Governor Northam announces efficiency efforts have saved Virginians $1 billion in energy costs

RICHMOND—Governor Northam announced on October 6, 2021, that Virginia has reached more than $1 billion in energy savings through the Virginia Department of Energy’s Energy Savings Performance Contracting Program. More than 30 states have similar programs, and Virginia is only the second state to accomplish this milestone.

“Achieving this impressive level of energy savings shows that Virginia is ready and poised to be a national leader on clean energy,” said Governor Northam. “Energy efficiency is one of the most cost-effective ways to meet energy needs. These savings are a huge win for sustainability and reaching our ambitious clean energy goals.”

Virginia Energy’s Energy Efficiency and Performance Contracting Support program was created in 2001. Through the program, state agencies, higher education facilities, and other public bodies enter into a contract with an energy services company to significantly reduce energy costs through one or more conservation or operational measures. The cost of the project must equal the projected savings. The program has helped save $1,011,581,170 in energy costs since it was created.

“Working closely with state agencies, local governments, utilities, and the private sector, Virginia Energy has administered this important program, helping Virginia establish itself as a national leader in the expansion of energy efficiency,” said Secretary of Commerce and Trade Brian Ball. “These efforts and others are part of Virginia’s commitment to clean energy, and I commend Virginia Energy and those that worked with the agency for meeting this outstanding goal.”

“This significant milestone shows what we can accomplish when our public bodies work together with our vendor community to achieve common goals,” said Secretary of Administration Grindly Johnson. “Through innovative contracting, strategic management, and collaboration, we’re able to once again show why Virginia is a leader in business and energy efficiency.”

Since 2001, Virginia Energy has completed 271 energy efficiency projects: 166 for public bodies, 50 for state agencies, and 55 for higher education systems. The average project value was $3.7 million. Annually, Virginia Energy completes projects totaling an average of $50.5 million. To learn more about the program, click here.

“The General Assembly and Virginia Energy saw the rewards of energy efficiency improvements early—creating an avenue to facilitate those improvements through our agency in 2001,” said Virginia Energy Director John Warren. “Our team has spent many hours visiting localities throughout the Commonwealth to ensure successful projects, and the results speak for themselves. We are excited to see what the results of the next 20-years of work will be as more public bodies realize the benefits of the program.”

This announcement comes on Energy Efficiency Day, designated annually on October 6 and celebrated by a nationwide network of energy efficiency groups and businesses. More than 80,000 Virginians work in the energy efficiency sector in high-skilled, good-paying, clean energy jobs that cannot be outsourced.