Project Description

certus_cost_eff

ENERGY PERFORMANCE

CONTRACT MODELS

CONTRACT TYPE

FIRST IN

SCHEME OF THE CONTRACT

assistal

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

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

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

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

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

LEARN MORE

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