Benefits of an EnPC

Energy service companies (ESCOs) have the necessary know-how to provide turnkey services and solutions achieving significant energy cost reductions while addressing various market-related barriers. ESCOs can handle projects, manage or mobilize financial resources, undertake installation and maintenance work as well as collaborate with other actors. When providing Energy Performance Contracting (EnPC), ESCOs share the unique characteristic to assume performance risks by linking their compensation to the performance of their implemented projects, thus ensuring the delivery of savings-oriented solutions.

General Advantages

  • Reduced investment and risk: ESCOs assume the financial risk for the project and ensure savings for the customer even after the end of the contract.
  • Reduced energy consumption: typically by between 20% and 30% without additional investment, which contributes to the EU decarbonisation targets without direct government investment.
  • Improved indoor environmental quality and building value: beyond the financial and energy savings, renovations increase the value of the property and improve the comfort and health of the inhabitants.

Advantages for public authorities

  • Stimulates local economy: creating work for SMEs, growing GDP and developing the real estate market.
  • Opportunity to save on aggregate projects: similar building types (for example hospitals and schools) can be combined to optimise efficiency and returns.
  • Increased energy security: energy efficiency helps fight energy poverty and reduces national dependence on foreign energy imports.