EPC projects (Energy Performance Contracting)
Energy Performance Contracting (EPC) is a method based on which we offer turnkey services with the intention to lower the consumption of energy in the customer building. These services include energy analysis, project design, installation of equipment, application of energy cost saving measures, regular maintenance, training of operating personnel and project fi nancing.
We get paid only when the project actually saves energy and brings the cost down. Agreement is usually contracted for a time between 4 and 8 years. During this time, the amount of funds saved thanks to the application of the project is divided between the customer and our company. We have to pay our loan payments and our expenses including operational cost from our portion.
Throughout the implementation of energy saving projects we use our unique know-how, apply the EPC method and invest our own sources and guarantee energy savings.
Basic EPC realization methods
We are the only responsible supplier for the entire project (including fi nancing services). The customer concludes agreement only with our company (FES company offering energy-saving services), and then we negotiate with sub-suppliers and enter into relevant contracts and are responsible for the entire project management.
During the creation of the project we are in contact with the customer and consult various options and proposals together, while taking into account the customer requirements and needs. If the customer disapproves of any solution, then it is not used in the project.
We are fully responsible for the project success. We guarantee that the energy savings will be suffi cient to cover all costs of the project during the established time period. We are also responsible for all debts that may be acquired in connection with the application of low-effi ciency or ineffi cient measures.
We fi nance the entire project. We can use our own resources or apply for loans at fi nancial institutions. If we use our own resources, the customer does not have any debt in the traditional way of understanding. The customer will pay us only if the applicable savings have been reached.
The customer – the user of the energy – does not need to have any capital to fi nance the project. Funds to fi nance the project will be provided by the achieved energy savings. Achieved savings will be used to cover future payments.
Offered services
Our goal is to fi nd economically usable energy savings, implement the necessary technical measures while providing comprehensive investments and services, and if necessary to provide investment funds through syndicated loans. This will provide the customer with a comprehensive solution to his energy problems and will guarantee the success of the project.
- Identifi cation of ineffective energy use (analysis of energy costs and balancing sheets from previous years).
- Proposal and recommendation of measures, which will create future energy savings (investment issues, organizational methods).
- Installation and start-up of technological equipment.
- Operating personnel training.
- Equipment inspection, maintenance and service.
- Energy consumption measurements and establishment of cost saving measures.
During the fulfi lment of the project we are ready to bring your employees into our team.
EC method – supply of energy for guaranteed price, without involvement of any customer investments
The basic principle of EC (Energy Contracting) is based on the fact that the customer pays for the completed energy management project by actually using the energy he needs (usually heat electric power) under clearly defi ned conditions and pays for the used energy according to the approved contractual model. This allows the customer to realize his energy management project without using any funds, plus some of the risks involved in the project are taken over by the company which is implementing the project. Very often these projects are based on the so-called „two-component heat price“. If the guarantee for the heat energy is to be complied with then the maximum amount of the movable component of the heat price must be established (specifi ed as CZK/GJ), while observing the pre-established entry cost requirements.
The Energy supply contract which focuses and solves basic issues of the business relation between the provider and the customer is concluded for the relevant time, necessary to pay off the project acquisition cost.
Energy services included in the EC method:
- proposal of measures and recommendations focusing on customer energy supply requirements;
- financing of the entire project;
- turnkey project delivery and equipment start-up;
- maintenance and operation of the equipment throughout the time during which the project is being paid for (that is the time period for which the Energy supply contract has been concluded);
- energy delivery (heat, electric power, natural gas) pursuant to the energy supply contract
Guarantees provided by both parties are necessary for mutual success:
- The customer guarantees that throughout the duration of the contract he will maintain the same scope of his operations (that is he will comply with the minimum energy (heat) use requirements - as „before the project „).
• - Our company guarantees that it will supply energy (heat) in the established amounts and for the price specifi ed in the contract. We are also aware about the principle of a long-term price establishment for the supplied energy (heat).
Our company invests its own funds into the relevant project and requests the customer to continuously and gradually pay for the provided funds in the form of payments for the used heat or electric power.
Payments for the project are done only in the form of payments for the supplied energy. Both the income and the profi t directly depend on the reduction of the cost for the supplied energy that means, reduction of own operational cost.