$10.3M Energy Performance Contract Moves Morgan State University Closer to Master Plan Sustainability Goals
MCEC and Siemens Support MSU Efforts to Reduce Energy Consumption at Hughes Stadium and Key Campus Facilities
Morgan State University (MSU) continues to accelerate its efforts to develop and implement a comprehensive campus-wide master energy and sustainability plan. Through a partnership with the Maryland Clean Energy Center (MCEC), MSU recently closed a $10,343,339 tax-exempt Energy Performance Contract (EPC) debt financing. The financing enables Morgan to achieve related climate goals and was structured and arranged by MCEC through a Shared Energy Savings Agreement which is secured by guaranteed energy savings.
The energy savings measures to be implemented under the EPC project will be executed through agreements among MSU, MCEC, and Siemens, with measures to significantly reduce energy consumption, increase operational efficiency, and address deferred maintenance projects for several key facilities at MSU, including the central heating plant and Hughes Stadium.
“The EPC is the first step for Morgan in moving forward towards its energy and sustainable goals,” said Sidney Evans, Executive Vice President and CFO of Morgan State University. “As I have stated in the past, this partnership model is great for universities like Morgan. The partnership offers an innovative and efficient way to achieve future energy and sustainability goals. It was very important for Morgan to select the best partners to meet the future Morgan goals. Morgan is very pleased to be a partner with MCEC and Siemens!”
MCEC offers neutral third-party technical and financing capability to help partners implement energy measures efficiently, and has the capacity to facilitate procurement-as-a-service by assisting with project design, development, and financing to move institutions more quickly through the process.
“The Maryland Clean Energy Center assists municipalities, organizations, and institutions like MSU with added capacity for procurement and technical support,” said Steven Cowan, MCEC Chief Investment Officer. “As an instrumentality of the state, we are positioned to help move energy and climate change mitigation projects from inception to implementation as efficiently and affordably as possible.”
MCEC was established as a green bank to leverage private capital with public investment to help achieve clean energy and greenhouse gas mitigation goals in Maryland. To date, MCEC has completed more than $46,000,000 in energy project financings.
With a focus on helping institutions achieve their sustainability targets, Siemens Financial Services (SFS) – the financing arm of Siemens – is providing capital for this financing.
“Morgan State University illustrates that sustainability through energy efficiency is more than a passing trend; it’s a path forward to becoming the Sustainable Campus of the Future,” said Paul Hayes, President, Regional Solutions & Services, Americas for Siemens Smart Infrastructure USA. “Teaming with strong financial partners like MCEC and SFS will help ensure MSU makes the most of its recent campus modernization upgrades.”
The project model being implemented at MSU can be replicated by other institutions looking to implement a strategy to achieve campus wide sustainability goals and make capital improvements for efficient operation, health and safety of their buildings, and may be available at the K-12 level in the future.