Model Energy Performance Contract
In order to make energy efficiency improvements to a building, one must first understand how the building is operating and the most cost effective ways to improve its energy performance. This model contract can be adapted and used with an Energy Services Company(ESCO) to obtain necessary data and information through a technical energy audit and project development plan.
This contract for a technical energy audit and project development is the first of two contracts with the selected ESCO. This contract specifies that the ESCO will complete an investment grade technical energy audit that will include an analysis of each proposed project with projected energy and cost savings and itemized project cost. In addition, the contract specifies that the ESCO will also propose terms for the performance contract and present a proposal that includes recommended projects, financing terms, and projected annual cash-flow analysis. The work performed by the ESCO through this contract will form the basis for a subsequent Energy Performance Contract.
Readers interested in cost-effectively reducing energy costs in their facility can use this contract to work with an ESCO. It is important to note that this document does not attempt to identify or address all circumstances or conditions a reader may need in a contract. Some readers may not be interested in a detailed, full-scope audit. Therefore, it is important that one consult with legal counsel and procurement staff to adapt the contract to fit the potential scope and needs of their specific project. Length: 13 pages
Identifies how much energy a building uses and the purposes for which it is used, and identifies efficiency and cost-reduction opportunities. Energy efficiency is the process of using less energy to produce the same or increased functions. Often used mistakenly as a synonym for ENERGY CONSERVATION. The ability or potential of a physical body to do work. The most common forms of energy are heat, light, mechanical (moving parts), and electrical.
