Project Description

certus_cost_eff

ENERGY PERFORMANCE

CONTRACT MODELS

CONTRAC TYPE

PAY FROM SAVINGS

SCHEME OF THE CONTRACT

PAY FROM SAVINGS

GENERAL INFORMATION

CUSTOMER

The customer Finance interventions through third Party FinancingThe customer returns the debt in payments proportional to the savings achieved (the funder evaluates the technical project)The customer accept the “credit risk”For the duration of the contract, receives 100% of the savings achievedThe customer pays a fixed fee for the services of the ESCO

ESCO

Finds and organizes the financingESCO guarantees a minimum energy savings agreed with the customerAccept only the risk to the guaranteed performance “technical risk”

BANK

The Bank participates in the project and finances the customer, accepts a financial risk since it is reimbursed annually based on the cost savings achieved

SWOT ANALYSIS

STRENGTHS

High degree of flexibility of payments for the Public AdministrationPayments to third party lenders will be conditional on the actual savings, so that any deficiencies do not cause problems with the payment of the loan

WEAKNESSES

The banks can not schedule the time for the return of their investment and they have to share the risk of the project with the ESCO about the level of guaranteed energy performance

OPPORTUNITY

Low Financial risk for Public Administration

THREATS

The credit system has difficulty accepting the project risk− The ESCO is very involved on achieving the goals of scheduled saving

LEARN MORE

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