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

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