Project Description
ENERGY PERFORMANCE CONTRACT MODELS |
CONTRACT TYPE |
FIRST IN |
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SCHEME OF THE CONTRACT |
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GENERAL INFORMATION |
CUSTOMER |
─ The customer pays a fixed fee that guarantees a guaranteed minimum saving of energy costs historical. ─ If the saving is major of the minimum fixed the customer have a positive adjustment at year end |
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ESCO |
─ ESCO finances interventions with equity capital or through third Party Financing (“credit risk”) ─ The ESCO makes the interventions of energy savings and governs installations, of which will maintain the property until the end of the contract (technical risk) ─ ESCO it is for to 100% of the expected savings in contract; if the saving is major, the difference is shared with the customer |
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BANK |
─ The Bank finances the ESCO if not use the equity | ||
SWOT ANALYSIS |
STRENGTHS |
─ Immediate return for the Public Administration in terms of savings on energy bills even if not higher. ─ A minimum amount of savings is also guaranteed by the contract with the ESCO who assumes the financial and technical risk of the operations; additional savings beyond those guaranteed to the customer are recognized to the customer |
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WEAKNESSES |
─ Type of contract too biased in favor of the Public Administration, so unattractive to the ESCOs ─ The relatively long duration is a problem both for the public and private sector |
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OPPORTUNITY |
─ Guaranteed savings and immediate on energy bill, and any residues savings in favor of the customer (public). | ||
THREATS |
─ Little incentive to ESCOs to improve results (additional savings remain customer) ─ Volatility of the energy market ─ Difficult access to incentives and fundings for ESCO |
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LEARN MORE |
http://iet.jrc.ec.europa.eu/energyefficiency/european-energy-service-companies/energy-performance-contracting |