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NORESCO, UMD Ignite $34M CHP System, Energy Efficiency Project

Energy services provider NORESCO has secured a $33.9 million guaranteed energy savings agreement with the Commonwealth of Massachusetts Division of Capital Asset Management and Maintenance (DCAM) for work at the University of Massachusetts Dartmouth (UMD). The carbon reduction of the total project is estimated at more than 20 percent of the utility-related footprint.

The two-phased project includes installation and project management, and according to DCAM, it is the largest initiative of its type executed by the organization.

The first phase contains 18 energy conservation measures to address energy and water savings opportunities and heating, ventilation and air conditioning (HVAC) infrastructure improvements.

Phase two will install a new gas turbine combined heat and power (CHP) system to replace UMD’s old, inefficient heating plant boilers.

The CHP system will produce much of the electricity needed by the campus at a more cost-effective rate than traditional power plants. The system will be located in the central plant on the campus and recover and use energy from waste heat for winter heating and summer cooling.

Beyond the savings generated directly by the project, yearly financial incentives through the Commonwealth’s Alternative Energy Portfolio Standard help support the costs for the new CHP, and both phases receive financial incentives from the local public utility company. The remainder will be paid from savings generated by the energy conservation and facility modernization measures over a 20-year period.

NORESCO is contracted to pay the difference if energy savings fall short of the guaranteed levels.

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