Super ESPC Pipeline Surpasses $1 Billion Mark

April 11, 2008

For the first time since the use of the DOE Super Energy Savings Performance Contract (ESPC) began in 1998, the dollar value of projects in development now exceeds the $1 billion mark. As of January 2008, DOE's Super ESPC Pipeline report, which monitors all ESPC projects undergoing development prior to award, totaled just over $1 billion across all Federal agencies. While the pipeline report reflects initial project proposals and not actual award values, 2008's total ESPC investment is nevertheless expected to significantly exceed previous levels. Under ESPCs, contractors pay the up-front costs for energy efficiency improvements and are repaid through energy savings over the life of the contract.

The value of potential projects greatly increased in FY 2007 due in part to the Department of Energy's Transformational Energy Action Management (TEAM) Initiative, whereby energy service companies (ESCOs) have been deployed across the DOE complex to take full advantage of life-cycle cost-effective energy conservation measures. The TEAM Initiative is designed to be a replicable model of energy management, with practices that can be copied by other agencies to achieve similar results.

The majority of the Federal ESPC projects are being developed at the Department of Defense (48 percent) and the Department of Energy (40 percent). The remaining projects are being developed at the Departments of Justice (6 percent), Health and Human Services (2 percent), Veteran's Affairs (2 percent), and Homeland Security (1 percent).

FEMP estimates that the Federal government will need to sustain a level of ESPC investment over $1 billion through 2015 if the Federal Government is to meet its energy, renewable, water, and environmental management goals mandated by Executive Order 13423 and the Energy Independence and Security Act of 2007.

For more information, please contact Kasey Curtis of FEMP at Kasey.Curtis@hq.doe.gov or 202-586-9320.