Constellation Energy (NYSE: CEG) signed a first-of-its-kind federal contract with the State Department to provide solar and wind energy to the US government.
The long-term power purchase agreement with Constellation will provide about 120,000 megawatt hours (MWh) of clean energy annually to federal government facilities.
The agreement, which is expected to be cost-neutral, will allow the State Department to reduce its greenhouse gas emissions by 30-35% compared to FY2008 by December 2012, far surpassing its goal of 20% by 2020.
The energy will come from a $50 million solar project Constellation is planning for 40 acres in New Jersey. UNICOR, a federal prison industries service will build the panels – the project should be complete by mid-2012.
UNICOR was established in 1934 to provide job skills training to inmates and produce market-priced goods for the federal government.
Constellation will also purchase power from a Pennsylvania wind plant under a long-term power purchase agreement. And it will buy certified Green-e Energy from renewable energy facilities across the US.
"This innovative agreement serves as a model for federal agency energy management with a cost-effective, public-private effort that will create jobs through the development of clean energy resources," says Mayo Shattuck, chairman and CEO of Constellation Energy.
The State Department put out a competitive request for proposals last fall for innovative solutions to meet its clean-energy objectives.
Constellation Energy serves over 150 federal agency and institutional customers with electricity and natural gas, including over 375,000 renewable energy credits, 1.7 decatherms of natural gas and approximately 6.9 million MWh of electricity to the U.S. Capitol, Kennedy Center, Smithsonian Institution, FBI and Federal Reserve, among many others.
Constellation is a federally approved demand response provider services for military and civilian government agencies, enabling eligible federal sites to earn money by shedding load during times of peak energy demand. The company is also one of seven National Super Energy Savings Performance Contract (ESPC) suppliers chosen by the U.S. Department of Energy to improve the efficiency of federal buildings through energy retrofit projects, energy saving performance contracts and deployment of renewable energy systems.
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This is great to hear. Tom, thanks for the green hook up. PS: I recycle!
“The company is also one of seven National Super Energy Savings Performance Contract (ESPC) suppliers chosen by the U.S. Department of Energy to improve the efficiency of federal buildings through energy retrofit projects, energy saving performance contracts and deployment of renewable energy systems,” this is incorrect. There are 16 ‘Super’ ESCOs (energy service companies, not seven. These ESCOs have been qualified (not choosen) by the U.S. Department of Energy for the design, development and implementation of energy conservation projects through energy savings performance contracts (ESPC).