Energy Performance Contracting
DGS Office of Energy and Sustainability (OES) manages an energy performance contracting (EPC) program that results in energy savings, carbon emissions reductions, and mechanical and electrical equipment upgrades. As of 2023, 41 EPC projects serving state agencies have been developed and installed. Annually, over 80,000 mTons of CO2 emissions have been reduced and over $19 million of energy have been saved.
To ensure goals are met and State dollars are utilized effectively, EPCs, renewable energy projects and other energy efficiency initiatives must be closely monitored. The DGS OES offers comprehensive Measurement and Verification (M&V) services to State agencies to ensure these energy savings and carbon emissions reductions. M&V is the engineering and statistical practice that tracks energy reduction initiatives to determine whether they are performing as intended.
DGS OES collaborates with state agencies to identify potential projects, sites, and buildings for projects. DGS establishes a representative baseline year against which to measure future changes in usage and cost. DGS relies heavily on the State’s online energy database “EnergyCAP” to access utility records. Contractors must present a detailed M&V Plan for DGS review and approval, prior to implementation of any efficiency measures. Contractors are required to provide an annual report documenting the performance of the installed energy efficiency measures and DGS checks to verify that contractors’ reported results are accurate and in accordance with the State’s requirements.
Should DGS determine that annual avoided cost targets have not been achieved, the contractor must compensate an agency for the shortfall. This process ensures that an agency’s operating budget, from which utilities and project financing are covered, is not adversely affected by a project which fails to perform as guaranteed.
Due to the rigor of the program, a great majority of projects meet and exceed the anticipated performance. For example, at the Spring Grove Hospital Center, energy conservation measures under an EPC completed in January 2010 provided confirmed avoided utility costs of more than $5.5 million, nearly $1.4 million in excess of the guarantee over that period. For project details see links below:
To inquire if your agency may have sites and facilities that could be candidates for an EPC, please complete the form linked here and submit per the instructions on the form. Questions about the program can be directed to:
Chief, Building Energy Programs