Contract is First Siemens US Army Energy Savings Performance Contract Financed in Euros
Siemens has received its first Energy Savings Performance Contract (ESPC) – financed in Euros – to help the U.S. government save energy and lower its associated costs overseas.
Siemens and the US Army Corp of Engineers signed a €7.9 million (~$9.4 million USD) contract to install, operate and maintain several energy conservation measures at the U.S. Army’s Installation Management Command (IMCOM) headquarters in Wiesbaden, Germany, 23 miles from Frankfurt. The measures include installation of a combined heat and power (CHP) plant, heating distribution plant improvements, multiple solar photovoltaic power arrays, and upgrading lighting to new, light-emitting diode or LED technology.
US Army Garrison (USAG) Wiesbaden, which is headquartered at Lucius D. Clay Kaserne, services 15 installations and housing areas as well as several enclaves in and around Wiesbaden. The city of Wiesbaden also serves host to several other U.S. military tenants including: U.S. Army Europe Headquarters, 5th Signal Command, 66th Military Intelligence Group, 1st Air Support Operations Group, 1st Battalion, 214th Aviation Regiment, 485th Intelligence Squadron and the 7th Weather Squadron.
Under this contract, Siemens will install a CHP system, high-efficiency boilers and an integrated building management system (IBMS) at the Wiesbaden Garrison. The Siemens Desigo CC IBMS links the central hot water facility including boilers and CHP with the variable flow heating hot water pumping system optimizing distribution while producing low cost electricity.
The modifications will save more than 6 trillion British Thermal Units over the 21-year performance period and serve as a foundation for energy security. The lighting upgrades will account for an additional 51% energy savings over current lighting costs.
Siemens Government Technologies, Inc. and a team of experts from the Frankfurt Siemens office for Energy Efficiency will implement this work through an ESPC financed completely in Euros by DZ Bank and United Financial of Illinois, representing the first time SGT has leveraged the European currency to finance a U.S federal project. ESPCs provide an alternative financial mechanism which allows federal agencies to reduce their energy intensity and costs by accelerating investment in effective energy conservation measures while incurring no capital costs. USAG Wiesbaden’s €7.9 million investment in energy conservation measures, as well as the operations and maintenance of the conservation measures for the project term, is funded by the €18.0 million in guaranteed energy savings.
“Siemens is proud to once again be chosen by the U.S. Army to help strengthen our nation’s energy infrastructure, efficiency and security at a strategic federal government location outside the U.S. The U.S. Army continues to lean forward in using flexible financing arrangements such as ESPCs to save energy – and taxpayer dollars,” said Barbara Humpton, president and CEO of Siemens Government Technologies, Inc.
In terms of dollars, this project, combined with other U.S. Army ESPC projects already in place in Germany, will result in over $46 million in savings to the U.S. federal government.
Siemens Corporation is a US subsidiary of Siemens AG, a global powerhouse focusing on the areas of electrification, automation and digitalization. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of systems for power generation and transmission as well as medical diagnosis.
Siemens Government Technologies, Inc. is a federally-compliant U.S. organization structured to help the federal government address national imperatives in energy, infrastructure, automation and marine platforms. SGT is the leading integrator for Siemens’ innovative products, technologies and services to meet the needs of federal customers.
The Siemens Building Technologies Division (Buffalo Grove, Ill.) is the North American market leader for safe and secure, energy-efficient and environment-friendly buildings and infrastructures. As a technology partner, service provider, system integrator and product vendor, Siemens Building Technologies has offerings for fire protection, life safety and security as well as building automation, heating, ventilation and air conditioning (HVAC), and energy management. To learn more about the Siemens Building Technologies Division, visit www.usa.siemens.com/buildingtechnologies.