Project Description
ENERGY PERFORMANCECONTRACT MODELS |
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CONTRAC TYPE |
SHARED SAVINGS |
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SCHEME OF THE CONTRACT |
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GENERAL INFORMATION |
CUSTOMER |
─ Energy saving is divided between ESCO and the customer | |
ESCO |
─ ESCO finances interventions with equity capital or through third Party Financing ─ The ESCO accepts the risk to the guaranteed performance (“technical risk”) and accepts the “credit risk” ─ Energy saving is divided between ESCO and the customer |
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BANK |
─ The Bank finances the ESCO if not use the equity | ||
SWOT ANALYSIS |
STRENGTHS |
─ Return balanced investment between the customer and the ESCO ─ Both parties will immediately benefit from the savings while only the ESCO assumes the technical and financial risks |
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WEAKNESSES |
─ The duration of the medium-long term of this contract could be a problem for some ESCO rather than for the Public Sector | ||
OPPORTUNITY |
─ Good incentive to the result: the higher the energy saving and the higher the gain for customer and ESCO | ||
THREATS |
─ First savings on energy bills relatively low ─ Problem of financing for the ESCO for early gains low |
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LEARN MORE |
http://iet.jrc.ec.europa.eu/energyefficiency/european-energy-service-companies/energy-performance-contracting |