Energy (Savings) Performance Contracting
Energy (Savings) Performance Contracting (EPCs/ESPCs) is a turnkey service that provides customers with a comprehensive set of energy efficiency, renewable energy and distributed generation measures and often is accompanied with guarantees that the savings produced by a project will be sufficient to finance the full cost of the project. A typical ESPC project is delivered by an Energy Service Company (ESCo) and includes the following elements:
Turnkey Service: The ESCo provides all of the services required to design and implement a comprehensive project at the customer facility, from the initial energy audit through long-term Monitoring and Verification (M&V) of project savings.
Comprehensive Measures: The ESCo tailors a comprehensive set of measures to fit the needs of a particular facility, and can include energy efficiency, renewables, distributed generation, water conservation and sustainable materials and operations.
Project Financing: The ESCo arranges for long-term project financing that is provided by a third-party financing company. Financing is typically in the form of an operating lease or municipal lease.
Project Savings Guarantee: The ESCo provides a guarantee that the savings produced by the project will be sufficient to cover the cost of project financing for the life of the project.