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SOLUTIONS. PERFORMANCE CONTRACTING
Performance Contracting is an exciting financial strategy whereby
Bay guarantees an amount of energy savings prior to an installation,
and the project is then financed from these savings. A benefit of a
Bay performance contract is that the customer's up-front capital
expenses are significantly reduced. Our installation of the Bay
ProTech compressed air control system and performance contract at a
major manufacturer's plant is an example of a very successful
project.
Bay provides Performance Contracting financial solution, saving
customer capital expenses and reducing energy costs.
Goal: Install Advanced Compressor Control System and
generate energy cost savings to offset project expense.
Bay worked with a large manufacturing company to install the
ProTech advanced compressor control system in a plant. The customer
knew the benefits of Bay's ProTech compressor controllers, but
wanted to reduce the initial capital expenditure involved with such
a project.
Bay's Solution
Performance Contracting is a financial strategy whereby a
project is financed from the expected cost savings that it will
provide. In this case, Bay guaranteed an amount of cost savings
prior to installation, and these savings then paid for the project
over a number of years. The financial risk is assumed by Bay, and
the resulting financial rewards are then shared by Bay and the
customer.
In the case of a compressed air system, Bay realizes these cost
savings by increasing the energy efficiency of the system. Bay knows
that our ProTech advanced compressor control products can reduce the
energy used by compressors using several methods:
- Precise pressure regulation allows a lower average plant
pressure setpoint.
- Distributed capacity control links compressors into a
network and then operates each compressor at its most efficient
load.
- Advanced centrifugal compressor control allows for more
efficient operation, less blowoff and reduced surge for
centrifugal compressors.
- Leak loss reduction is a byproduct of a reduced pressure
setpoint; less air escapes from existing system leaks.
- BayWatch performance tuning allows further efficiency gains
from continuous monitoring and performance analysis of a
compressor system's operation. Bay proposed an installation of
ProTech advanced compressor controls and a performance contract
to finance the project.
Project Scope
Bay measured and recorded the performance of the customer's
compressed air system. Detailed readings were taken and the existing
energy cost was determined. These recordings provided a baseline to
compare against the installed ProTech system. As part of the
performance contract, Bay guaranteed an amount of energy cost
savings. Since the project was to be financed from these savings,
both the customer and Bay agreed on the measurements and guaranteed
savings.
Bay implemented a state-of-the-art compressed air control system
for the customer's plant. Air compressors were upgraded with Bay's
ProTech control system and integrated with one another using
distributed capacity control technology. In addition to controls
standardization, the project included internet-based monitoring of
all air compressors via Bay's BayWatch service.
Results
The new energy costs were meticulously compared to the previous
costs and found to exceed those guaranteed in the contract. The
project is now proceeding as planned for in the contract, with Bay's
installation being paid for from the realized energy savings. The
length of the contract encompasses 5 years, at which point the
system will be fully paid for and owned by the customer.
The customer received a fully integrated, modern compressor
control system for little capital outlay. This was truly a win-win
solution for the customer and Bay. The customer reaped the benefits
and energy cost savings from the new system for years to come.
Performance contracting is one more service Bay provides to help our
customers with their energy solutions.
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