Hawai‘i tops nation in energy savings investments

LIHU‘E — The Energy Services Coalition placed Hawai‘i at the top of a nationwide ranking for investment in energy savings performance contracting for public buildings per capita, according to a press release Wednesday from the state Department of Business, Economic Development and Tourism.

Hawai‘i’s overall conservation investment exceeds $150 million, the department states. On Kaua’i, as on other islands, performance contracts date back at least 15 years.

“This is exactly the type of investment that will propel the State of Hawai‘i toward our goal of 70 percent clean energy by 2030,” Gov. Neil Abercrombie said.

 “Energy savings performance contracting (ESPC) projects combined with other ambitious clean energy programs — such as the aggressive expansion of photovoltaic use at public school facilities — will further our state’s energy independence and provide a strong catalyst for job growth.”

ESPC project uses guaranteed future energy and water utility bill savings to pay for the up-front capital costs of facility improvements. In Hawai‘i, the state Energy Office has been providing technical assistance on performance contracting to state agencies and  counties, upon request, since 1996.

The Energy Services Coalition is a national nonprofit network working at state and local levels to increase energy efficiency through building upgrades.

County of Kaua‘i

On Kaua‘i, county spokeswoman Beth Tokioka said the county entered its first performance contract in 1996 with Honeywell as the energy services company.

The county received a lighting retrofit for the county’s building division that cost approximately $639,910 and generated energy and operational savings of approximately $761,618, she said.

A portion of the savings, she said, was used for an energy management system for the Lihu‘e Civic Center.

More recently, in June, the county Office of Economic Development entered into a performance contract with Chevron Energy, covering facilities and equipment utilized by the Wastewater Division of the county Department of Public Works, Tokioka said.

“Chevron is currently in the Investment Grade Audit phase, which means that they are researching the possibilities for energy efficiency and other measures that could be taken to save energy and money over time,” she said. “At some point, they will make recommendations about what measures to pursue, and what the cost will be.”

The whole idea of the performance contract, Tokioka said, is for the energy savings to pay for the investment. The energy savings company guarantees that, so there is either a net zero investment or a savings over time, she said.

But there’s more to come.

“A second performance contract will be issued shortly which will cover facilities and equipment managed by the Department of Public Works Building Division and the Department of Parks and Recreation,” Tokioka said, adding that the contract has not been put out to bid yet, although the same process will apply.

“The audit will take place first to identify the up-front costs and savings over time,” she said.

In addition to the performance contracts, the county is also moving forward with a photovoltaic retrofit at the Kaiakea Fire Station in Kealia and with other energy efficiency components at the Historic County Building in Lihu‘e to make these facilities more energy efficient, Tokioka said.