The Honolulu Board of Water Supply said Wednesday it has entered into a $33 million contract that will cut its energy use.

BWS signed an Energy Savings Performance Contract with NORESCO LLC, a Westborough, Mass.-based engineering consultant.

The contract guarantees BWS savings from installing photovoltaic systems, energy-efficient pumps, energy-efficient lighting and air-conditioning upgrades.

BWS said the installations will reduce its annual electrical use by 9 percent.

“NORESCO guarantees the (Board of Water Supply) energy savings,” said Ernest Lau, BWS manager and chief engineer. “If the savings are not realized, then NORESCO must reimburse the difference.”

BWS said over a 20-year period it will see more than $56 million in savings through avoided electrical costs, which will be reinvested in additional energy-saving projects and will not affect water rates.

The project cost is being financed by a loan from the Drinking Water State Revolving Fund, managed by the state Department of Health.

BWS said the loan will be paid back by $3.3 million in annual savings in energy costs over 17 years.

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Star-Advertiser staff