Tuesday, January 11, 2011

Taking the Risk Out of Energy Efficiency

In December BAE, which has its U.S. headquarters in Arlington, Virginia, announced a $2 million project to upgrade heating and cooling equipment, pumps, and motors and control systems at its facility in Greenlawn, New York. The company won't be paying that price for the upgrades, however. Instead, it will pay project developer Metrus Energy an amount based on how much it saves on energy use. The project, set for completion in 2011, reflects a growing market for energy efficiency projects in which payment is tied to the amount of energy saved over time. This approach has been common for about two decades in public facilities such as government buildings, academic institutions, and hospitals, says Peter Larsen, a researcher at the Lawrence Berkeley National Laboratory, which has tracked the energy service market for over 15 years and amassed a database of about 3,500 projects. More>