homes use in a year, and the water for approximately 285 Olympic-sized swimming pools.

Additional information:

Energy performance contracting permits state agencies to finance building improvements designed to lower energy and water consumption. The state goes through an open, competitive process to choose an energy services company to implement energy efficiency and water conservation measures at participating state facilities. The energy services company selected must guarantee that the state will save a certain amount of money with the installation of energy- and water-efficient equipment and systems. The state uses the guaranteed savings to pay for the work over a period of years. As a result, state agencies are able to finance energy and water conservation projects. Energy performance contracting also helps the state meet its commitment to the Georgia Energy Challenge and reduce energy consumption by 15 percent in state facilities.