ENERGY PERFORMANCE CONTRACT ( EPC )

Energy Performance Contract is a contractual arrangement between beneficiary and the provider, normally the Energy Service Company (ESCo) of an Energy Efficiency (EE) improvement measure, where investments in that measure are paid for in relation to a contractually agreed level of EE improvement. EPC was created to reduce the biggest barriers to investments in energy retrofits. EPC concept for the implementation of measures or energy saving projects is through direct investment by the Company or the Energy Services Company (ESCo) to “zero cost” to the owner or management of buildings or industrial facilities. The buildings or industrial facilities must been identified as having great potential for energy cost savings. Return on investment will be used to repay the ESCo only from actual energy savings resulting from the implementation of energy conservation projects undertaken by the ESCo