NORESCO Implementing $97 Million Energy Savings Performance Contract for U.S. Department of Veterans Affairs


NORESCO, a national leader in energy efficiency and infrastructure solutions, is implementing $97 million in building system upgrades at the VA Great Lakes Health Care System, part of the U.S. Department of Veterans Affairs. Also known as Veterans Integrated Service Network (VISN) 12, the health care system provides services to more than 700,000 veterans in Illinois, Wisconsin, Michigan’s Upper Peninsula and Northwest Indiana. The guaranteed energy savings performance contract (ESPC) includes energy and water efficiency and facility improvements at six sites. NORESCO is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp. (NYSE: UTX).

This ESPC project will help the VA make substantial progress toward meeting energy and water reduction goals, 16 percent and 28 percent, respectively, resulting in more than $156 million in cost savings that will be achieved over the course of the contract, with no upfront capital investment by the U.S. government. Improving aging infrastructure provides better health care environments for veterans, their families and staff members.

"Comfortable conditions for patients, families and healthcare staff are integral to the healing environment," said Natasha Shah, vice president, NORESCO. "When we pair building solutions and energy efficiency, it allows the VA to address its mission and reduce energy use at the same time. A key aspect of ESPC is improving infrastructure.”

Infrastructure improvements that will be accomplished at VISN 12 under this project include a new chiller plant, upgrades to building automation systems, heating, ventilation and air conditioning system improvements, a comprehensive steam trap maintenance program, and lighting and domestic water system improvements. The ESPC project will also eliminate the introduction of more than 65 million pounds of emissions into the atmosphere annually, equivalent to removing 6,722 cars from the road.

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As one of the largest energy service companies in the United States, NORESCO uses design/build, performance-based contracting vehicles and asset monetization solutions to deliver energy and maintenance savings and significant infrastructure upgrades to existing facilities. NORESCO has guaranteed more than $3 billion in energy and operating cost savings at more than 7,000 facilities throughout the United States and abroad. NORESCO also offers a full suite of consulting services to integrate sustainable design strategies into new construction and existing buildings. NORESCO is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp., a leading provider to the aerospace and building systems industries worldwide. For more information, visit