Fall River and Ameresco Partner on Renewable Energy Project as Part of Mayor's Green Energy Initiatives
Project includes an ESPC, PPA, solar panel installation, and energy efficiency measures that will help reduce the City’s energy costs and carbon emissions
Fall River – June 14, 2011 – Fall River Mayor Will Flanagan and officials from Ameresco, Inc. (NYSE:AMRC) today announced the first phase of a multi-phase energy efficiency initiative and a renewable energy project that are expected to save the City more than $2.7 million in energy savings over the life of the contact and reduce its carbon footprint by 25.8 million pounds of carbon dioxide; the equivalent of removing 1306 cars from the road.
The Energy Savings Performance Contract (ESPC) with Ameresco, which also incorporates a $650,000 federal grant, will enable the installation of more than 3,400 efficient light fixtures in two City schools and the Government Center with no capital cost contribution from the City’s budget. Upgrading the lighting will not only save energy, but also result in annual maintenance savings since the installation of new lamps and ballasts will greatly reduce service intervals. The new lighting system is designed to maintain or improve lighting levels in designated areas. It will also result in a smaller connected electrical load. To enhance the lighting system improvement project, Ameresco has included ceiling replacements for certain portions of Government Center, as well.
An ESPC is a budget-neutral way to reduce energy use and associated costs, and renew facilities and building systems without burdening shrinking capital budgets. Ameresco will guarantee a minimum level of energy savings over the term of the contract and that the cash inflows from the project will exceed the cash requirements for the project, offsetting the costs of these improvements.
Additionally, under a Power Purchase Agreement (PPA) with the City, Ameresco will design, finance, install, own, and operate four solar Photovoltaic (PV) electricity generating systems on three Fall River schools and outside the City’s wastewater treatment plant. The PPA provides a no capital-cost approach for the City to utilize renewable energy. It also provides the City a cost effective source of electricity verses the cost of electricity from the utility grid. The electricity price is fixed and is expected to provide a predictable source of low cost electricity. Budget costs should be more stable and avoid commodity electricity price spikes or utility distribution price inflation. Predictable budgets enable the City to plan annual budgets without sudden surprises that affect city services and school budgets.
“These types of agreements benefit the City of Fall River, as well as our environment,” said Fall River Mayor Will Flanagan. “Not only will this deal help us become more energy efficient today, but it will save the City money over next two decades. My administration will continue to work with companies like Ameresco to find ways to make our government run more efficiently into the future.”
“We congratulate the City of Fall River for its leadership in embracing energy efficiency measures and advanced sustainability practices, “said David J. Anderson, Executive Vice President, Ameresco. “Not only do the ESPC and PPA help the City financially and with its sustainable practices, but with the installation of solar PV systems, students and educators throughout the City will have the opportunity to learn about renewable energy first-hand, as this technology will be incorporated into the School District’s science curriculum.”
Ameresco designed and will build four photovoltaic systems for the City at: the Water Treatment Plant, the Edmund P. Talbot Middle School, the Frank M. Silvia Elementary School, and the New Mathew J. Kuss Middle School. The Water Treatment Plant system is rated 109 kW; the Frank M. Silvia Elementary School system is 73 kW; the New Mathew J. Kuss Middle School system is 161 kW; and the Edmund P. Talbot Middle School system is rated 227 kW. The combination of all the systems consists of 2,624 solar modules for a total rating of 570 kW when fully operational. The City of Fall River will buy the power at a lower rate than it currently pays for electricity, and the rate will be locked in for 20 years.
About Ameresco, Inc.
Ameresco, Inc. was incorporated in Delaware in April 2000 and is a leading independent provider of comprehensive energy efficiency and renewable energy solutions for facilities throughout North America. Ameresco’s solutions include upgrades to a facility’s energy infrastructure, and the development, construction, and operation of renewable energy plants. With corporate headquarters located in Framingham, MA, Ameresco has 56 offices in 29 states and five Canadian provinces. For more information, visit www.ameresco.com.