gsa’s use of energy auctions. energy center of expertise overview federal energy purchasing 101...
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GSA’s use of Energy Auctions
Energy Center of ExpertiseOverview
Federal Energy Purchasing 101
GSA Reverse Energy Auctions
GSA Forward Auctions
GSA Region 2 Renewable Auctions
Energy Center of ExpertiseFederal Power Purchasing 101
Federal energy procurements tend to be complex based on:
• Federal contract terms and conditions (FAR, etc)• Regional / national market differences• Differing load factors• The number of decision makers involved• Facility Specifics (Cogeneration, efficiency projects)• Price and service preferences• Renewable power procurement in relation to
EPAct and LEED Certification• Depending on the market, GSA buys Renewable Energy
Credits (RECs) either through stand-alone or bundled purchases
• GSA Regions 1, 2 and 5 purchase RECs primarily through bundled purchases (all have deregulated electricity markets)
• In total, Federal agencies in these regions have purchased over 1.2 million RECs through reverse auctions led by GSA’s Energy Division
Energy Center of ExpertiseGSA’s use of Reverse Auctions
As of FY13, the GSA Energy Division uses reverse energy auctions to purchase the following requirements:
Natural Gas• 335 Federal accounts in 35 states• $109 million in annual spend• Contracts serve 29 Federal agencies• 19 suppliers with active contracts• 23% of contracts with small businesses
•Electricity•356 Federal accounts in 9 states• $84 million in annual spend•Contracts serve 17 Federal agencies• 20% renewable on average
Energy Center of ExpertiseGSA Forward Auctions
Included GSA and Veterans Administration facilities in Chicago and New York
Accounts had previously been enrolled in demand response programs under provider’s terms and conditions and received 75% of revenues
The GSA Energy Division (PBS) received 79 bids from 10 approved demand response providers in one hour of auctions
New revenue split for GSA and VA is 91.8% under GSA’s contract terms and conditions which shift costs and performance risk to providers
Total revenues for GSA & VA = $1.5 million over 3 years which can be reinvested in further energy reduction projects and initiatives
The GSA Energy Division ran the first Federal forward auction for
demand response services on Jan 26th, 2012
Energy Center of ExpertiseGSA Region 2 Highlights
Region 2 purchases renewable power for seven Federal agencies located in New York and New Jersey through reverse auctions
Region 2 ranks #5 on the EPA’s Green Power Partnership list of the largest Federal government organizations purchasing renewable power
As of April 2012, renewable power accounts for 43% of GSA Region 2’s electricity usage
Current contracts will deliver renewable power through 2016
Through GSA’s November 2011 reverse auction, participating agencies purchased an average of 22% renewable power while reducing energy spend by $35 million comparing old contract rates to the new rates
Energy Center of ExpertiseGSA Region 2 Green Awards
GSA Region 2 has received numerous awards for renewable power purchases including the 2003 White House Closing the Circle Award.
These awards have been in conjunction with buying renewable power through reverse auctions for it’s own facilities needs as well as other agencies including 100% renewable power for the National Park Service’s Statue of Liberty and Ellis Island Accounts
Energy Center of ExpertisePoints of Contact
Brian MagdenGSA Region 2 Energy Coordinator(212) [email protected]
Chris McCall, CEPSAIC(703) [email protected]