Portland, Maine, contracts with Ameresco for 45 new energy projects

Portland, Maine, contracts with Ameresco for 45 new energy projectsYesterday, Ameresco, Inc. (NYSE: AMRC) said it won a contract with Portland, Maine for $9.4 million in solar and energy efficiency projects that will save the city nearly $17 million over 15 years. The overwhelming majority of projects are energy efficiency projects, but also included two solar projects at local schools.

The city will incur no upfront costs for the projects, according to Ameresco spokesperson CarolAnn Hibbard. The projects are instead financed through energy savings that Portland will pay Ameresco. Hibbard said the company would not disclose how long it will take to complete all of the projects. But, “It’s in our best interest [to do them quickly] for sure,” she said.

As part of the Ameresco awards, the city will install a 2 kilowatt photovoltaic array at the Portland Arts and Technology High School and a solar hot water heating system at Reiche Community School that will be used to heat its indoor pool. The installation at Reiche will work in conjunction with the school’s heating system to heat the pool water, said Hibbard.

The city is interested in more solar, but couldn’t fit it into the constraints of this series of projects.

“It’s the payback period. The photovoltaic panel has a 63-year payback. The hot water installation has a 20 to 21 year payback. Both projects exceed life of the equipment,” said Ian Houseal, Portland ‘s sustainability coordinator. “There were only two projects that we considered outside of payback period. We used a strict payback period otherwise.”

The photovoltaic installation is pretty small for a school.

“We see it as more of an educational installation. There will be a kiosk installed in the hallway to see what the panel is generating,” Houseal said. The installation includes a laptop charging station.

Looking forward, Portland wants to install more solar.

“We’re always interested in power-purchase agreements [i.e. PPA] for solar installations. We haven’t made that work yet,” Houseal said. “The incentives aren’t there. Nor do we have the solar resources on our buildings to get a payback that doesn’t exceed the life of the products.”

Companies have done site evaluations for PPA-based solar installations, but none have been able to make an acceptable proposal.

“A PPA would be the best for us because it wouldn't involve maintenance,” Houseal said. Installers of such a system could also qualify for tax incentives that the city isn’t eligible for.

Image courtesy of the Black Point Inn, a Portland Hotel.