A Public Private Partnership (P3) is an agreement between a public and a private entity that transfers project risk to the private entity and is funded with private capital. While P3 has become a popular concept in recent years, NORESCO has developed, designed, built, financed, operated, and in some cases owned central utility plant assets through P3 and other contracting mechanisms for nearly 30 years.
P3s can be an excellent vehicle for public entities to secure long-term reliable energy supply, as with cogeneration or microgrids. It’s also an effective way to address water and wastewater operational efficiency and expense challenges, or to modernize infrastructure with LED Street Lighting and other Smart City technologies. Each NORESCO P3 project is custom-tailored to meet the entity’s infrastructure and financial needs. Examples of infrastructure that can be upgraded include, but are not limited to:
- Combined heat and power / Cogeneration
- Central heating/boiler plant
- Central cooling/chiller plant
- Central utility plant
- Renewable energy generation
- Utility distribution systems
- Building HVAC systems
- Water and wastewater facilities
- Biosolids drying and handling
- Incinerators
NORESCO offers an important combination of benefits that minimize risk to entities seeking a P3 partner for their energy infrastructure needs. A properly structured project can:
- Preserve capital expenditure
- Improve operating budget predictability
- Reduce maintenance responsibilities
- Improve resiliency and reliability
- Reduce implementation, operational and financial risk
Projects can be funded through existing operating funds, equity, debt, or a combination of these over long-term contract agreements, often for 20 years or more. Project Performance Guarantees provided by NORESCO drive-down the cost of capital.