Could What That ESCO Sales Rep Said Really Be True? Savings Realization Rates in ESPC versus Bid-to-Spec Projects

摘要

Claims that savings realization is greater in energy savings performance contractsrn(ESPCs) are rampant – at least among energy service company representatives and other ESPCrncheerleaders. But hard supporting evidence for these claims has been virtually non-existent. ThernDepartment of Energy’s Federal Energy Management Program uses its Compliance TrackingrnSystem (CTS) database to document the performance of federal buildings and projects towardsrnmeeting various federal energy-saving goals. This paper focuses on preliminary analysis fromrnCTS to understand and compare the performance of federal ESPCs with projects that have beenrnimplemented with more conventional government appropriations funding. The authors havernfound preliminary evidence using CTS that shows markedly higher savings realization ratesrnamong ESPC projects than appropriations-funded ones. There are numerous caveats to the datarncomparison that clamor for further study, but the difference is still intriguing. If borne out, thisrnfinding will provide concrete support to the idea that ESPCs’ guarantees and measurement andrnverification, long touted by energy service companies (ESCOs) as offering savings assurance,rnmay truly yield substantial benefits. If ESPCs actually do perform better (i.e., have higherrnrealization rates and savings persistence) than conventional bid-to-spec projects, the perceivedrnpremium for conducting them may look like a very good deal after all.