Energy Performance Contract

An energy performance contract, EPC, is the agreement between an ESCO and a client who owns or operate the facility where the energy efficiency project is to be made. The core of the agreement is that the ESCO provides expertise and knowledge on identification and assessment of the energy saving potential and the measures that should be part of the project. The ESCO will undertake risks associated with achieving the savings guaranteed by the project and the ESCO is paid for by the cost savings. During the contract period the ESCO will receive a portion of the energy cost savings as a repayment of the project cost and their services. When the payment period is over the services from the ESCO will cease and the installed equipment and full energy cost savings belong to the client.