Determining The Saturation Level of Energy Savings Performance Contracts in the U.S. Army

摘要

Nearly two decades ago the United States Army began a program seeking to improve energy efficiency through third party contracts. Third parties would be brought on to Army bases to provide energy efficiency through improved infrastructure. The funding of and execution of these projects are the responsibility of the private enterprise. These companies would be paid in kind for any realized energy savings resulting from improved infrastructure. These contracts became known as Energy Savings Performance Contracts (ESPCs). As this program has risen in popularity, several billions of dollars in private investments have been given to it. This popularity shows that the time has come to see if performance has kept pace with cost. This study examines third party investment and cost obligation incurred as a result. Our study seeks to find the proportion of the Army's stated energy budget that is obligated to third party energy contracts. This proportion is deemed the 'saturation level' and may imply a significant burden given the dynamics of pricing, cost, and the current budget environment. With uncertainty in the domains of fiscal priorities and energy prices this study is timely and important.