energy performance contract (epc) / energy management contract (emc)

7/27/2019 Energy Performance Contract (EPC) / Energy Management Contract (EMC)

1/27

EPC / EMCenergy performance contract / energy management contract


2/27

what is an epc?


3/27

you pay for energy you useenergy is definitely not cheap and also think

about the carbon footprint


4/27

energy demand keeps risingevery year you budget more for operational costs

which could be used for new developments


5/27

efficient energy technologiesthere are efficient energy technologies in the

market but the upfront cost is too high


6/27

led, cfl, incandescent bulbssimply comparing cfl and incandescent bulbs to

led bulbs, the savings are huge in led bulbs

$0

$100

$200

$300

$400

Total cost for 50k hours of lighting including bulb price

$362.50

$87.30$59.58

LED Bulb CFL Bulb Incandescent bulb


7/27

led, cfl, incandescent bulbsdata used for the comparison chart.

led cfl incandescent

lifespan in hours

watts (eqv. brightness )

cost per bulb

daily cost*

annual cost*

cost for 50k hours

bulbs needed for 50k hrs

total cost with bulb price

50,000 9,000 1,000

8 14 60

$20 $3 $1.25

$0.004 $0.007 $0.03

$1.46 $2.56 $10.95

$39.58 $70.83 $300

1 5.5 50

$59.58 $87.30 $362.50

*assuming 5 hrs / day @ $0.10 per kwh #data from
http://energyusecalculator.com/electricity_cfllightbulb.htmhttp://energyusecalculator.com/electricity_cfllightbulb.htm


8/27

epc is an efficiency measureepc provides you comprehensive sets of energy

efficiency solutions for your operations


9/27

with guaranteed savingsepc saves you huge amount of operational costs

from day one, sometimes even upto 70%


10/27

the biggest benefit...wait for it...


11/27

huge financial freedomnow you could think of advancements in other

areas in your corporation ( Yeah, right ! Free like a cloud )


12/27


13/27


14/27

now, your 0&M cost is lowduring epc, you repay for the upgrades from the

energy savings and keep part of it for yourself

0

25

50

75

100

before epc during epc

Your Total Energy O&M Costs You repay upgrades from the savingsYour Net Energy Cost Savings


15/27

after, savings are all yoursafter epc, as your savings would have paid for

the upgrades; you keep all the remaining savings.

0

25

50

75

100

before epc during epc after epc

Your Total Energy O&M Costs You repay upgrades from the savingsYour Net Energy Cost Savings


16/27

how is it achieved?


17/27

savings are calculatedthe energy savings from the infrastructure

upgrades are calculated to cover the investment


18/27

guaranteed savingsenergy service company (esco) guarantees the

savings from the infrastructure upgrades


19/27

savings pay for investmentthe energy savings during the epc contract

finances the upgrades, until investment is paid off


20/27

esco invests up-frontesco pays for all the costs associated with the

infrastructure upgrades up front.


21/27

what is the process?


22/27

step 1 requirement analysisesco does initial site survey, analyse and prepare

energy savings guide


23/27

step 2 feasibility studyesco confirms energy savings and prepares

infrastructure upgrades design outline


24/27

step 3 proposalesco provides a epc proposal to the client with

energy savings, payment plans and schedule


25/27

step 4 implementationesco starts implementing the upgrades to the

energy infrastructure in agreed time schedule


26/27

step 6 completionyour energy savings have paid all the up-front

costs to the esco. you start saving more...


27/27

energy performance contract (epc) / energy management contract (emc)

Documents