1. Flexibility options in Energy performance contracts
Training module
Flexibility options in Energy performance contracts
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2. 1 2 3 3 flexibility options Ordinary termination of the contract
Simplified measurement and verification process (M & V)
Integration of public funding by the contractor 1 2 3
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3. Ordinary termination of the contract1
Problem:
Fear of being "locked up" in a long contract, → short contract periods, → limited scope of measures
Solution:
Additional paragraphs allowing regular termination of the contract, including compensation

4. 1 Such a paragraph should specify
Who has the right to terminate the contract; In the majority of cases, a premature termination by the customer will be desired
Earliest possible termination date
Length of the notice period
Compensation for the contracting party. The calculation of compensation should be as simple as possible; the compensation must also be high enough not to promote early termination too easily

5. 1
Compensation elements for the contractor (in case of termination by the customer):
The contractor can use all scheduled payments until the regular conclusion of the contract less the costs for maintenance, servicing and energy management.
The contractor may demand a lump sum of 10% for the profit loss of the regular contracting instalments until the end of the planned contract term.

6. Simplified Measurement & Verification Procedures (M & V)2
Facts:
M & V procedures are needed to determine if the EDL has met its performance guarantee
At the same time, M & V procedures are complex, costly and conflicting
Solutions: Simplified M & V for consumers <30%
Limitation on M & V before and after implementation
Agreement of arithmetical proof for subsequent periods
Measurements in subsequent years only at the request of the client
Cost of the measurements bears the privileged

7. Funding acquisition by the contractor3
Problem:
Subsidies are often "insecure" (budgets are limited, the jury has to decide ...) → it's a high risk to trust in the ESCO offer
ESCO applies for subsidies that benefit the customer only → low motivation on the ESCO side

8. Funding acquisition by the contractor3
Solution:
ESCO is responsible for raising public funds
All funds reduce the re-financing share of the customer
ESCO receives compensation for successfully received public money

9. More information on Thank you https://guarantee-project.eu/
22/02/2019