Energy
Performance Contracting (EPC) is an innovative form
of contracting developed to overcome the major barriers to delivering
cost-effective energy and water efficiency.
Using EPC the upgrading of energy, water and operational efficiency
of the systems in your building is paid for through energy and
water savings.
More importantly, performance contracting identifies ways to
reduce energy and more recently water consumption, leading to
lower energy and water bills and reduced energy-related pollution
such as CO2 emissions.
Performance contracting is a team effort to explore improvement
opportunities and select desired outcomes. With a performance
contract, ECS assumes the technology risks and teams as a partner
in an ongoing relationship for continued improvements.
Performance Contracting has been widely used around Australia
to provide substantial cost and environmental savings.
If your organisation lacks the time, resources, expertise and
capital to fund energy saving initiatives, or you are not sure
about the returns from an energy efficient project and want
to minimise risk, EPC may be the answer.
EPC at a Glance Some reasons to choose an EPC for your
project include:
> Reduction of operating costs
> Facility improvement
> Guaranteed performance
> Outsourcing of non-core activities
> Simplicity of a single provider
> Alternative source of facilities funding
> Access to expertise
> Risk management
> Solution to a specific need
> Environment benefits
The Benefits
of EPC In traditional contracting, you might
engage a consultant, write specifications, then select the lowest
tender. You also assume all the risk and live with the results.
EPC differs from traditional consulting by being results driven
rather than price driven.
Performance contracting is a team effort to explore improvement
opportunities and select desired outcomes. With a performance
contract, ECS assumes all risks and teams as a partner in an
ongoing relationship for continued improvements.
ECS has been a pioneer in Australia of
the EPC method of delivery. From our first guaranteed, savings
funded project in 1992 to sophisticated multi technology projects
such as for Hornsby Shire Council and Transport South Australia,
ECS has been at the forefront of the EPC process.
Our staff have been intimately involved in the AEPCA Standard
Form of Contract through association with the
Sustainable Energy Development
Authority NSW and AEPCA. Many of the processes that we used
in our early projects are now reflected in the Best
Practice Guide of Energy Performance Contracting, published
by the Department
of Industry, Tourism and Resources in conjunction with AEPCA.
How EPC
works for you An Energy Performance
Contract has four fundamental steps.
1. Opportunity
__ECS work with you to define
your individual needs and objectives
__We conduct a preliminary
investigation and present an initial Facility __Improvement
Report detailing indicative savings, CO² reduction,
capital __cost, internal rate
of return, net present value and payback
__You review the initial
proposal and fine tune the desired outcomes
2. Design and Development
__ECS conducts a thorough
facility energy and operational audit
__We present a Detailed Facility
Study with recommendations for improving
__energy and operational efficiency
__We set out agreed measures
to be implemented, project timetable and __major
milestones to be achieved
3. Implementation
__If the Detailed Facility
Study meets your desired outcomes, you enter
__into an Energy Performance
Agreement with ECS
__We design
a self-funding program and arrange financing for you
__(if required)
__We implement
the program
4. Commitment
__ECS conduct staff training
to ensure transfer of knowledge in
__ operation of the program
__We monitor and measure
the performance and energy savings.
__ These performance levels
are documented in an executive
__ management report for verification
__We guarantee the savings
__We continue to search for
operational improvement
ECS can offer project funding
that enables the client to upgrade their facility or initiate
energy conservation measures without the need for capital appropriation.
ECS's methodology involves no payment from the client until
after the systems have been installed and commissioned and savings
and/or payback periods have been verified. Repayments are then
made from the energy and water savings.
