Certus Cost Eff

ENERGY PERFORMANCE

CONTRACT MODELS
   
CONTRAC TYPE FOUR STEPS
SCHEME OF THE CONTRACT

 

Four Steps

source: ASSISTAL
GENERAL INFORMATION CUSTOMER    ─      The customer pays a fixed fee for the services of the ESCO
ESCO    ─      ESCO finances the interventions according to the following mechanism:

  • Step 1: optimization of operation and maintenance (no investment)
  • Step 2: the saving obtained from Step 1 finances measures of energy saving simple and low cost
  • Step 3: the saving obtained from Step 1 and Step 2 finances energy saving measures medium size
  • Step 4: the saving obtained from preceding steps finance large energy saving measures and with return times longer
BANK     ─      There is not third-party financing
SWOT ANALYSIS STRENGTHS

─      Flexibility is the main advantage that characterizes this model.

─      No need for initial capital investment and long-term planning

─      The model permit to the Public Administration to carrying out renovation projects
WEAKNESSES

─      There is no guarantee of a high energy savings, at least in the short time

─     The model is designed to be extended over a long period of time; the impact of the measures is low in the short term
OPPORTUNITY     ─      The customer is not required to pursue the project if the results are not tangible and satisfactory, or if the initial conditions change (financial resources, energy cost, etc.).
THREATS     ─      Volatility of the energy market makes no programmable return times of small measures
LEARN MORE

http://iet.jrc.ec.europa.eu/energyefficiency/european-energy-service-companies/energy-performance-contracting