Developing Model ESCO Performance Contracts
7. KEY SUCCESS DRIVERS FOR A EPC CONTRACT Some of the key drivers of a successful energy performance contract as identified through the project are as follows: 7.1.
Understanding Roles, Responsibilities
It is the joint responsibility of the ESCO and Customer to agree on the approach used in each case. This can include, for example, the requirements to operate the equipment installed by under the contract according to specified standards or to maintain certain parameters of the system operation. The best way to ensure the EPC is implemented is to make sure all roles, responsibilities, requirements, and assumptions are clearly articulated within the resulting contract documents Client
ESCO
Selects Auditor/ESCO Awards EPC Approves detailed engineering design
Audit – analysis of potential energy savings Prepares conceptual design of project Delivers and installs equipment
Inspects and approves delivery Operates plant, Measures savings, pays proportionally
Assist in operation, training, verification and maintenance
Customer - Roles and Responsibilities A number of decision-makers will normally be involved before the final approval is given to implement the project when a customer is dealing with a contract. For the project to develop and be implemented smoothly with minimum delays, it is important to secure corporate buy-in at all levels. In general, this means that the management must be supportive of the initiative, understand the economic and business impacts of the energy saving project, and provide leadership. The Facility Manager must be involved in the technical development and provide endorsement to whoever will sign the final approval, ensuring all technical and operations risks are appropriately managed; and that there is proper integration with existing maintenance arrangement. 27 ESCO- Roles and Responsibilities The ESCOs main responsibilities include: Tracking and monitoring of energy consumption, Energy plan and engineering design and present the project to the customer; Supply installation and maintenance equipment, overall project management, audit and evaluation of saving and guarantee the savings
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A best practice guide to energy performance contracts
reducing operating costs through guaranteed outcomes
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