Energy Industries Corporation of Hawaii develops an energy efficiency project that significantly reduces energy usage and uses the energy saved to pay for the project.
HONOLULU – Jan. 21, 2014 – Kuakini Medical Center will save energy and money thanks to $5.8 million comprehensive retrofit implemented by Hawaii based Energy Industries Corporation, one of the country’s largest energy efficiency integrators.
The project, which includes a new central cooling and heating plant, lighting upgrades and energy management and control systems, is scheduled for completion in September and is expected to provide 3.5 million kWh of electricity savings and 11,000 therms of natural gas savings. That translates into an expected annual savings of more than $1 million a year.
“We’re excited to deliver such impressive significant energy savings to Kuakini but knowing that the measures are paid from savings takes it to the next level,” said Duane Ashimine, President and COO of Energy Industries Corp., “In this project, the hospital will use some of the additional savings to pay for non-energy system improvements, such as an upgrade of the pumps in its fire sprinkler system. That helps Kuakini put its operating budget to medical services thus investing in providing outstanding health care services to the people of Hawaii.”
Kuakini and Energy Industries Corp., selected Metrus Energy, a San Francisco-based financing company to help funding the project’s initial costs as part of an innovative Efficiency Services Agreement (ESA), which will provide Kuakini with other benefits besides energy savings. For instance, the hospital will not have to spend the millions of dollars in upfront costs and will only pay for realized energy savings at a discount to its current utility rates and pre-negotiated rates through the term of the ESA. In addition, Energy Industries will provide the maintenance, repair and replacements for the system for the 10-year contract. Moreover, at the end of the contract, Kuakini will have the opportunity to purchase the systems at fair market value.
Energy Industries Corp., also selected Energi, a leading provider of risk management and insurance programs for the energy industry to provide insurance services for the project.
“We are excited to kick off 2014 with this project, which enables us to improve the environmental health and sustainability of our hospital,” said Quin Ogawa, Vice President of Fiscal Services and Chief Financial Officer at Kuakini Health System.
According to Ashimine, Kuakini’s ESA, which bases its fees on the performance of the system upgrades, is a breakthrough not only in the local energy industry but island businesses as well. “While performance-based contracting has been used for large state and federal projects, this is the first time in Hawaii that private-sector has been able to enjoy this type of agreement that spreads the risks and benefits among all parties involved,” said Ashimine. “The end result, is that business can focus their capital and their efforts on their core functions and that’s good for everyone.”
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About Kuakini Health System
Kuakini Health System is a nonprofit corporation that operates for charitable, research and educational purposes to support and encourage social, human, health and medical care services. Since 1900, Kuakini has been a major health care organization committed to meeting the health care needs of the community through a wide range of comprehensive acute medical and surgical services, emergency services, outpatient services, long term care and innovative geriatric care programs for the elderly, medical and health care education, and internationally renown research programs. Kuakini Medical Center is a subsidiary of the Health System. Kuakini Medical Center is a licensed, 212-bed acute care teaching hospital accredited by the Joint Commission.
About Energy Industries Corporation
Energy Industries Corporation (EIC) is one of America’s largest energy efficiency integrators. Founded in 1994 and based in Hawaii, EIC operates in Washington, Idaho, Oregon, Utah, California, Hawaii and Guam. The Company operates three divisions including Thermal, Lighting and Solar. EIC was previously named Hawaiian Electric’s Trade Ally of the Year and received seven awards from Pacific Gas and Electric for its energy efficiency work in California. For more information please visit www.energy-industries.com or www.facebook.com/energyindustries.
About Metrus Energy
Metrus Energy, Inc. is headquartered in San Francisco, California and provides capital, project development and asset management services for energy efficiency projects at large commercial, industrial and institutional facilities. Metrus offers comprehensive project financing solutions, including its innovative Efficiency Services Agreement (ESA), whereby customer repayment is based on a cost per avoided unit of realized energy savings. Visit www.metrusenergy.com and follow Metrus Energy on LinkedIn for more information.
Energi is a Peabody, Massachusetts-based industrial reinsurance company that provides specialized insurance and risk management products to targeted market segments of the North American energy industry. The core programs include fuel distribution, fuel transport, energy construction, agricultural cooperatives, renewable energy, energy efficiency, utilities and oil & gas exploration. Founded in 2005 by insurance professionals and energy industry leaders, Energi is licensed in all 50 states. For more information, visit www.energi.com.