Sustainability at ORNL

Energy Saving Performance Contracts

An Energy Savings Performance Contract (ESPC) is a partnership between an energy services company (ESCO) and its customer. The ESPC is formed for the purpose of financing and implementing cost-saving energy and water-efficiency improvements. The ESCO typically finances and installs the new equipment at its expense, and the customer repays the ESCO over the life of the contract using the cost savings resulting from the project. ESPCs have been used by public and private customers for over twenty years and have been proven to be an effective method for upgrading existing facilities. DOE signed an $88.1 million ESPC with Johnson Controls, Inc., for the ORNL site in the summer of 2008. Johnson Controls will implement advanced energy and water conservation solutions, including a biomass gasification system, for the campus. ORNL is guaranteed $8 million in annual energy savings over the 18 years of the contract. This contract was initiated to address DOE’s Transformational Energy Action Management (TEAM) initiative, which will transform the DOE's energy, environmental and transportation management and address the goals of Executive Order 13423 and DOE Order 430.2B. Eight energy conservation measures are included in the contract: (1) biomass steam production, (2) steam system decentralization of remote buildings, (3) upgrade to building management systems, (4) advanced electric metering and energy awareness training, (5) mechanical equipment upgrades, (6) energy-efficient lighting upgrade, (7) domestic water conservation, and (8) elimination of once-through cooling for an air compressor. Back