Measure

EPC Energy performance contracting - financing energy efficiency projects

EPC Energy performance contracting - financing energy efficiency projects
© andranik123, #172928043, 2018, source: Fotolia.com
Resources:
Energy
Sector:
All sectors, Construction
Cost:
High cost
Payback time:
4 - 10 Year(s)
Associated cost savings: Energy:
25 - 70%
Premises and operation areas:
Office building, Production building, Production processes
Size of company:
Micro (less than 10), Small (less than 50), Medium (less than 250), Large (more than 250)
What is the business case of this measure?:
  • Contractual guarantee of energy savings attained covering all investment costs
  • Energy services tailored to the customer's situation
  • Lowering of the customer's operational costs
What is in it for you:
Energy efficiency project paid off by energy savings. Improved energy performance. Method for financing energy efficiency measures.
Descriptive information:

Companies planning to retrofit their building or to implement an energy efficiency project can often face difficulties in terms of the most effective solution to measure energy performance and guage the benefits of the project.

Energy Performance Contracting (EPC) is a tailored solution for implementing and financing energy efficiency projects or building retrofits. The solution is supplied by Energy Service Company (ESCO). The EPC methodology reduces energy costs by implementing energy saving measures, especially investments in innovative technology. The customer usually recuperates the cost of the project through the resulting energy savings.

ESCO provides the technical solution and financing options for enery saving measures. An agreement between ESCO and the customer guarantees energy savings (or on operating costs) will be achieved over the duration of the contractual relationship. The savings cover all  costs  (initial costs, investment costs, financing costs, service activities and energy management). If the guaranteed savings stated in the contract are not reached, ESCO will pay the difference.

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