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United States : CHEVRON ENERGY solutions on the ABC's of financing energy efficiency

June 22, 2014

Lance Weislak, the Director of International Finance at Chevron Energy Solutions, gave a talk at SVLG s Energy and Sustainability Summit on "Financing Clean Energy and Green Infrastructure."

Clean energy's "best friend is increasing energy cost." The price of electricity is going nowhere but up.

A Chevron-commissioned UC-Davis study shows electricity prices rising 4% to 6% per year. Los Angeles Department of Water and Power rates will see 8% increases.

Chevron Energy Services is an energy service company (ESCO) and calls its projects shared savings contracts.

A typical project will save 20% to 40% with "zero capital cost out of pocket."

The Chevron exec suggested the following "loading order" for financing an energy efficiency project:

Grants (Department of Energy, CEC, foundations)

Rebates and utility incentives

Low-cost financing (e.g., 0 percent CEC Loan)

Third-party financing (e.g., tax-exempt lease purchase)

Chevron Energy Services focuses on the public sector as cities don't go out of business, they face enormous funding pressures, and the private sector wants a 20% return and a fast payback.

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Source: TendersInfo (India)

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