Project Description

certus_cost_eff

ENERGY PERFORMANCE

CONTRACT MODELS

   

CONTRAC TYPE

SHARED SAVINGS

SCHEME OF THE CONTRACT

Shared Savings

GENERAL INFORMATION

CUSTOMER

Energy saving is divided between ESCO and the customer

ESCO

ESCO finances interventions with equity capital or through third Party Financing

The ESCO accepts the risk to the guaranteed performance (“technical risk”) and accepts the “credit risk”

Energy saving is divided between ESCO and the customer

BANK

The Bank finances the ESCO if not use the equity

SWOT ANALYSIS

STRENGTHS

Return balanced investment between the customer and the ESCO

Both parties will immediately benefit from the savings while only the ESCO assumes the technical and financial risks

WEAKNESSES

The duration of the medium-long term of this contract could be a problem for some ESCO rather than for the Public Sector

OPPORTUNITY

Good incentive to the result: the higher the energy saving and the higher the gain for customer and ESCO

THREATS

First savings on energy bills relatively low

Problem of financing for the ESCO for early gains low

LEARN MORE

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