Energi, a leading provider of risk management and insurance programs for the energy industry, announced it will provide coverage for energy efficiency retrofits at the Kuakini Medical Center in Honolulu, Hawai’i. Metrus Energy, an efficiency services financer, will finance and implement $5.8 million in energy upgrades at the medical center, including a new central cooling and heating plant, lighting upgrades and energy management and controls system.
“Acceptable risk is the biggest obstacle to financing every efficiency project,” said Bob Hinkle, Metrus Energy President and CEO. “Energi’s Energy Savings Warranty was a key part of guaranteeing this project’s performance and unlocking Metrus’ largest deal to date—all with no upfront cost to Kuakini. With risk mitigation from Energi’s warranty, Metrus can continue to deepen its project pipeline and add to our ESA portfolio which stretches from New Hampshire to Hawai’i.”
Metrus will fund initial costs to construct, maintain and monitor the energy-saving improvements through its Efficiency Services Agreement. Kuakini will pay Metrus for realized energy savings once the project becomes operational. Upon completion in September, Kuakini will achieve annual cost savings of more than $1 million. Metrus has partnered with Energy Industries Corporation for project installation and ongoing maintenance, and New Resource Bank as their debt financier. Energi’s Energy Savings Warranty (ESW) will backstop the project performance guarantee offered by Energy Industries to Metrus.
“Hawai’i is an emerging leader in renewable energy, and more projects like Kuakini will help to make us a leader in energy efficiency as well,” said Duane Ashimine, President and COO of Energy Industries Corporation.
“The size and scope of the Kuakini retrofits attest to the power of combining the expertise of an established energy efficiency company with the credibility of a national partner like Metrus. Energi’s ESW program validated and guaranteed our energy savings with Metrus and put this project on the fast track.”
“Kuakini will be our first time using Energi’s ESW, and we view this enhancement as a critical component of the financing structure,” said Bill Peterson, Executive Vice President at New Resource Bank. “The warranty significantly lowers the risk of default, which benefits all project parties.”
Energi’s Energy Savings Warranty (ESW) program is written through the International Insurance Company of Hannover. The ESW program allows for project stakeholders to confidently and efficiently underwrite project revenue by assessing the underlying project guarantee and insurance providers’ financial stability.
“For efficiency to transform the market, we need more large projects to be developed—and not be limited by the number of large contractors and financiers,” said Kevin Kaminski, Energi’s Senior Vice President of Alternative Energy Solutions. “Since we created ESW, it has been a critical—and often, necessary—tool for small to mid-size energy efficiency contractors looking to finance large projects. The added security of our financial strength, and third-party verification of the engineering work and contractual language, provides a backstop that many financial institutions view as a critical component of the project’s bankability.”
Source: Business Wire