Energy performance contracting
Building modernization financed through guaranteed savings.
The only way to ensure that buildings don’t waste energy is to equip them with the latest building technology and make sure that all their technical systems interoperate efficiently. In many buildings, outdated installations and equipment are a major cause of high energy consumption and harmful climate emissions. In cases like this, large-scale modernization can help to improve buildings’ energy performance. However, buildings often fail to live up to operators’ expectations in terms of cost efficiency and comfort, even after they’ve been fitted with innovative technology.
Projects that finance themselves
Modernization work can often tie up capital that might be needed more urgently or could be put to better use elsewhere. Here, Siemens’ energy performance contracting offers an answer. With this approach, modernization work can be carried out without the need for customer capital expenditure or an immediate cash-out, because the investment costs are covered by the energy savings. Customers later benefit 100 percent from the reduction in their building’s operating costs, and the modernization work on their property can boost its value too.
In energy performance contracting, we begin by sitting down with the customer to define a project schedule. We then identify suitable buildings and conduct a preliminary study to estimate their potential energy savings. The latter are assessed in detail in a second study that also determines the measures required and their cost-effectiveness. An energy performance guarantee agreement is then signed with the customer, and the process of planning, delivery and installation can begin.
Once the work is completed, the efficiency guarantee comes into force. During this phase, reports on the energy savings achieved are prepared at regular intervals to ensure that targets are met. This requires precise monitoring of building installations so as to ensure that the savings guarantee is upheld and to enable installations to be fine-tuned for optimum operation.
With the energy savings achieved through energy performance contracting, we and our customers are making an important contribution toward protecting the environment. In more than 1,000 such projects worldwide we helped customers to save around 15.9 TWh of energy.
| Increased property value through modernization |
| Facility investments paid from energy savings |
| Risk-free, thanks to performance guarantee |
| Guarantee covers entire contractual period |
| Sustained quality assurance through professional energy management |
| Assured financing |
| Significant energy savings |
| Lower CO2 emissions |
| Reduction of other emissions (nitrogen oxide, dust, etc.) |
2011-Mar-17 | Author
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