Energy Performance Contracting
Ecosave’s experience includes the delivery of many Energy Performance Contracting services for government organisations and advising peak bodies on successful Energy Performance Contracting processes. Ecosave is on state government panels of pre-qualified Energy Services Companies (ESCOs) capable of delivering effective Energy Performance Contract (EPC) projects.
Ecosave has consistently been awarded major EPCs and serviced a number of local municipalities, state government departments and agencies including: City of Sydney, City of Yarra, City of Wagga Wagga, North Sydney Council, Waverely Council, State Water Authority, Queensland Health, Department of Education & Communities (NSW) and CSIRO, among many others.
Click here to read some case studies of Ecosave’s EPCs for various government entities.
What is Energy Performance Contracting?
Energy Performance Contracting is a low risk method of implementing energy and water efficiency projects across a single large property or portfolio of properties. Energy Performance Contracting is a way of implementing energy efficiency projects for plant and equipment upgrades in all types of government facilities and buildings. It’s an innovative form of performance-based contracting, developed to overcome the major barriers to delivering cost-effective energy efficiency with minimal risk and cost to governments.
EPCs are almost exclusively used by government as a means to deliver energy efficiency outcomes.
EPCs differs from traditional contracting, which is invariably price-driven. Performance contracting is results-driven, ensuring quality of performance, energy cost savings and emission reduction. The consumption savings proposed in an EPC are guaranteed for the full term of the contract, usually between 7 and 15 years. The longer payback period and robust risk management enable larger energy and water infrastructure upgrades, plus installation of new plant and equipment, including onsite generation.
The EPC process:
Typically a government agency will tender the energy efficiency opportunity to a number of pre-qualified ESCOs. Each ESCO then submits a detailed proposal for end-to-end implementation of the energy efficiency project. The government agency reviews and selects the proposal that represents minimal risk and optimal savings in terms of energy efficiency and environmental outcomes. The chosen ESCO is then contracted in a performance based agreement with the guaranteed energy savings paying for the capital investment required to implement improvements.
- Scope determination
- Expression of Interest
- Request for proposal
- Detailed Facility Study (DFS)
- Energy Performance Contract (EPC)
- Measurement & Verification
The energy savings are guaranteed by the ESCO, the capital investment required to implement improvements is fully funded by the savings over a fixed pay-back period and the ESCO assumes all technical risks and in some cases the financial risks as well.
For non-government commercial organisations, Ecosave has developed a unique and robust model for delivering energy and water efficiency projects – the Guaranteed Energy Savings Project (GESP). The GESP model extends and improves upon the standard ‘audit and install’ approach, to create a fully integrated, end-to-end service backed by a performance based contract. Ecosave will manage the upgrade from start to finish and guarantee the implementation and savings – features usually only found in large scale Energy Performance Contracts.
To find out more or to discuss how Ecosave can help your organisation save money and resources through Ecosave’s energy efficiency, energy management or energy advisory services – call 1300 55 77 64 or submit an online enquiry.