Current Policies and Practices Related to the Incorporation of Non-energy Benefits in Energy Saving Performance Contract Projects (original) (raw)

This paper analyzes current policies and practices related to the incorporation of non-energy measures (NEMs) and their benefits to energy saving performance contract (ESPC) projects implemented by the U.S. energy service company (ESCO) industry. Previous research by our team has found that projects in the public and institutional sector are increasingly using ESPCs to address various non-energy-related needs (e.g., roof replacement). Unfortunately, there is no consistent guidance on methodologies for incorporating non-energy benefits (NEBs) into the cost/benefit analyses of projects. This paper presents the results of an in-depth review of state-by-state and federal legislation of the incorporation of non-energy benefits, including measures and benefits allowed and restrictions that apply. Case studies indicate that the value of NEBs can be as much as 40% or more of the total economic savings generated by an ESPC project. However, there is significant variation across regions and l...