Under the deal’s pay-for-performance structure, BAE Systems only pays for the actual energy savings realized from the program’s energy efficiency improvements, while immediately experiencing the environmental, operational and bottom-line benefits.
The project, currently underway and scheduled for completion in 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 all aspects of the project, will implement the energy efficiency measures and provide 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, new transformers and comprehensive campus energy policy.
Joe Berkemeyer, director of financial services at Siemens, said: “BAE Systems is only paying for the value of actual realized and verified savings. Because of our excellent track record of performance and financial strength, investors like Metrus can rely on our performance guarantee and offer this type of agreement to customers like BAE Systems.
”In essence, our program helps BAE Systems improve the sustainability of their operations from both an operational and environmental standpoint.”
Bob Hinkle, CEO of Metrus, said: “We’re addressing a large but vastly underserved market. The majority of energy efficiency services, programs and financing options largely have been limited to the domain of the government and public sector.
”The ESA specifically targets projects at private industrial and commercial facilities enabling these types of businesses to pay for retrofits through realized energy savings.”
