Certus Cost Eff

ENERGY PERFORMANCE

CONTRACT MODELS

   
CONTRAC TYPE SHARED SAVINGS
SCHEME OF THE CONTRACT

 

Shared Savings

source: ASSISTAL

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