Siemens and Metrus offer pay-for-performance energy efficiency plan

BAE Systems' deal with Siemens and Metrus requires it to only pay for energy savings realized from the program's comprehensive energy efficiency improvements.

03/19/2010


Siemens Industry Inc.'s Building Technologies Division and Metrus Energy Inc. have reached a financing agreement with BAE Systems, a defense industry supplier, to make its 450,000-square foot facility in Merrimack, N.H.,energy efficient. Under the deal's pay-for-performance structure, BAE Systems only pays for the actual energy savings realized from the program's comprehensive energy efficiency improvements.

The project, currently underway and scheduled for completionin the fall of 2010, is being underwritten by Metrus through its Efficiency Services Agreement (ESA). At the project's core is the energy savings performance guarantee delivered by Siemens. Siemens, which is managing allaspects of the project, will implement the energy efficiency measures andprovide the ongoing performance guarantee.

BAE Systems expects the program to save more than $200,000 annually in utility expenses. Siemens will generate energy savings through various energy efficiency retrofits and upgrades including a new compressor,building automation system improvements, a complete lighting retrofit, newtransformers, and a comprehensive campus energy policy.

"The majority of energy efficiency services, programs, andfinancing options largely have been limited to the domain of the government andpublic sector," said Bob Hinkle, CEO of Metrus. "The ESA specifically targets projects at private industrial and commercial facilities, enabling these typesof businesses to pay for retrofits through realized energy savings."

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-Edited by DavidGreenfield , editorial director
Control Engineering Sustainable Engineering
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