This guide discusses the incorporation of energy performance guarantees into services contracts in order to transfer some of the energy savings risk from the customer to the supplier. It identifies a range of such service contract models and examines the use of energy savings to pay down the cost of energy efficiency investments, in some cases using external finance.
A number of common Energy Performance Contracts (EPCs) models - shared savings and variable contract terms - are explained and a number of short case studies are outlined. It also illustrates the EPC procurement stages and identifies contractual considerations that are of particular relevance to public sector organisations.
The guide is of relevance to public and private sector managers interested in alternative methods of achieving and financing energy efficiency, as well as ESCOs. It is anticipated that the guide will also assist in achieving a common understanding of terminology and contract models, thereby assisting in market development.