Energy Performance Contracting in Germany
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Box CS 4.1
Two-Stage Procedure for Energy Performance Contracts (EPCs) For complex projects, for example, hospitals or research institutions, a two-stage EPC process is usually applied. In this case, an EPC is concluded with the winning bidder. The contractor then carries out a detailed analysis of the property and verifies the initially proposed energy cost-saving measures and their results and the necessary investments. This step could take two to four months. If the results of the detailed analysis deviate significantly from the first rough analysis, the client can stop the project without any payment to the contractor. Otherwise, the contractor is paid for the analysis and then proceeds with the implementation of the measures. Source: Hessen Leitfaden 1998/2003; DENA 2008a.
data and correction; and description of the property, its energy facilities, and the building shell, such as windows and insulation. Baseline data are typically collected by the client, sometimes with help from specialists, such as an energy agency or a private consulting company. For the first demonstration projects in a program, the service is often provided free to the client, but later the client has to pay for such services. Many German federal and regional energy agencies have put together guides and data sheet templates for the process. On the basis of data collected and the energy-saving potential, the objectives of the project will be defined, including the maximum term of the contract; the approximate size of the investment; obligatory measures such as a change in energy source or replacement of windows, and other requirements. The minimum energy cost reduction can then be determined. It will be the main parameter of the EPC. Types of energy savings projects. The contract typically includes a variety of measures, both equipment (lighting, HVAC, pumps, motors, control systems, etc.) and services (planning; installation, optimization, and maintenance of equipment; controlling; documentation). Frequently, the public client requires some measures, for example, new boilers, and also often thermal renovation measures, such as new windows and insulation, that would not pay back within 10 years. The client may provide funding for these measures, to be integrated into the EPC.