Developing Model ESCO Performance Contracts
Annexure I- Sample Contents of a DPR I.
II.
INTRODUCTION Energy performance in existing system (Fuel consumption, Average annual production ,Specific energy consumption) Existing technology/equipment (Description of existing technology) Baseline establishment for existing technology (Design and operating parameters , Operating efficiency analysis) Barriers in adoption of proposed equipment (Technological barrier, Financial barrier, Skilled manpower) PROPOSED EQUIPMENT FOR ENERGY EFFICENCY IMPROVEMENT Description of proposed equipment o Detailed of proposed equipment o Equipment/ technology specification o Integration with existing equipment o Superiority over existing system o Source of equipment o Availability of technology/equipment o Service providers o Terms and conditions in sales of equipment Life cycle assessment and risks analysis Suitable unit for Implementation of proposed technology
III.
ECONOMIC BENEFITS FROM PROPOSED TECHNOLOGY Technical benefit ( Fuel saving ,Electricity saving , Improvement in product quality , Reduction in raw material , Reduction in other losses ) Monetary benefits Social benefits (Improvement in working environment ,workers skill ) Environmental benefits (Reduction in effluent generation ,GHG emission other emissions )
IV.
INSTALLATION OF PROPOSED EQUIPMENT Cost of project (Equipment cost , Erection, commissioning and other misc. cost Arrangements of funds ) o Entrepreneur’s contribution o Loan amount o Terms & conditions of loan Financial indicators o Cash flow analysis o Simple payback period o Net Present Value (NPV) o Internal rate of return (IRR) o Return on investment (ROI) Sensitivity analysis Procurement and implementation schedule
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