Strategy EI4.6: Assist local governments with evaluating opportunities for Energy-Saving Performance Contracts.
Energy-Saving Performance Contracting is a method of financing capital projects that upgrade the energy efficiency of building structures and systems. A single procurement contract covers the engineering, construction, installation, start-up, operational measurement, and verification of improvement that will yield significant energy savings over time. In an Energy-Saving Performance Contract, the selected contractor (termed Energy Service Company, or ESCO) guarantees the local government system a minimum level of energy cost savings. These guaranteed cost savings support both the yearly fees and the debt obligation of the local government system to finance the project.
Additional Information / Case Studies
Waste Reduction Partners Fact Sheet for Local Governments
Waste Reduction Partners Performance Contracting tool kit for K-12, local governments, and community colleges