Veterans Affairs to Save $880,000 Per Year After Energy Upgrades

September 8, 2014 By Linda Hardesty

ESG energy manageEnergy Systems Group has been awarded a $7.8 million Energy Savings Performance Contract (ESPC) by the US Department of Veterans Affairs to implement an energy savings program at the Veterans Affairs Palo Alto Health Care System (VAPAHCS).

The VAPAHCS operates nearly 900 beds, including three nursing homes.

This ESPC program will provide the VAPAHCS with two new 1,055-ton high-efficiency chiller units to replace outdated equipment in the hospital and clinics chiller plant; nearly 9,000 energy efficient light-emitting diode (LED) lamps across most of the campus; nearly 600 wirelessly-monitored LED emergency exit signs; more than 500 occupancy and daylight sensors to maximize energy savings; and energy-saving improvements to the campus steam distribution system.

Energy Systems Group will provide the necessary program management, design and construction services, training, operations and maintenance services, performance monitoring and verification, equipment repair and replacement, and arrangement of financial services to meet the needs of this project.

The program will reduce annual energy consumption at the VAPAHCS by a total of 23,289 million British Thermal Units (Btus) per year, including nearly 6 million kWh of electricity and 3,750 million Btus of natural gas. This reduced energy consumption will result in about $880,000 of savings annually.

The project will be financed through a private-sector firm and backed by ESG’s energy savings guarantee.

This project marks ESG’s first federal ESPC contract since its acquisition of Chevron Energy Solutions’ federal sector energy services unit, in April 2014. ESG is now one of 16 approved Super ESPC contractors that have been awarded indefinite-delivery, indefinite-quantity US Department of Energy ESPCs.

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