Eastern Shore Green Energy
Workshop
Energy Performance Contracting
for the
Maryland Eastern Shore
Siemens Presenter:
Mark J. Eliser, PE
Restricted © Siemens AG 2013 All rights reserved.
Hosted by:
usa.siemens.com/infrastructure-cities
Performance Contracting (PC) Concept
Provides self-funded facility & infrastructure improvements
Reduces energy consumption, commodity cost, and
operating expenses
Can increase revenue (i.e. water, wastewater, wifi service)
Generat e
Savings and revenue increases fund these improvements
Savings
Improvement s
Modernization
Optimization
Energy Management
Success
Guaran t ee
Finance
Energy Usage
Operation
Energy Supply
Utility rebates/incentives can be applied to this program
Capital $ contributions can supplement funding, stretching
capital budgets
Siemens financially guarantees savings during contract
PC has been an accepted means of procurement in the U.S.
for Public and Private entities for the past 40+ years
Markets: Public and Private Facilities; Municipal and Federal,
K12 Schools, Higher Ed, Industrial, Commercial, Healthcare
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Understanding the PC Cash Flow
Before Program Term
Operating Budget
Operating
Funds
Costs
- Utilities
-O&M
- Repair / Replace
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Siemens Industry, Inc
Understanding the PC Cash Flow
Before Program Term
During Program Term
Operating Budget
Operating Budget
Operating
Funds
Operating
Funds
Costs
- Utilities
-O&M
- Repair / Replace
Costs
- Utilities
-O&M
Investment
- Repair / Replace - Modernization
- Energy Retrofits
- Upgrades
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Siemens Industry, Inc
Understanding the PC Cash Flow
Before Program Term
During Program Term
After Program Term
Operating Budget
Operating Budget
Operating Budget
Operating
Funds
Operating
Funds
Operating
Funds
Costs
- Utilities
-O&M
- Repair / Replace
Costs
- Utilities
-O&M
Investment
- Repair / Replace - Modernization
- Energy Retrofits
- Upgrades
Costs
- Utilities
Investment
-O&M
- Repair / Replace - Modernization
- Energy Retrofits
-Upgrades
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Siemens Industry, Inc
Performance Contracting Process:
Project Savings Sources
Maint. & Op’s Budget
Capital Budget
Cost
Savings
Avoidance
Utility Budget
Existing Revenue
Savings
Revenue
Increases
Annual Funding for
Performance Contract Project
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Siemens Industry, Inc
Performance Contracting Process:
Funding Cash Flow
Achieve your Objectives by Funding Improvements through Savings
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Typical Facility Improvement and Upgrade Measures…
HVAC Equipment
Interior Lighting
Indoor Air Quality (IAQ)
Building Controls
Security, Fire & Life Safety
Waste Management

Water Conservation
Building Envelope (Roofs,
Windows, Doors, Walls, etc.)
Technology Infrastructure
Behavior Modification
Street Lighting
Municipal Water Meters
Wastewater Co-Digestion
Landfill Gas
CNG Conversions
Solar
Wind
Geo Thermal
“Green” Measures
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Performance Contracting Procurement Process
Municipality
Agreement
to Proceed
Memorandum of
Understanding
(MOU)
Preliminary
Phase
Detailed
analysis
Prelim.
Site
Audit
Prelim.
Proposal
Detailed Project
Development
PC Contract and
Funding
Implementation
Planning, Procurement,
Installation, Project
Mgmt.
Energy and Operational
Savings
Guarantee
Phase
Energy savings
guarantee, measurement
and verification
Siemens Industry, Inc.
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Page 9
11-7--2014
Siemens Industry, Inc
Siemens – Globally/Nationally
Business Sectors:
• Energy, Industry, Infrastructure &
Cities, Healthcare.
Global Business 2012:
• 402,000 Employees, Order Intake $85.5B, Revenue $73.5B
• Patents 13,303
Revenue by Sector
Infrastructure
and Cities
Healthcare
17%
35%
Energy
22%
26%
USA Business 2013:
• 57,000 Employees, Order Intake $20B, Revenue $22B
Industry
• Over 100 Years in the Business of Energy and Technology
Based on total sector revenue, first half of FY 2012
• 83% of Siemens’ Business
segments are directly related to the
project content anticipated in this
program.
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Siemens Industry, Inc
Siemens – Global Technology Delivered Locally
Renewable
Energy
Power Transmission
& Distribution
Smart Grid
Solar Energy
Alternative drive
system
(Hybridbus)
Harbor
Power Generation
Water & Waste Water
Smart Buildings
Electricity savings
E-mobility
Traffic Management
Efficient lighting
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Siemens Industry, Inc
Siemens Industry, Inc. - Locally
Siemens Industry, Inc Performance Contracting Track
Record:
18 year continuous Performance Contracting Business
More than $2.0 billion in guaranteed energy and operational
savings over the past 10 years.
Local Siemens Branches:
 Baltimore
 Beltsville
 Virginia Beach
Implemented more than 1,000 Guaranteed Performancebased Solutions projects for our customers.
Negotiated more than $3B in energy supply-side contracts.
Guarantee shortfall payments less than one-half of one
percent of gross guarantees.
Over 687 employees in the MD, VA,
& DC area with full service
capabilities
One of the Industry's Highest Customer Loyalty Ratings,
based upon independent surveys.
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Siemens Industry, Inc
A Few Siemens Accreditations
We are a corporate member of the
U.S. Green Buildings Council.
We are on the U.S. Department of Energy
(DOE) Qualified List for the Federal
Energy Management Program.
We are a Strategic Business
Partner to the U.S. Department of
Energy Rebuild America Program
We are an Energy Star Energy Services
Provider and received the 2003 Partner of
the year award.
Siemens Industry, Inc is
NAESCO Accredited as an
Energy Services Provider, the
fullest obtainable level within
NAESCO.
We are a member of the Clinton Climate Initiative C40 Large Building Retrofit
Program.
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Q&A
Thank You
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