First In

ENERGY PERFORMANCE

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CONTRACT MODELS

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source: ASSISTAL

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─   The customer pays a fixed fee that guarantees a guaranteed minimum saving of energy costs  historical.

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─     If the saving is major of the minimum fixed the customer have a positive adjustment at year end

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─    ESCO finances interventions with equity capital or through third Party Financing (“credit risk”)

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─  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)

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─   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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─    Immediate return for the Public Administration in terms of savings on energy bills even if not higher.

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─    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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─    Type of contract too biased in favor of the Public Administration, so unattractive to the ESCOs

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─    The relatively long duration is a problem both for the public and private sector

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─      Little incentive to ESCOs to improve results (additional savings remain customer)

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─      Volatility of the energy market

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─       Difficult access to incentives and fundings for ESCO

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