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p2e2 Energy Performance Contracts
John Herbert
If you own or manage a building, we have good news you can save you money . . .
Energy performance contracting (EPC) is a smart, affordable and increasingly common method to achieve building improvements that save you both energy and money - an most importantly without upfront capital expense.
Any large building or group of buildings are an ideal candidates for
performance contracting, including government buildings, schools,
hospitals, hotels, commercial office buildings, and industrial facilities.
Do you face these problems at your facility?
Old, obsolete or inefficient energy systems and equipment.
You need to make energy system improvements, but there are too many other
demands on your time and budget.
You have recurring equipment problems that take up valuable staff time and effort?
If so, here's the good news...
You can enjoy energy upgrades you need today, with no up-front capital cost, it is like leasing but only pay later from resultant energy savings. Best of all, those savings are guaranteed. How? through the use of an energy performance contract (EPC).
Additionally all the energy saved means
less environmental damage, so energy performance contracts lower the
cost of future running costs and reduce your environmental impact.
Here's how it works
Your energy bills are higher than they need to be due to obsolete or aging
equipment. By choosing to contract with an energy contract you can put those wasted energy dollars to better use.
working with Kelcroft we help implement cost effective energy
savings that are guaranteed, the savings will cover all project costs
usually within 3 to 6 year period.
Putting the all the pieces together:
- Identify and evaluate energy opportunities;
- Develop engineering designs and specifications;
- Manage the project from design to installation;
- Arrange for financing;
- Train your staff and provide ongoing maintenance services;
- Guaranteed that energy cost savings will cover all project costs;
Performance contracts are not exactly cutting edge science, but what is new is their application for energy saving procurement in Asia. Tried and tested overseas, EPC has attracted growing interest from the private sector.
Barriers & Risk
To good to be true? of course there are risks involved, EPC disadvantages include:
1. After the signing the contract you are tied to one vendor.
2. M&V - once the contact is running the results need to be continuously measured and verified (known as M&V).
3. Any failure to deliver the expected result requires reconciliation to recover shortfall, typically carried out annually.
4. Poorly formulated contract failing to ensure that energy performance doesn't override your core business.
5. Inadequate remediation protocol - energy performance contracting is a partnership, where both parties must benefit.
6. Finding the experienced and highly skilled project managers are essential for both the planning and execution phases.
Even wondered how some businesses manage to offer impossibly low cost products? Energy management is a strategic tool, reducing your energy operating expenses by up to 40%. Pass those savings on to your customers and beat the competition hands down.
Like any contract, the potential downside can be mitigated by strategic management and careful planning. EPC is a tool, properly applied, it helps businesses create EPC partnerships delivering results that improve your bottomline, giving your business a competitive edge.
Call us today ?
For further information regarding energy performance contracting partnerships call Mr John Herbert at our Hong Kong office +(852) 2335 9830 or fax +(852) 2335 9862 or email us