Energy Performance Contracts & Energy Performance Related Payments

Energy Performance Contracts (EPC)

An EPC is a contractual arrangement whereby a supplier or contractor implements an energy efficiency improvement to a client's facility (and/or equipment renewal) and its fee is based on the value of the energy savings delivered. The energy efficiency improvement usually consisting of a number of measures and typically involves works, but may simply involve operational and maintenance services that improve the efficiency of the facility.

Energy Performance Related Payments (EPRP)

An EPRP is a contractual arrangement whereby a supplier or contractor gets paid a fee for providing a service or undertaking work that will improve the energy efficiency of a facility, and a portion of that fee is contingent on a verified improvement in energy performance. The portion of the fee that is at risk is the energy performance related payment, and this serves as an incentive to the supplier or contractor to ensure energy savings are achieved.

Put another way, an Energy Performance Related Payment (EPRP) is simply an additional guarantee that not only will the product or work actually fulfil the function for which it was intended, but it will do so in a way that will improve energy efficiency. It ensures that not only is customer functionality achieved, but also a measurable improvement in energy efficiency will be achieved. And if that energy efficiency improvement is not achieved, the supplier/contractor will suffer some form of financial loss or penalty as a result. 

Our experience

PowerTherm has been working closely with SEAI (since 2011) and the Department of Communications, Energy and Natural Resources to help develop a strategy and materials to support the development of the Irish market for EPCs and EPRPs. This work includes developing a Guide to Energy Performance Contracts and Guarantees(available from SEAI's website), a Handbook to EPCs and separate Handbook to EPRPs, and preparation of a special energy survey template, referred to as an EPC Assessment. We have also contributed to a review of SEAI's standard EPC contract and associated procurement process and payment mechanism.

In 2012 PowerTherm worked with Dublin Port Company to implement Energy Performance Related Payments for two projects, and PowerTherm itself provided a number of EPRPs in relation to these projects. SEAI has prepared a Case Study on the EPRPs employed (see Case Studies for more information).

How we can help

We can help you plan, procure, contract and implement an EPRP or EPC with an Energy Services Company (ESCO). We can independently measure and verify performance (energy savings). We can also conduct an EPC Assessment of your facility to assist you develop the likely scope and potential for an Energy Performance Contract.


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