WESTBOROUGH, Mass., Feb. 2 /PRNewswire-FirstCall/ -- The U.S. Department of Energy (DOE) has awarded an Indefinite Delivery Indefinite Quantity Energy Savings Performance Contract (ESPC) to NORESCO, a national leader in energy-savings solutions. NORESCO, a subsidiary of Carrier Corp., a unit of United Technologies Corp. (NYSE: UTX), has been providing ESPC services to the DOE and other government agencies for more than a decade under the DOE's existing Super ESPC program.
The new multi-year contract, with a maximum value of $5 billion over its life, allows agencies to work with NORESCO to implement energy and water efficiency and renewable energy projects at federally owned facilities worldwide. NORESCO is among 16 companies awarded these ESPC contracts that could result in up to $80 billion in projects. ESPC task orders typically are placed competitively. Executive Order 13423, the Energy Policy Act of 2005, the Energy Independence and Security Act of 2007, and DOE's Transformational Energy Action Management (TEAM) Initiative encourage agencies to use ESPCs to meet their goals for energy and water reduction and renewable on-site energy generation. Goals set out in Executive Order 13423 and the requirements put forth by Congress in the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 include a 30 percent reduction in energy consumption by 2015, a 16 percent reduction in water use by 2015, and an increase in renewable energy to 7.5 percent of electricity needs by 2013 for federal facilities.
In a separate DOE announcement, U.S. DOE Secretary Samuel W. Bodman stated, "This set of awards will ensure that federal agencies have access to powerful tools for alternative financing at a scale that is needed to meet our challenge of reducing energy intensity, increasing the use of renewable energy, and decreasing water consumption."
Neil Petchers, NORESCO's president and chief executive officer, said, "NORESCO is honored to continue to support the federal government's energy-transformation initiatives. This new award enables us to continue providing substantial energy and cost savings to taxpayers, reduce our dependence on fossil fuels and foreign oil, and reduce harmful emissions and greenhouse gases. We are committed to our long-standing partnership with DOE and look forward to contributing to a very successful program."
NORESCO is one of the most successful federal ESPC contractors on record, with more than $700 million in projects awarded and implemented at federal facilities worldwide, including the DOE, U.S. Navy, Marine Corps, and Federal Bureau of Prisons. As one of the largest U.S. energy services companies, NORESCO specializes in the development, design, construction, financing, and operation of energy and environmental efficiency projects, performance contracting, and central energy plants. In addition to various U.S. government agencies, NORESCO clients include public housing agencies, school districts, universities, state and local governments, and industrial and commercial businesses. Over the past 25 years, NORESCO has implemented more than $2.5 billion in energy projects at more than 2,000 sites throughout the U.S. and abroad.
About Carrier Corp.
Carrier Corp., headquartered in Farmington, Conn., is the world's largest provider of heating, air-conditioning and refrigeration solutions. With 2008 revenues of $14.9 billion, Carrier has approximately 41,000 employees worldwide and operations in more than 170 countries. Carrier is part of United Technologies Corp., a Hartford, Connecticut-based provider of products and services to the aerospace and building systems industries worldwide. Visit www.carrier.com for more information.