Source: Worcester Business Journal
Designation Creates Energy Efficiency Opportunities for World Energy in Western Massachusetts; First New Project Signed
Worcester, MA – September 23, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it has been selected by Western Massachusetts Electric Company (WMECo), an electric utility serving over 200,000 customers in Western Mass., as an approved contractor within its Project Expeditor Program. This new program is designed to help mid-size and large businesses with average monthly demand of over 300 kW reduce energy costs through the implementation of energy efficiency measures.
As a contractor within the WMECo Project Expeditor Program, World Energy is approved by the utility to provide comprehensive energy conservation measures, including lighting, energy management systems (EMS), HVAC, retro-commissioning and installing variable frequency drives (VFD), for customers throughout the WMECo service territory. The cost of these efficiency projects is being supplemented directly by WMECo, with the utility offering up to 40% percent of the total cost of qualifying lighting and mechanical retrofits.
“Winning this designation within WMECo’s new energy efficiency program is strong validation of our credentials as one of New England’s top energy efficiency firms,” said Rick Galipeau, Vice President and General Manager of Energy Efficiency at World Energy Solutions. “We expect the WMECo Project Expeditor Program to drive business growth for us in Western Mass. and have already identified several project opportunities there.”
One such project, a $350,000+ retrofit for a top boarding school, has already been signed. The comprehensive implementation will include energy efficient lighting, refrigeration, and VFD controls throughout the campus. The project is expected to be completed this fall.
Today World Energy Solutions is a preferred provider of energy efficiency services in five utility programs in Massachusetts and Connecticut: NSTAR’s Direct Install Program for small businesses; NSTAR’s Municipal Program for government entities; WMECo’s Project Expeditor Program for mid-size and large businesses; and the Small Business Energy Advantage Program for Connecticut Light & Power and The United Illuminating Company.
About World Energy Solutions, Inc.
World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. For more information, please visit www.worldenergy.com.
This press release contains forward-looking statements which involve risk and uncertainties. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “forecasts,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices, and its expectations in growth in revenue, operating results, operating margins, and free cash flow. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the forward-looking statements expressed in this press release. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.
For additional information, contact:
World Energy Solutions, Inc.
Source: World Energy Solutions, Inc.
Energy prices in New England have spiked dramatically this winter for myriad reasons. In this video, World Energy Market Director Janet Loop, a 27-year veteran of the energy industry, puts all the pieces together, offering not only reasons for the increase, but practical ways businesses can address the situation, reprising her recent blog on this costly matter.
New Mechanical and Lighting Retrofits Reduce Energy Consumption at Boston Landmark Manufacturing Operation, Provide 2-year Payback
Boston and Worcester, MA – January 23, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it has helped Boston Sand & Gravel Company, a leader in the ready mixed concrete and aggregate industries, implement two major projects to cut energy consumption at its main manufacturing and maintenance facilities in Boston. Through a series of mechanical and lighting retrofits executed by World Energy, and incentives, including a zero percent financing option, offered by NSTAR, the energy efficiency measures are anticipated to reduce energy usage by approximately 19%. The combined projects, incentives and financing provide Boston Sand & Gravel a two-year payback with no out-of-pocket expense.
Boston Sand & Gravel initially engaged World Energy to help design controls for its manufacturing process. Along with implementing process controls and variable frequency drives (VFDs), which will make the firm’s dust collectors and conveyor systems operate more efficiently, World Energy identified additional areas for energy-savings across Boston Sand & Gravel’s manufacturing, warehouse and maintenance facilities. These new measures included lighting upgrades and lighting controls, which have now been implemented. By using LED lighting fixtures across its operations, including the spotlight that illuminates its signature American flag (see images at http://bit.ly/1mi1Oj3), Boston Sand & Gravel expects to reduce lighting costs by 50-75%.
“Resource conservation and minimizing our operational impact on the environment are key tenets of our business and sustainability strategies, so teaming with World Energy on this energy efficiency initiative made great sense to us,” said Linda Charpentier, Director EHS, Boston Sand & Gravel. “Because of the demanding logistics of delivering a just-in-time product to our customers, it was great to work with a firm that could smoothly manage the project from start to finish, minimizing distractions. The World Energy team did a great job of identifying energy-savings opportunities, implementing the needed measures, and acting as our liaison with the utility to expedite the project and maximize our savings.”
Added Rick Galipeau, Vice President and General Manager of Energy Efficiency at World Energy Solutions: “Our expertise in both mechanical and lighting retrofits, as well as our extensive experience working with utilities, helps us engage with companies such as Boston Sand & Gravel in a strategic way that drives transformative results. This skill set, underscored by the growing number of successful projects we have executed on behalf of our customers, is establishing World Energy as a go-to player within NSTAR’s energy efficiency programs and across the region.”
About Boston Sand & Gravel
Established in 1914 and proudly providing a century of service, Boston Sand & Gravel Company is a leader in the ready mixed concrete and aggregate industries in southeastern New England. Boston Sand & Gravel services its customer base with ready mix concrete, aggregate, sand, with a fleet of concrete mixers, trucks and a short line railroad. We provide quality products to the most demanding construction projects throughout the region, including Central Artery/tunnel project, waste water treatment plants, nuclear power plants, high rise-buildings and slurry wall construction.
About World Energy Solutions, Inc.
World Energy Solutions, Inc. (NASDAQ: XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $40 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $2 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. For more information, please visit www.worldenergy.com.
This press release contains forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.
For additional information, contact:
World Energy Solutions, Inc.
Boston Sand & Gravel Company
Source: World Energy Solutions, Inc.
Last week I had the opportunity to present at the Massachusetts Energy Summit in Worcester, sponsored by the Worcester Business Journal. My panel, “Energy Efficiency & Alternative Energy Solutions: How to Drive Further Improvements in Your Organization” was moderated by David O’Connor of ML Strategies and was comprised of four speakers: Galen Nelson, Massachusetts Clean Energy Center; Jim McCarthy, RH White; Rob Pratt, Greener U; and myself.
I’ve been in the energy efficiency business for a long time now, and it is really great to see how many companies – of all sizes and segments – are interested in reducing their energy costs through energy efficiency measures. My fellow panelists did a great job of discussing the various incentives and programs across Massachusetts and how the natural gas boom is affecting energy prices and decisions.
Rob Pratt and I focused our attention on the evolution of energy efficiency projects. We are finding more customers being open to working with energy management firms to help develop a comprehensive energy management plan, one that looks beyond discrete retrofit projects and assesses opportunities at a facility or multi-facility level. Put another way, companies interested in energy efficiency are looking beyond “lighting only” projects with their quick, but limited, payback and are embracing broader, more strategic projects, such as HVAC replacement, that can yield more significant savings over time.
Attendees reacted very positively to this message and had some great questions for our panel. The question I found most interesting was, “What has surprised you most in the energy efficiency market?” To be honest, a lot has surprised me about this market. First is the rate of change. Advances in lighting, particularly in LED, are happening almost daily. Boilers and furnaces are becoming more and more efficient. And the great thing is that prices for these items is coming down as their efficiency increases, something really transforming the market. To that end, I continue to marvel that the pace of technological change enables us to go back to existing customers with new energy-saving tools and approaches within the span of just a few years.
Another change worth noting is the entrance of the natural gas utilities into the incentives market. In the past, energy efficiency projects and incentives were pretty much “all electricity, all the time.” Now natural gas utilities are making sizable incentives available for boiler replacements and fuel conversions.
Leaving this conference, it was clear to me that energy efficiency’s “moment” has arrived, and there is a large, eager audience ready to take it to the next level.
More photos from the Massachusetts Energy Summit are available at the WBJ’s Flickr page.
Source: Club Business International, October 2013
I was interested to see the recent Boston Globe story, “Wind Power Now Competitive With Conventional Sources,” about the purchase of 560 megawatts of wind power by MA utilities. It’s fascinating to see wind power emerging as a competitive, viable power source. Regardless of how you feel about a public utility’s role in supporting privately funded investments, these results are generally viewed as positive by those in the industry – and an affirmation that the progress of technology can rapidly approach the mainstream when the right minds are focused upon it.
I don’t doubt Elon Musk’s claim that Tesla will produce an affordable, long range electric vehicle in 3-4 years. Yet I’m not sure energy-producing technology will ever evolve at the rate of double the capacity every two years that Gordon Moore famously predicted. That said, this announcement does have me feeling optimistic about the rate of technological change in energy.
The Globe article has definitely caused a bit of buzz here at World Energy Solutions and among some of our regionally-based customers inquiring as to our view. Though we are not wind developers, we do know quite a bit about the competitive power market. While it’s easy to get excited about new developments in the energy arena, we need to keep a balanced perspective on breaking headlines. So here are a few insights that I’ve collected in the past week or two over lunch-room, water-cooler, and hallway discussions with my colleagues regarding the article’s central claim that “wind power is now competitive with conventional sources”:
1. Wind really is getting cheap(er). Turbines have a +20 year life and low operating and maintenance (“O&M”) costs. By its nature, a lot of the expense of wind generation is the upfront capital required to install and operate the turbines. Operating them long term, the cost to produce the marginal kWh goes close to $0 (save for maintenance). Digging into the financials, a good rule of thumb used for the cost, in $/MW, to buy and install a generating unit on a utility scale is $2 million per MW. It might produce about 3 million kWh/year, conservatively speaking. Assuming $0.08 per kWh (cited in the Globe article) and that a turbine spins 30% of the time (another rule of thumb), that comes to about a 9.5 year simple payback, without O&M. I’ve seen estimates for O&M of about 2% per year, so, again on a simple basis, most of the production after 10 years is profit (ignoring development/siting costs, capital costs, regulatory hurdles, etc.).
The footnote to all this, of course, is that it is a leap of faith that these units will operate as spec’d 20 years from now.
2. Creative pricing plans may be at play. I could not readily access the proposed Power Purchase Agreements, as they were redacted as public documents. However, these are long term contracts,15-20 years in length. It is likely that the average prices are heavily biased toward higher rates in the near term, and cheaper rates in the longer term.
3. It’s not apples to apples power. Now let’s take a look at the demand side of the price equation. At the risk of over-dramatizing it, if I buy a plane ticket to England on Priceline and let them pick my travel dates and times, I might pay $400. If I want to go there on my terms, specifying a time and date, I might pay $1200. Same ticket, different value. Same thing going on here. There should be a pretty sizable discount in this price for the fact that this power does not have much buyer optionality in it – the utility buys it whenever it is produced. There is a good chance that it is not produced at the peak pricing times of the market (when it’s windy, it’s relatively cooler). But regardless, that is a risk that a buyer takes, which commands a discount – in addition to the consideration of the expected value of it when it is produced. Put another way (making up numbers here), a buyer might estimate the prevailing market price of power when the wind blows to be $0.06, when the round the clock average might be $0.08. Conversely, that’s in some part why solar commands a higher price. The hottest days are the sunniest, as well as the coldest days, at least in the Northeast.
4. Subsidies are likely involved. Last but not least, there is a federal production tax credit on this power of $0.023, generally applying to the first 10 years of generation. This credit certainly helps swing the economics of the power to a more competitive arena.
So at the end of the day, what does this all mean? The fact that Massachusetts utilities have made a major purchase of wind power is great news for the wind-power industry and for supporters of renewable energy. On the question of whether this deal proves that wind power is now competitive with conventional energy sources, I think we’ll need to wait and see.
Lots in the news these days about the traction – and funding – energy efficiency programs are gaining in the Northeast and across the country. Just last week Lawrence Berkeley National Labs published a report on an anticipated increase in energy efficiency programs funded by electric and natural gas utility customers, a dramatic doubling to nearly $9.5 billion by 2025.
This builds on the findings of a December 2012 report by New England ISO forecasting that the six New England States will spend $5.7 billion on energy efficiency measures between 2015-2012, with spending in Massachusetts increasing more than 5x from the 2008-2010 period, and in Connecticut by more than 2x from 2009-2011. These jaw-dropping figures are part of a macro-shift in the energy industry that some argue will slow power demand growth.
That said, in discussions involving 10-figure energy efficiency initiatives, it can be easy to lose sight of the individual success stories that are enabled by these programs. Healthtrax Fitness & Wellness, a fitness center operator with locations in 8 states, including CT, MA, MD, NJ and RI, shows how much small and medium-sized businesses stand to gain by participating in these burgeoning programs and taking advantage of energy management strategies and solutions that were once the sole province of larger companies.
Through better energy procurement, mechanical and lighting retrofits, energy management systems and knowledge of relevant utility programs, World Energy Solutions was able to help Healthtrax lower the price it pays per kWh of electricity, decrease the amount of energy it consumes, AND get the most incentive dollars it could from their respective utilities. The results were striking — $1M+ in savings with minimal out-of-pocket expense, a combination that made an immediate impact to Healthtrax’s bottom line.
The projected growth of energy efficiency programs well into the future signals that efforts to reduce energy consumption are here to stay. It also marks an opportunity for more small businesses to join with Healthtrax and others in adopting energy management strategies to advance their business.
Source: Environmental Leader