The University of Kentucky has released details of an energy savings performance contract it signed with Ameresco and on what it will save after the yearlong, energy-savings retrofit of 61 campus buildings, totaling 5.2 million square feet.
The overall project is funded by UK-issued bonds valued at $25 million and will produce anticipated annual savings of $2,430,000. UK says these annual savings will more than pay the annual debt service on the bonds. Year one is a small positive savings over and above debt service. More savings take place over the next 12 years as the university’s energy rates increase.
Efficiency improvements will include lighting upgrades, water conservation, insulation, upgraded boilers, steam system improvements, domestic solar water heating, and HVAC system replacements. Along with the efficiency improvements to the buildings, the project will feature an energy education and awareness program for students, university faculty and staff.
When the project is completed next November, UK will have a smaller carbon footprint – an annual emissions reduction of about 23,291 tons of CO2. In addition, about 13,987,779 kilowatt hours and 37,673,020 gallons of water will be saved.
Under Kentucky Revised Statute 56.774, that covers energy savings performance contracting, energy service companies guarantee that utility savings generated by facility upgrades are sufficient to pay back the capital investment over a set period (generally 11 to 12 years). If the project does not provide these returns on the investment, the ESCO is responsible for the difference.
For more information and a building-by-building work schedule, visit http://energysavings.facilities.uky.edu.