For a kind future.
Energy Performance Contracting (EPC) has been used in the European Union (EU) since the 1980s. However, the market remains underdeveloped, especially compared to North America (USA and Canada). EPC is a highly recognized practice internationally, as an effective and guaranteed method to reduce the operating costs and environmental impact of buildings.
There are 2 basic models of EPC. They are used to determine the customer’s relationship with Energy Service Company (ESCO) and the financier.
- Guaranteed savings contract
- Shared savings contract
A standard EPC covers the following:Â
- Comprehensive serviceÂ
EPC provides all the services required to design and implement an integrated program at the customer’s premises, from the initial control of the action through the long-term Monitoring and Verification of the energy saving program.Â
- Holistic measuresÂ
EPC is designing a comprehensive package of measures to meet the needs of a specific installation, and may include energy efficiency, renewable energy, decentralised generation, water saving and sustainable materials and activities.Â
- FinancingÂ
EPC takes care of the long-term financing of the project provided by a third-party (e.g., bank), usually in the form of a bank loan.Â
- Energy savingÂ
EPC provides the guarantee that the savings generated by the project will be sufficient to cover the cost of financing the project over its lifetime.Â
Energy Service Companies (ESCOs)
- ESCO is a natural or legal person who can provide an energy service with the aim of improving energy efficiency and implementing energy projects.
- Designs and implements the optimal energy upgrade solution.
- Studies historical data on energy consumption.
- Installs state-of-the-art technology.
- Finance the project or provide financing solutions.
- Provide various forms of energy (e.g. LPG, electricity from PV , etc.).
- Measure and verify the guaranteed energy savings.
The energy services provided by ESCO
- Implementation of energy saving projects
- Installation, replacement, adjustment of equipment
- Installation of more efficient energy production systems
- Partial or total upgrade of the building envelope
- Installation of more efficient lighting systems
- Installation of integrated energy management system
- Any other energy efficiency improvement measure