The strategic partnership between Siemens and Pilkington is clearly highlighted by an industry-leading energy performance contract – an innovative and tailored investment funding package put in place by Siemens Financial Services. This agreement works for all concerned, so that risk is shared.
The principle is simple: Siemens Financial Services funds the initial capex required for the projects, which have typical three year payback periods in terms of generated energy savings. If the agreed energy performance enhancements are achieved or even exceeded, Pilkington pays a monthly charge equal to the savings reaped from its reduced energy consumption.
Following a series of in-depth energy audits that the Siemens and Pilkington engineering teams had carried out, an initial list of ten energy management projects was identified. These projects included the installation of new drive technologies and automation controls at a Scottish production site, new pump system upgrades, and a major program to install an intelligent lighting solution at one of the company’s prime warehousing locations.
The crucial thing is that Pilkington did not have to make any up-front capex investment to benefit from these technical solutions, but pays for them once tangible savings are achieved over time. After the financing period, Pilkington continues to benefit from the energy cost reductions going forward.
A good example is the investment of over £300,000 made by Siemens at Pilkington’s Greengate warehouse facility to install intelligent lighting solutions. It is delivering over £120,000 of energy savings per annum, and such savings allow Pilkington to repay the initial investment after three years.