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At least 19 records

Beyond Guaranteed Savings: Additional Cost Savings Associated With ESPC Projects

Energy Savings Performance Contract (ESPC) projects are generally believed to deliver only small cost savings to the government, given that most of the guaranteed savings are paid to the Energy Service Company (ESCO). The main conclusion of this report is that significant cost savings do accrue to the government. These savings come about because (1) the ESCO does not guarantee all of the savings it estimates; (2) the useful life of the equipment extends beyond the performance period of the ESPC; (3) National Institutes for Standards and Technology (NIST)/Energy Information Administration projections for energy price escalation have been very conservative with respect to actual price increases; and (4) the baseline case that forms the basis of the guaranteed savings calculation assumes that the baseline equipment would maintain the same efficiency and require the same level of maintenance for a period of time equal to the performance period of the ESPC. More realistic assumptions indicate that for a representative project, the federal government receives nearly twice the level of cost savings guaranteed by the ESCO. Figure 1 presents a breakdown of the sources of these savings.

Shonder, John A.↗

Realizing High-Accuracy Low-Cost Measurement and Verification for Deep Cost Savings (BPA Cost Share CRADA)

Developed practitioner workflows that integrate advanced M&V tools with supplementary automated routines for non-routine adjustments and for quantification of savings uncertainty to indicate rigor. Demonstrated these workflows with Seattle City Light, in collaboration with their implementers and evaluators – determine labor and time/cost savings, and uncertainty of the results obtained. Engaged the Pacific Northwest regulatory community to determine acceptance criteria for the required accuracy and reporting of advanced whole-building M&V. Documented the findings to facilitate broad industry uptake of the solutions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Potential Heating Energy and Cost Savings of Dual Fuel Heat Pump Controls as a Residential Building Equipment Retrofit in the U.S.

This study investigated the energy and cost savings potential by modeling a dual fuel heat pump system with its control for a residential building in (5A) cold climate in U.S. The simulation analysis showed that the application of the DFHP system and its control to the target building can save the heating energy by 42% over a gas furnace system (baseline system). Although the HP-only system can save more heating energy (i.e., 53%) over the baseline system than DFHP system does, the DFHP with its control demonstrated the higher cost savings when a time of use electricity rate was considered.

Yoon, Yeobeom↗

Efficiency and Demand Flexibility in Large Office Buildings: The Potential for Cost Savings and CO 2 Reductions from Lighting and Cooling Measures

This report presents the estimated impact of lighting and cooling efficiency and demand flexibility measures in large office buildings in each state in the contiguous United States. It provides modeled results for three different metrics: bill savings, regional grid operational costs savings, and carbon dioxide (CO 2 ) emissions reductions. Lighting efficiency and demand flexibility are estimated to reduce load by up to 80 MWh/yr in a single large office building. These load reductions result in customer bill savings of up to $8,800/yr per building, with the highest savings in southern and midwestern states. Grid operating cost savings are estimated at up to $3,240/yr/building, with greatest benefit in southern and northeastern states. CO 2 emissions reduction potential is highest in the Dakotas, Nebraska, across the Midwest, in West Virginia, and in Mississippi (<48,200 kg/yr/building). Comparatively, cooling measures are found to have less load reduction potential (<28.5 MWh/yr/building), with the greatest potential in southern states including Texas, which ranks top of the list across several of the metrics studied. In numerous states, shifting cooling load to off-peak hours is found to increase costs and CO 2 emissions because precooling results in increased load during high-cost or high-CO 2 emissions periods. In general, focusing on cooling efficiency and load shedding has the potential for more savings. In all cases, the specific rate structure is a significant determinant in actual bill savings, which are up to $4,000/yr/building. To realize the full potential for bill savings through an energy measure, building operators must identify how the measure will change the building load pattern and the interaction of this load change with the applicable rate tariff. To realize CO 2 emissions reductions, industry and state coordination is needed to verify which fuel source is on the margin and then to create incentives for end users to reduce load during high-CO 2 emissions hours. Regular updates to data sets and analyses are critical. Regulators and policymakers are well positioned to facilitate the necessary coordination between the electric industry and building energy managers to develop appropriate price signals and incentives.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Reported Energy and Cost Savings from the DOE ESPC Program: FY 2014

The objective of this work was to determine the realization rate of energy and cost savings from the Department of Energy’s Energy Savings Performance Contract (ESPC) program based on information reported by the energy services companies (ESCOs) that are carrying out ESPC projects at federal sites. Information was extracted from 156 Measurement and Verification (M&V) reports to determine reported, estimated, and guaranteed cost savings and reported and estimated energy savings for the previous contract year. Because the quality of the reports varied, it was not possible to determine all of these parameters for each project. For all 156 projects, there was sufficient information to compare estimated, reported, and guaranteed cost savings. For this group, the total estimated cost savings for the reporting periods addressed were $\$$210.6 million, total reported cost savings were $\$$215.1 million, and total guaranteed cost savings were $\$$$204.5 million. This means that on average: ESPC contractors guaranteed 97% of the estimated cost savings; projects reported achieving 102% of the estimated cost savings; and projects reported achieving 105% of the guaranteed cost savings. For 155 of the projects examined, there was sufficient information to compare estimated and reported energy savings. On the basis of site energy, estimated savings for those projects for the previous year totaled 11.938 million MMBtu, and reported savings were 12.138 million MMBtu, 101.7% of the estimated energy savings. On the basis of source energy, total estimated energy savings for the 155 projects were 19.052 million MMBtu, and reported saving were 19.516 million MMBtu, 102.4% of the estimated energy savings.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Model-based optimal design of active cool thermal energy storage for maximal life-cycle cost saving from demand management in commercial buildings

This article provides a method in comprehensive evaluation of cost-saving potential of active cool thermal energy storage (CTES) integrated with HVAC system for demand management in non-residential building. The active storage is beneficial by shifting peak demand for peak load management (PLM) as well as providing longer duration and larger capacity of demand response (DR). In this research, a model-based optimal design method using genetic algorithm is developed to optimize the capacity of active CTES aiming for maximizing the life-cycle cost saving concerning capital cost associated with storage capacity as well as incentives from both fast DR and PLM. In the method, the active CTES operates under a fast DR control strategy during DR events while under the storage-priority operation mode to shift peak demand during normal days. The optimal storage capacities, maximum annual net cost saving and corresponding power reduction set-points during DR event are obtained by using the proposed optimal design method. Lastly, this research provides guidance in comprehensive evaluation of cost-saving potential of CTES integrated with HVAC system for building demand management including both fast DR and PLM.

25 ENERGY STORAGE↗

Energy and cost saving results for advanced technology systems from the Cogeneration Technology Alternatives Study (CTAS)

An overview of the organization and methodology of the Cogeneration Technology Alternatives Study is presented. The objectives of the study were to identify the most attractive advanced energy conversion systems for industrial cogeneration applications in the future and to assess the advantages of advanced technology systems compared to those systems commercially available today. Advanced systems studied include steam turbines, open and closed cycle gas turbines, combined cycles, diesel engines, Stirling engines, phosphoric acid and molten carbonate fuel cells and thermionics. Steam turbines, open cycle gas turbines, combined cycles, and diesel engines were also analyzed in versions typical of today's commercially available technology to provide a base against which to measure the advanced systems. Cogeneration applications in the major energy consuming manufacturing industries were considered. Results of the study in terms of plant level energy savings, annual energy cost savings and economic attractiveness are presented for the various energy conversion systems considered.

Sagerman, G. D.↗

Energy and cost savings results for advanced technology systems from the Cogeneration Technology Alternatives Study /CTAS/

The Cogeneration Technology Alternatives Study (CTAS), a program undertaken to identify the most attractive advanced energy conversion systems for industrial cogeneration applications in the 1985-2000 time period, is described, and preliminary results are presented. Two cogeneration options are included in the analysis: a topping application, in which fuel is input to the energy conversion system which generates electricity and waste heat from the conversion system is used to provide heat to the process, and a bottoming application, in which fuel is burned to provide high temperature process heat and waste heat from the process is used as thermal input to the energy conversion system which generates energy. Steam turbines, open and closed cycle gas turbines, combined cycles, diesel engines, Stirling engines, phosphoric acid and molten carbonate fuel cells and thermionics are examined. Expected plant level energy savings, annual energy cost savings, and other results of the economic analysis are given, and the sensitivity of these results to the assumptions concerning fuel prices, price of purchased electricity and the potential effects of regional energy use characteristics is discussed.

Sagerman, G. D.↗

Solar thermal technology development: Estimated market size and energy cost savings. Volume 1: Executive summary

Estimated future energy cost savings associated with the development of cost-competitive solar thermal technologies (STT) are discussed. Analysis is restricted to STT in electric applications for 16 high-insolation/high-energy-price states. The fuel price scenarios and three 1990 STT system costs are considered, reflecting uncertainty over future fuel prices and STT cost projections. STT R&D is found to be unacceptably risky for private industry in the absence of federal support. Energy cost savings were projected to range from $0 to $10 billion (1990 values in 1981 dollars), dependng on the system cost and fuel price scenario. Normal R&D investment risks are accentuated because the Organization of Petroleum Exporting Countries (OPEC) cartel can artificially manipulate oil prices and undercut growth of alternative energy sources. Federal participation in STT R&D to help capture the potential benefits of developing cost-competitive STT was found to be in the national interest.

Gates, W. R.↗

Solar thermal technology development: Estimated market size and energy cost savings. Volume 2: Assumptions, methodology and results

Estimated future energy cost savings associated with the development of cost-competitive solar thermal technologies (STT) are discussed. Analysis is restricted to STT in electric applications for 16 high-insolation/high-energy-price states. Three fuel price scenarios and three 1990 STT system costs are considered, reflecting uncertainty over future fuel prices and STT cost projections. Solar thermal technology research and development (R&D) is found to be unacceptably risky for private industry in the absence of federal support. Energy cost savings were projected to range from $0 to $10 billion (1990 values in 1981 dollars), depending on the system cost and fuel price scenario. Normal R&D investment risks are accentuated because the Organization of Petroleum Exporting Countries (OPEC) cartel can artificially manipulate oil prices and undercut growth of alternative energy sources. Federal participation in STT R&D to help capture the potential benefits of developing cost-competitive STT was found to be in the national interest. Analysis is also provided regarding two federal incentives currently in use: The Federal Business Energy Tax Credit and direct R&D funding.

Gates, W. R.↗

Reported Energy and Cost Savings from the DOE ESPC IDIQ Program: FY 2024

Energy Savings Performance Contracts (ESPCs)are a contractual mechanism that allow a federal agency to procure energy savings and facility improvements without upfront capital costs to reduce costs and resiliency. ESPCs are covered under FAR Part 23.2, and 42 USC § 8287. Section 8287(a)(2)(A) of Title 42 of the U.S. Code requires that each energy savings performance contract (ESPC) undergo an annual energy audit, resulting in a separate audit report for every project. The objective of the present report is to compile and analyze all annual ESPC audit reports issued between October 1, 2023, and September 30, 2024, for projects awarded under Generations 1, 2, and 3 of DOE’s ESPC IDIQ contracts. During this period, 205 measurement and verification (M&V) reports were produced for 200 projects; the total number of reports exceeds the number of projects because some projects generated more than one report(for example, a few projects measure savings twice per year and produce two audit reports annually, each covering a different six-month period). By aggregating the results from these individual audits, the report determines the portfolio-wide realization rate of energy and cost savings for all active ESPC projects awarded under DOE’s IDIQ program. For all 205audit reports, sufficient information was available to compare project-level estimated, reported, and guaranteed cost savings. Reported cost savings accounted for ESCO verified savings per each project’s M&V plan. The total reported cost savings for the period addressed were $\$$647.8million,compared with the total guaranteed cost savings of $\$$601.6million. On average across the reported projects: •ESPC contractors guaranteed 92.8% of the estimated cost savings• projects reported achieving 100.0% of the estimated cost savings• projects reported achieving 107.7% of the guaranteed cost savings. The M&V performed for the period indicated adjustments for government operations and maintenance impacts to savings amount to$\$$43.9millionandcould be restored with the original operational parameters for impacted projects. Accounting for this potential cost savings impact, these projects still realized 100.4% of the guaranteed cost savings. The information on estimated and reported energy savings was collected and compared for all 205of the reports examined. Based on site energy, estimated savings totaled 14.88million MMBtu, and reported savings were 15.33million MMBtu; 3.1% greater than the estimated energy savings. All of the reports examined contained sufficient information to calculate source energy savings. Based on site-adjusted source energy, total estimated energy savings were 20.90 million MMBtu, and reported savings were 21.22million MMBtu, 101.5% of the estimated energy savings. For water savings, the estimated savings were 11,539,055 kGal and the reported savings were 13,315,930 kGal. This means 1,776,875 kGal more water was saved than estimated, which is about 15% higher than the estimate. These results indicate that, overall, the reported energy savings slightly exceeded the estimated values, while estimated water savings significantly exceeded estimated values, suggesting that the projects achieved greater cost savings than originally projected. The total annual expense for the ESCOs to perform annual M&V audits and reporting was $\$$10.02million. Through this effort, $\$$647.8 million in annual cost savings was verified. The M&V results indicated that $\$$43.9 million of these verified savings reflected adjustments due to government operations A-6and maintenance impacts, which could be restored under the original operational parameters for the affected projects. These findings show the value of M&V that only costs 1.7%of the guaranteed cost savings to ensure guarantees are met.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Potential for the Use of Energy Savings Performance Contracts to Reduce Energy Consumption and Provide Energy and Cost Savings in Non-Building Applications

The findings of this study indicate that potential exists in non-building applications to save energy and costs. This potential could save billions of federal dollars, reduce reliance on fossil fuels, increase energy independence and security, and reduce greenhouse gas emissions. The Federal Government has nearly twenty years of experience with achieving similar energy cost reductions, and letting the energy costs savings pay for themselves, by applying energy savings performance contracts (ESPC) in its buildings. Currently, the application of ESPCs is limited by statute to federal buildings. This study indicates that ESPCs can be a compatible and effective contracting tool for achieving savings in non-building applications.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Potential Energy Cost Savings from Increased Commercial Energy Code Compliance

An important question for commercial energy code compliance is: “How much energy cost savings can better compliance achieve?” This question is in sharp contrast to prior efforts that used a checklist of code requirements, each of which was graded pass or fail. Percent compliance for any given building was simply the percent of individual requirements that passed. A field investigation method is being developed that goes beyond the binary approach to determine how much energy cost savings is not realized. Prototype building simulations were used to estimate the energy cost impact of varying levels of non-compliance for newly constructed office buildings in climate zone 4C. Field data collected from actual buildings on specific conditions relative to code requirements was then applied to the simulation results to find the potential lost energy savings for a single building or for a sample of buildings. This new methodology was tested on nine office buildings in climate zone 4C. The amount of additional energy cost savings they could have achieved had they complied fully with the 2012 International Energy Conservation Code is determined. This paper will present the results of the test, lessons learned, describe follow-on research that is needed to verify that the methodology is both accurate and practical, and discuss the benefits that might accrue if the method were widely adopted.

code compliance, commercial energy code, energy co↗

Potential Energy Cost Savings from Increased Commercial Energy Code Compliance

An important question for commercial energy code compliance is: “How much energy cost savings can better compliance achieve?” This question is in sharp contrast to prior efforts that used a checklist of code requirements, each of which was graded pass or fail. Percent compliance for any given building was simply the percent of individual requirements that passed. A field investigation method is being developed that goes beyond the binary approach to determine how much energy cost savings is not realized. Prototype building simulations were used to estimate the energy cost impact of varying levels of non-compliance for newly constructed office buildings in climate zone 4C. Field data collected from actual buildings on specific conditions relative to code requirements was then applied to the simulation results to find the potential lost energy savings for a single building or for a sample of buildings. This new methodology was tested on nine office buildings in climate zone 4C. The amount of additional energy cost savings they could have achieved had they complied fully with the 2012 International Energy Conservation Code is determined. This paper will present the results of the test, lessons learned, describe follow-on research that is needed to verify that the methodology is both accurate and practical, and discuss the benefits that might accrue if the method were widely adopted.

code compliance↗

Potential Heating Energy and Cost Savings of Dual Fuel Heat Pump Controls as a Residential Building Equipment Retrofit in the U.S.

This study investigated the energy and cost savings potential by modeling a dual fuel heat pump system with its control for a residential building in (5A) cold climate in U.S. The simulation analysis showed that the application of the DFHP system and its control to the target building can save the heating energy by 42% over a gas furnace system (baseline system). Although the HP-only system can save more heating energy (i.e.,53%) over the baseline system than DFHP system does, the DFHP with its control demonstrated the higher cost savings when a time of use electricity rate was considered.

Dual Fuel Heat Pump, Control, Residential Building↗

Reported Energy and Cost Savings from the DOE ESPC IDIQ Program: FY2021

The objective of this work was to determine the realization rate of energy and cost savings from the U.S. Department of Energy’s (DOE’s) Energy Savings Performance Contract (ESPC) program based on information reported by the energy services companies (ESCOs) that are carrying out ESPC projects at federal sites. Information was extracted from 201 measurement and verification (M&V) reports covering 193 projects to determine reported, estimated, and guaranteed cost savings and the associated reported and estimated energy savings for the previous contract performance year. This report covers projects that had a performance year ending in fiscal year 2021, between October 1, 2020 and September 30, 2021, and had an M&V report issued. Additionally, the annual cost to perform M&V was extracted from the individual project Task Order (TO) Schedules.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Reported Energy and Cost Savings from the DOE ESPC Program: FY 2012

The objective of this work was to determine the realization rate of energy and cost savings from the Department of Energy’s Energy Savings Performance Contract (ESPC) program based on information reported by the energy services companies (ESCOs) that are carrying out ESPC projects at federal sites. Information was extracted from 142 Measurement and Verification (M&V) reports to determine reported, estimated, and guaranteed cost savings and reported and estimated energy savings for the previous contract year. Because the quality of the reports varied, it was not possible to determine all of these parameters for each project.

Slattery, Bob S.↗