Under the terms of the agreement, Penacook Place will soon receive a sizable portion of its energy from an on-site 75kW cogeneration facility, which will be owned and operated by American DG Energy. The value of the agreement to American DG Energy is estimated to be $2 million over the program term.
American DG Energy will produce clean energy in the form of electricity and space heating at Penacook Place and sell it to Penacook at a price lower than the local energy utility. Penacook will pay only for the energy it uses and will avoid all capital, installation and operating costs. The energy will be produced with small-scale, combined heat and power (CHP) equipment located at the property site but owned and operated by American DG Energy.
American DG Energy will handle all service, maintenance and repair. Penacook Place will not need any manpower to support the equipment. In addition, the equipment is expected to reduce the reliance on an existing boiler plant, which will extend the life of the boiler and reduce its annual operating expenditures.
