Making Shared Energy Savings Work

Abstract

Shared energy savings (SES) is a low investment, low risk contracting procedure that can significantly increase energy efficiency at DoD installations. By decreasing installations' energy use by only 10 percent, SES can save some $300 million a year. Under SES, contractors finance and implement efficiency measures and share the resulting dollar savings with DoD. Notwithstanding its low risk and low investment, however, SES faces several obstacles: Establishing prior energy use - 'baselines' - in DoD buildings in order to measure savings is difficult since (1) very few buildings are individually metered, and (2) most energy service companies have no confidence in computer-simulated baselines; Installation managers are unwilling to implement SES without the guarantee they will receive a portion of DoD's share of savings; Uncertainties regarding the applicability of law and regulation to SES contracting are slowing implementation; The Military Departments have not agreed upon the appropriate economic criteria to be used in the competitive award of SES contracts.

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Document Details

Document Type
Technical Report
Publication Date
Jul 01, 1988
Accession Number
ADA199078

Entities

People

  • Robert W. Salthouse
  • Trevor L. Neve

Organizations

  • LMI

Tags

Communities of Interest

  • Energy and Power Technologies

DTIC Thesaurus Topics

  • Business Administration
  • Classification
  • Climate Change Adaptation
  • Computers
  • Contractors
  • Contracts
  • Economic Analysis
  • Efficiency
  • Energy Conservation
  • Energy Efficiency
  • Energy Management
  • Finance
  • Investments
  • Law
  • Management Personnel
  • Organizational Structure
  • Regression Analysis

Readers

  • Defense Financial Management and Audit.
  • Energy Conservation and Renewable Energy Engineering.
  • Marine Hydrodynamics