18 - Friday, December 16, 1988 - North Shore News

Taxpayers’ dollars
saved through
energy efficiency

FEDERAL GOVERNMENT
departments and agencies reduced
their energy use by 29 per cent be-
tween 1976-77 and 1986-87, in the
process of saving Canadian tax-
payers more than $1 billion.

The good news is that the sav-
ings will continue long into the
future.

Most of the energy-saving
measures instituted over the 10-
year period were undertaken with
assistance from the FEDSAVE
Energy Management Program of
Energy, Mines and Resources
Canada.

During its first 10 years, FED-
SAVE contributed $66 million in
incentives to departments and
agencies to pave the way for wise
energy management in the federal
public sector. Overall, some $270
million was spent by these
organizations on energy efficiency
projects. The result was a
cumulative cost avoidance of $1.3
billion.

Among the biggest winners was
Correctional Services Canada
(CSC), which in five years reduced
its energy consumption by 21 per
cent.

These results are even more im-
pressive when one considers that
correctional buildings generally
need greater amounts of «nergy
than other similar buildings. Secu-
rity arrangements demand high
levels of illumination in peniten-
tiaries; penitentiary buildings are
often old and spread out; and
many occupational rehabilitation
programs are high energy users.

CSC’s results are indicative of a
trend across the federal gov-
ernment.

Not content to rest on past ac-
complishments, CSC aims to fur-
ther reduce its energy consumption
by another three per cent in 1988.

While FEDSAVE’s approach
over its first decade often involved
providing the financial stimulus
for energy management projects,
the next 10 years will see the pro-
gfam adopt a new game plan.

An innovative new method of
financing energy management pro-
jects, called energy performance
contracting, is being encouraged
by FEDSAVE.

Although energy performance
contracting (also known as savings
financing) has proven successful in
numerous private sector applica-
tions (contracts worth $150 million
have been signed over the past
seven years), this approach has not
yet been tried in the public sector.

FEDSAVE hopes to have three
pilot projects under way by the fall
of 1988.

Energy performance contracting
enables energy users to implement
projects without having to allocate
any of their own resources. Overall
tesponsibility for the project is
transferred to a private sector
company known as an Energy Ser-
vice Company (ESCO).

The ESCO provides and pays
for all the services necessary to
carry out the job (design, engineer-
ing, construction, monitoring,

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maintenance and training) and is
reimbursed out of the energy sav-
ings that arise.

Several payment schemes exist
but the bottom line is that the
ESCO must produce energy sav-
ings in order to realize a return on
its investment.

To help introduce energy per-
formance contracting to the public
sector, FEDSAVE will:

© pay for the cost of a prelimi-
nary energy audit to verify the ef-
ficiency potential of specific facili-
ties;

* assist in the preparation and
review of requests for proposals
from ESCOs;

© cover contracting costs; and

© provide training.

In addition to promoting energy
performance contracting within the
federal government, FEDSAVE
will continue to offer technical ad-
visory services to clients, train fed-
eral employees with energy
management responsibilities, and
keep clients informed of the latest
developments in energy techno-
logy.

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