Building Management Hawaii - (Page 34)
An ESA Can Deliver Peace of Mind
Consider budget-friendly options while creating energy savings
BY DUANE ASHIMINE
EnErgy MAnAgEMEnt
B
usinesses and property owners
looking to deploy energy-efficient
equipment to improve their system
reliability and lower operating
costs are often deterred by upfront
costs. Following the emergence and
success of third-party financing for
solar photovoltaic systems, energyefficiency financing is now firmly
established and prevalent in the
marketplace and facilitating the
implementation of projects.
One of the leading financing
options is the Energy Savings
Agreement (ESA). The ESA is a unique
program that provides new, reliable
and energy-efficient equipment with
no upfront capital outlay and the
energy savings generated are used to
pay for the cost of the measures.
The flexible nature of the
financing program allows for a wide
range of efficiency retrofits to be
incorporated, including large HVAC
systems, chillers, boilers, lighting,
motors and more. Furthermore,
additional upgrades can be added to
the existing program throughout the
term of the agreement.
Under the ESA, the system will
be owned, operated and managed by
a third party for the entire course of
the agreement, removing the need for
the client to plan for maintenance and
equipment replacement, essentially
providing energy efficiency as an
outsourced service to the client.
This performance contract
type program has been used in
34
February-March 2015
BMH
Financing agreements allow a property to install new equipment with minimal upfront costs
the public sector (government
buildings, schools, etc.) for many
years but recent advancements in
measurement and verification, along
with insurance underwriting of the
energy savings now provides this
same access to the private sector.
The ESA is ideal for clients with
central plant operations seeking
to generate additional cash flow
through energy savings.
In September 2014, Kuakini
Medical Center installed a $5.8
million energy-efficiency system
with no upfront cost while
reducing its total utility cost.
Employing an ESA, the entire
system cost was financed by a third
party and a portion of the energy
savings from the measures are used
to repay the cost of the installation
over the next 10 years. Some of the
savings will be retained by Kuakini
for use in its operations.
Similar to many other Hawaii
facilities, there was deferred
maintenance on Kuakini's central plant
and lighting systems, as its capital
was focused on core operational
services for the patients. While there
was always interest in making capital
improvements to its central plant
and lighting systems, budgetary
restrictions made this a challenge,
with upgrades made only as capital
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Table of Contents for the Digital Edition of Building Management Hawaii
Editor’s Note: Energy Management
Insider’s Guide to Picking a Security Company for Your Property
Industry News
Dealing with Graffiti and Glass Damage
Hawaii’s High-Tech Roofing Products
Building and Management Expo Set
Installing New & Improved Windows
Window Film Cuts Glare, Energy Bills
Reassessing Hurricane Preparedness
An ESA Can Deliver Peace of Mind
Checking a Building’s Energy Score
Managing PV Energy Consumption
The Ultimate Energy-Efficient Building
What to Know About Chiller Plants
New Trends Emerge in HVAC Systems
Walk-throughs Vital to Engineers
Trapped in the Web of Act 326
Faces: The IREM Banquet
Building Management Hawaii
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