San Francisco-based Metrus Energy, Inc. announced a large-scale energy efficiency project for BAE Systems' (BA.L) New Hampshire facility to be implemented under an innovative Efficiency Services Agreement (ESA).
Metrus provides project development and asset
management services for energy efficiency projects at large commercial,
industrial and institutional facilities. The ESA structures customer repayment based on a
cost per avoided unit of realized energy savings.
BAE will pay for an efficiency retrofit through realized energy savings, freeing up capital for use in core business operations.
The retrofit is scheduled for completion in 2010, will be installed by Siemens (NYSE: SI). Bank of America (NYSE: BAC) is providing financing for the project, which is expected to result in energy savings equivalent to more than one million annual kilowatt hours (kWh).
“We’re addressing a large but vastly underserved market. Energy efficiency services, programs and financing options have largely been limited to the domain of the government and public sector,” said Bob Hinkle, CEO of Metrus. “The Energy Services Agreement specifically targets projects at private industrial and commercial facilities and in doing so, opens up what the American Council for an Energy Efficient Economy expects to be more than a $250 billion market for efficiency upgrades in the commercial & industrial sector over the next decade.”
“This is the first Pay-for-Performance project executed by Siemens where BAE Systems is only paying for the value of actual realized and verified savings,” said Joe Berkemeyer, director of financial services for Siemens. “Because of our track record of performance and our financial strength, investors can rely on our performance guarantee and offer this type of agreement to our customers.”
The California Clean Energy Fund (“CalCEF”), which promotes new business models that accelerate the growth of clean energy markets, is providing ongoing support to Metrus.