What is EPC?

Energy performance contracting

Is an innovative financing scheme offered by energy service companies (ESCOs) to building owners who are in need of energy efficiency improvements but have limited financial means or technical capacities to implement such projects on their own. What makes EPC innovative is that an ESCO finances the project based on the guaranteed energy savings that will be generated in the future.

There are three EPC types: EPC basic, EPC light, and EPC+.

What is an ESCO?

ESCO (Energy Service Company) is “as a natural or legal person that delivers energy services and/or other energy efficiency improvement measures in a user’s facility or premises, and accepts some degree of financial risk in so doing. Payment of provided services (in total or partially) is based on reached energy efficiency improvements and fulfillment of other criteria agreed upon regarding these targets.” – Directive EU 2006/32

Why we work with ESCOs?

  • An energy service company (ESCO) have an important role in the comprehensive renovation of buildings.
  • ESCO guarantees a certain level of energy savings in a building, certain indoor and water temperature, qualitative construction work and its regular maintenance throughout the duration of the contract.
  • There is little upfront cost for the owner. An ESCO will assess the efficiency opportunity, purchase equipment necessary to improve performance, and install the equipment.
  • ESCO services can be provided by any company that has the necessary knowledge and expertise in providing energy efficiency services. An ESCO service provider can include construction services companies, property management companies, or a district heating company.

There are three generic EPC types: EPC basic, EPC light, and EPC+.

F3 primarily focuses on financing EPC+, which includes structural changes, but we would be happy to speak to any ESCO looking to implement an Energy Performance Contract.

Please contact us to find out more.

Measures of energy efficiency

  • Modernization of heat exchanger substations.
  • Heating insulation, including new thermally insulated doors and windows, roof, ceiling and wall insulation.
  • Solar window treatment and passive solar devices.
  • Improvements to mechanical heating ventilation and air conditioning.
  • Improvements to interior and exterior lighting.