ESPC Project Information
The University of Louisville’s Energy Savings Performance Contracting Project is a partnership between the University of Louisville and the Building Technologies Division of Siemens Industry, Inc. The project was designed to promote long term sustainability, reduce the University of Louisville’s impact on the environment, and to dramatically reduce the University’s utility costs. An overview of the project's financial benefits is presented below.
Phase 1 Belknap Campus Financial Approach
- $21.7 million dollar performance contract - one of the larger in the region
- Funded through guaranteed energy savings over a 13.5 year contract term
- Will not require additional taxpayer dollars
- Will reduce Belknap Campus' 8.4 million dollar annual budget by more than 26%
- Savings are guaranteed to be 2.3 million annually, or $6,400 per day
- If the guarantee is not met, Siemens will pay to cover the shortfall
- Implementation began on October 2009 and is expected to last 14 months
- A similar project is under development for the Health Science Center
If the savings guarantee is not met, Siemens will pay to cover any shortfall. This guarantees that the University of Louisville will reduce its utility consumption while virtually eliminating risk.