Practices

The Commission is in the process of updating some of the content on this website in light of the withdrawal of the United Kingdom from the European Union. If the site contains content that does not yet reflect the withdrawal of the United Kingdom, it is unintentional and will be addressed.

A guide to Energy Performance Contracts and Guarantees

Share this Post:

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.