Developing Model ESCO Performance Contracts
3. THE ENERGY PERFORMANCE CONTRACTING PROCESS 3.1.
Tasks involved in reaching award of EPC stage
Stage 1: Walk through Energy Audit and Business Proposal Timeframe: 1-2 Weeks To conduct a ‘walk-through’ audit and to prepare a proposal to the facility owner accurately the ESCOs will require access to the facility. For developing a business proposal, there will be two key phases to the overall EPC process. First, the responding ESCO will enter into an audit contract and then, post-audit, will enter into the full EPC. Both phases should be clearly articulated in the proposal. Stage 2: Contract ESCO for Investment Grade/Detailed Energy Audit Timeframe: 6-7 Weeks Once proposals are received, the next step is to review the proposal, negotiate and contract the ESCO for the detailed energy audit, and for the ESCO to then conduct the investment grade audit. The Facility Owner will be responsible for providing utility bills and facility information. Note- In some cases, the Facility owner may include the services in terms of a detailed/ investment grade energy audit in the final energy performance contract. Stage 3: Development of a Detailed Project Report (DPR) Timeframe: 5- 6 Weeks Based on the findings of the detailed/investment grade energy audit, the ESCO will develop a list of ECMs for implementation. Accompanying this will be energy savings estimates, project costs, implementation details and financing plans which will form a comprehensive detailed project report (DPR). This DPR is then submitted to the Facility Owner. Stage 4: Finalize the EPC Contract with ESCO and Coordinate Financing Timeframe: 5- 6 Weeks After reviewing the DPR and depending on the project viability, the performance contract is negotiated and finalized. The ESCO may also coordinate financing for the project with a Financial Institute Step 5: ESCO Implements Energy Improvements Timeframe: 5 - 6 Weeks Once the EPC is finalized and signed, the ESCO can begin implementing the ECMs, training staff on proper operation and maintenance (O&M), and putting measurement and verification mechanisms in place.
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