FINANCIAL SOLUTIONS
What is the Energy Performance Contract (EPC)?
Reducing costs, increasing operational efficiency, improving energy infrastructure, saving the energy resources or contribution to the protection of the environment...For whatever reason it might be, saving energy is the right call, but realizing the most suitable project is a difficult and tiring process.
Energy Performance Contracts (EPS) are a financial mechanism used to pay for today's energy efficiency projects with tomorrow's energy savings, without spending your business's capital budget.
Businesses can keep all the risks apart regarding energy efficiency projects by the Energy Performance Contracts with Energy Service Companies (ESCO). ESCOs assume the project's turnkey implementation, maintenance, financing, and all performance risks.
Advantages
- Turnkey project design and implementation
- Performance and energy saving guarantee
- Project finance without spending company capital
- Project Risk Management
- No maintenance cost during contract
- Simplified Process Management
- Able to be involved in technology and sub-contractor selection
- Modernization and transition to new technologies
- Greenhouse gas emissions and carbon footprint reduction
- Minimum impact from possible increases on energy prices in the future
- Remotely monitorable and reportable performance measurements
STEPS
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1- PRELIMINARY ENERGY AUDIT
Our experienced engineers identify potential opportunities when conducting site visit under the supervision of a technical employee of your business.
Subsequently, theycompletes the preliminary project report and pre-feasibility studies and present them to you so that businesses can examine potential opportunities.
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2- LETTER OF INTENT
The scope of detailed measurement and project design service is determined by mutual information sharing between the facility and ESCO. Project analysis is carried out according to detailed measurement results and pre-acceptance conditions are determined.
ESCO commits not to charge any fee for the measurement and evaluation services if the study is resulted with a Energy Performance Contract.
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3- ANALYSIS & DESIGN
Measurement and analysis of the current state of the business is done and historical data is collected. Accordingly, the energy consumption trend (baseline) which will be the basis of the Energy Performance Contract is determined
The scope, implementation details, cost and processes of the new project to be implemented are calculated. In light of all the studies done, savings calculations are made for the new project to be used during the contract.
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4- AGREEMENT
The agreement scope, business plan and guaranteed performance value are determined. The acceptance and penalty terms of the project are clearly determined and signed in the contract.
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5- PROJECT MANAGEMENT & IMPLEMENTATION
ESCO shares project details with the financing organization for project financing. In addition, ESCO delivers the letter of guarantee to the financing organization for the payments after the savings will be obtained by the implementation of the project.
Equipment and labor are supplied. The work force is managed in line with the rules of the facility by creating construction site management. If the business has planned downtimes, the process can be managed in such a way that it does not have a negative impact on the production plan.
Testing, adjustment, balancing and commissioning of the system are performed. System&maintenance training is given to the related unit of the facility.
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6- MEASUREMENT & VERIFICATION
Measurement, monitoring and analysis of the performance indicators specified during the project design phase are done.
Verify the savings or performance provided. Maintenance support is provided to ensure the same performance values during the Energy Performance Contract.