by AF0919 e5 — September 22, 2008—NORESCO, a global leader in guaranteed energy savings programs and on-site energy management, has been chosen by the Pennsylvania State System of Higher Education (PASSHE) to implement $1.5 million in energy and building system upgrades at the Dixon University Center in Harrisburg, Pennsylvania. Key benefits of the project are improved energy and water efficiency, reduced energy and operating costs, greater system reliability, and improved working and learning conditions for building occupants.
Developed as a guaranteed energy savings agreement, the project will be funded by guaranteed cost savings over a 15-year term. This self-funding mechanism reduces the level of capital appropriations needed to pay for energy infrastructure improvements. Annual cost savings to PASSHE will exceed $85,000. PASSHE will also provide capital of $356,000 to fund specific cooling tower improvements that expand operating flexibility for the Center.
The project will produce environmental as well as cost control benefits. Emissions of carbon dioxide, a widely recognized contributor to global climate change, are expected to drop by more than 930,000 pounds each year. This is equivalent to removing 119 cars from the road or planting 148 acres of trees.
By their very nature, explains NORESCO, guaranteed energy savings agreements group energy conservation measures with varying terms of economic payback to create an optimal portfolio of improvements. In this case, the $843,000 cost of major replacements to chiller and boiler infrastructure is funded by future savings from the replacements themselves and by other actions.
Energy conservation measures such as state-of-the-art energy efficient lighting systems, improved energy management systems, and improved configuration of water services pay for themselves faster than the chiller and boiler improvements, notes the company. This leaves residual savings to support the chiller and boiler replacements.
NORESCO is one of the largest US energy service companies, specializing in the development, design, construction, financing, and operation of energy and environmental efficiency projects, performance contracting, and central energy plants.
For more information visit NORESCO Web site.
