Siemens uses energy performance contract to help Orem, UT, make capital improvements

by Brianna Crandall — August 22, 2016 — Global technology provider Siemens has begun working on infrastructure improvements for Orem, Utah, located adjacent to Provo and 45 miles south of Salt Lake City. Expected to save the city an estimated $11.4 million in energy and operational cost savings and capital cost avoidance over 15 years, the initial project phase of this performance contract will allow Orem to use new technologies to make necessary capital improvements to meet the needs of its growing population and continued economic development.

Orem City Hall

The initial phase of the energy performance contract is expected to save Orem an estimated $11.4 million in energy and operational cost savings and capital cost avoidance over 15 years.

Orem City Manager Jamie Davidson commented:

This project means a lot to our city. We’re looking forward to bringing our community upgraded facilities, and we’re making these improvements with savings we’ll be generating. We’re confident that these upgrades will help us prepare for anticipated growth in our city for years to come. In every government’s quest to “do more with less,” using energy savings to make necessary improvements is a no-brainer.

Energy efficiency measures include upgrading the city’s 5,182 streetlights with LED bulbs, resulting in a projected annual savings of $181,000. The project scope also includes building automation modifications, HVAC enhancements, and building envelope improvements at the city center, public library, public safety building, senior center, recreation center, and citywide fire stations. Future infrastructure improvements may include upgrades to elevators, boilers, and generators, as well as water-saving technologies.

Dave Hopping, president of Siemens’ North America-based Building Technologies Division, noted:

Performance contracting has proven to be a cost-effective way for cities to meet operational and sustainability goals by freeing up capital for facility and municipal improvements. These upgrades will help Orem — which is one of the fastest-growing metropolitan areas in the U.S. — achieve significant energy savings and support the continued growth the city is experiencing.

Siemens says it has helped its customers realize more than $2 billion in energy and operational savings over the past 10 years. The company has implemented more than 1,000 guaranteed performance contract projects for its customers, updating thousands of buildings with the latest energy savings technologies. Its energy services and solutions range from energy savings analysis to implementation of facility improvement measures, to ongoing monitoring and verification.