Energy performance contracting

You enter into an agreement with a private energy service company that will identify and evaluate energy-saving opportunities and then recommend a package of improvements to be paid for through savings.
Company will guarantee that savings meet or exceed annual payments to cover all project costs—usually over a contract term of four to 8 years. If savings don’t materialize, the company pays the difference, not you. To ensure savings, the service company offers staff training and long-term maintenance services.
Many types of building improvements can be funded through your existing budgets— new lighting technologies, boilers and chillers, energy management controls and swimming pool covers, to name a few.

Implementation of EPC :

  • Identify and evaluate energy-saving opportunities
  • Develop engineering designs and specifications
  • Manage the project from design to installation to monitoring
  • Arrange for financing
  • Train your staff and provide ongoing maintenance services
  • Guarantee that savings will cover all project costs

Main differences between implementation of EPC and traditional implementation:

Company providing the implementation of EPC is the only provider of the whole project (even financing it). Client exchanges contract only with this company.(FES) FES exchanges contracts with the subcontractor and FES is held liable for the management of the whole project.
Concept of the project is interactive process. FES is in the constant contact with the client during this concept, each concept and alternatives are consulted with the client with respect to his requests and desires. If the client does not agree with some of the measures, these measures will not be included in the project. 

FES is fully responsible for the success of the project. FES is paid from the energy saving, that has been guaranteed by this project. FES
Guarantee the energy saving will be on such a high level to cover all costs of the project. FES is responsible for the all debts that has been caused by low effect in economy drive of this project.
FES is financing the whole project with possibilities of financing by it´s own sources or to gain the resources in other financial institutions. If own sources are used by FES, debit of the client is not in traditional way. Client is paying only in cases the energy savings will be accomplished. If resource are gained in financial institution client could became the borrower. The main difference is that FES is the obligatory to pay the differences if energy savings are not sufficient. 

 Advantages of EPC for the client:

  • cutting on power consumption ( up to 30%)
  • Cutting on operational costs like services costs, operation of the equipment etc.
  • improvement of the working environment
  • speed up the production in case of technology change
  • staff that has been educated and motivated
  • access to outer financial resources for the enter investment
  • minimization of risk along with realization of the project
  • Identical motivation of the client and company - to achieve the ultimate savings


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