By Joe Berkemeyer, Director, Financial Services and Steve Hoiberg, Global Market Manager, Higher Education, Siemens Industry Inc.
(This article appears in the August, 2011 issue of The ACUPCC Implementer)
Capital restriction is one of the greatest impediments to making energy efficiency and facility infrastructure improvements. Siemens Industry, Inc., has developed a comprehensive program that eliminates that hurdle. Conserv™ allows private higher education customers to enhance their properties without allocating capital. The contract is structured as a services agreement that meets U.S. and international accounting standards.
Funding Energy Conservation Projects
In the past decade colleges and universities have set high standards for environmental and sustainability goals; in many cases, numerous energy efficiency measures with quick paybacks have already been implemented. As such, institutions are now asking themselves how to accomplish the next round of energy efficiency measures, those that will allow them to achieve 100% of their sustainability/energy/green goals. This next level of improvements, often involving longer paybacks, puts additional pressure on already strained capital funding. The mandate remains “do more with less.” As a result, administrators are challenged with allocating capital to conservation projects though the demand for capital resources continues to grow. Siemens Industry, Inc., has developed a program that enables private colleges and universities to realize the benefits of investing in sustainability and meeting their environmental goals while mitigating the impact the investments have on capital budgets.
Siemens Conserv™ program allows for the installation of a comprehensive equipment package that reduces utility consumption and other operating costs. One key component relates to the customer’s obligation to pay for the improvements; it’s completely limited to the extent that cost reductions are achieved. For each period, customarily a year, Siemens provides an extensive audit and verifies the actual amount of cost reductions. The customer’s cost is based on the results of the audit. Siemens uses indus¬try-standard IPMVP protocols and calculations that can be independently verified.
Conserv™ – Capital Contract
Energy and operational savings for Conserv™ agreements are derived from facility improvement measures. Utilizing this methodology, colleges and universities are able to do more in regard to energy efficiency and infrastructure improvements.
Facility improvement measures implemented and operational savings realized by Conserv™ customers include:
- Facility Improvement Measures – Building automation & controls, Heating, Ventilation and Air Conditioning (HVAC), building envelope improvements, chilled/steam/hot water system improvements, metering, pumps, fans, motors and drives, domestic water, cogeneration (onsite generation of electricity), compressor system improve¬ments, renewable energy, utility rate optimization.
- Operational Reduction – There are a variety of operating costs reductions ConservTM can utilitize such as reductions in maintenance costs and capital cost avoidance.
Customers utilizing this program have been able to improve their infrastructure while directing operating capital to other projects or programs. These customers pay for performance that has been generated, nothing more.