Performance Contracting Model : Shared Energy Savings

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Performance Contracting Model Shared Energy
Savings

• ESCO invests in the energy efficiency improvement
  measures and commits to achieving energy savings
  over a fixed period called the TERM.
• During the TERM, Agency keeps a guaranteed amount
  of savings achieved and pays the ESCO the
  remaining savings as payment for their investment
  
• ESCO offer comprises
• Audit Fee Fee for carrying out the audit
• Annual Declared Savings (ADS) Dollar value of
  energy cost savings that Agencys
  facility will realised annually
• Annual Guaranteed Amount (AGA) Guaranteed
  dollar value savings that
  Agency will enjoy annually

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Performance Contracting Model Shared Energy
Savings

• Project Phases
• ESCO will carried out the Audit and if it
  confirms that the ADS can be met, ESCO will be
  paid 50 of the Audit Fee.
• Agency will review details of the energy saving
  measurements and decide whether to execute SESP
  contract. If it does not, ESCO will be paid the
  remaining Audit Fee and project ends.
• If Agency is satisfied and execute the SESP
  contract. ESCO will implement the measures and
  the TERM will begin. During the Term, the actual
  savings will be monitored regularly.

Payment Scenarios
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Performance Contracting Model Shared Energy
Savings
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Performance Contracting Model Shared Energy
Savings
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Performance Contracting Model Shared Energy
Savings