Project Description

certus_cost_eff

ENERGY PERFORMANCE

CONTRACT MODELS

CONTRAC TYPE

FOUR STEPS

SCHEME OF THE CONTRACT

Four Steps

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