Cashflow Energy Performance Services Project by apr33488

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									                                      Energy Performance Contracting
                                      Energy Performance Contracting is an innovative approach to energy
OPI/ Energy Performance Contracting




                                      contracting that offers your organisation a low risk opportunity to reduce
                                      energy costs for zero up-front capital outlay, with guaranteed savings
                                      contributing to improved bottom-line performance.

                                      Why Choose Energy Performance            • Development of a strategy for             Where can a performance contract be
                                      Contracting?                               negotiating both a letter of intent       applied?
                                                                                 and the contract,
                                      In an increasingly competitive           • Knowledge of elements to be               Energy Performance Contracting has
                                      business environment, all aspects of       considered in the contract,               been successfully applied in numerous
                                      business compete for often limited         particularly the allocation of risk and   types of organisation, for example:
                                      funds to increase efficiency and           the appropriate measurement and           • Public and institutional facilities
                                      improve productivity. Engineering          reporting procedures.                       including government buildings and
                                      services are not often seen as part of   Energetics can facilitate any or all of       health departments,
                                      core business, with the result that      the above elements of an EPC.               • Industrial plants,
                                      major plant upgrades or new service                                                  • Owned and leased Commercial premises
                                      installations are frequently             What is Energy Performance
                                      overlooked, even though they may         contracting?                                Your ability to enter into an EPC is not
                                      offer extremely attractive returns on    Energy Performance Contracting (EPC)        determined by the size of your energy bill
                                      investment.                              can deliver low cost energy at no initial   or by the size of your central energy
                                                                               cost and reduce maintenance and             plant. Rather, it is determined by the
                                      Even when large projects do proceed,
                                                                               labour costs. The concept is simple; if     need to improve your existing facility’s
                                      lowest capital cost is often the major
                                                                               the contractor does not perform, you        services and to achieve a good return on
                                      determining factor, with the result
                                                                               don't pay.                                  the money you have invested. Economies
                                      that design and operating efficiency
                                                                                                                           of scale often favour ‘bundling’ of several
                                      are compromised. High maintenance
                                                                               An EPC is a negotiated contract             facilities and/or services into a single
                                      costs and high recurrent costs for
                                                                               between you and the contractor that         contract, which can provide similar
                                      energy are a typical outcome.
                                                                               guarantees a level of performance that      benefits to an EPC on a single, large site
                                      Who Should You Choose to Help            is measured in terms of energy and          or service.
                                      Implement an EPC?                        operational savings. The contract
                                                                               represents a commitment to a long-              Steps to a Successful EPC
                                      Energetics has extensive experience in   term relationship between you and the           1. Expression of interest
                                      facilitating the planning, negotiation   performance contractor, where the               2. Request for proposal
                                      and implementation of energy             contractor is tied to performance and
                                                                                                                               3. Letter of intent / detailed
                                      performance contracts. Our approach,     accountability by the inclusion of a
                                                                                                                                   feasibility study agreement
                                      developed through experience in          written guarantee. You therefore pay
                                                                                                                               4. EPC
                                      Australia, Canada & the USA, is          for results, and not simply a product or
                                                                                                                               5. Treasury Funding
                                      customised to help our customers get     a service.
                                      maximum value out of their
                                      performance contracts for minimum        Some of the major benefits that your
                                      risk.                                    organisation can realise include:
                                                                               • Improved bottom line performance,                                          Contact
                                      In order to be successful, your EPC      • Performance Contractor is                                             John Annas
                                      requires a certain amount of planning.     accountable for the savings - all
                                                                                                                                                     Patrick Denvir
                                      This may include:                          ongoing savings are retained,
                                                                                                                                                    02 9929 3911
                                                                               • Significant operational savings,
                                      Broad assessment of the financial and                                                                  epc@energetics.com.au
                                                                               • Positive or neutral cashflow structures
                                      technical scope of work,                                                                               www.energetics.com.au
                                                                                 and elimination of up-front capital
                                      • Knowledge of what an EPC is and of
                                                                                 outlay,
                                        the performance contractors
                                                                               • Exposure to advanced technologies,
                                        servicing the market,
                                                                                 and efficient and reliable equipment
                                      • Design of a tendering and evaluation
                                                                               • Improved productivity and increased
                                        process to select the ‘right person
                                                                                 asset life through maintenance of key
                                        for the job’,
                                                                                 equipment, and
                                                                               • Achievement of greenhouse gas
                                                                                 abatement targets.
                                                EPC – Features & Benefits…
                                                   Here are the Features of our     Here are the Benefits to your        If you require more
OPI/Energy Performance Contracting/Features &




                                                   Energy Performance               organisation                         information, we can provide
                                                   Contract services                                                     the following…
                                                   Structured methodology           •   Select the right person          •   Outline of steps
                                                   •   Expression of Interest       •   You receive guidance through     •   Senior management
                                                   •   Request for Proposals            all procurement steps to             presentation
                                                   •   Proposals evaluation             contract signing                 •   Case studies
                                                   •   Detailed Feasibility Study   •   Transparency facilitates         •   Customer referrals
                                                   •   M&V protocols                    knowledge transfer to enable
                                                   •   Energy Performance               you manage your EPC
                                                       Contract
                                                   Energy review                    •   Knowledge of best practice       •   Customer referrals
                                                   •   Scope of work Independent        technologies                     •   Examples of recent
                                                       assessment of responses      •   You define your project, and         assignments
                                                                                        have something to compare
                                                                                        proposals with Confidence that
                                                                                        the proposed works are
                                                                                        feasible and likely to achieve
                                                                                        the benefits
                                                   Measurement & Verification       •   You acquire knowledge of M&V     •   Visit www.ipmvp.org
                                                   •   Knowledge of International       protocols that enables you to    •   Presentation of M&V options
                                                       protocols                        manage the EPC negotiation           and applicability to your
                                                   •   Review of M&V proposals          and ongoing performance              application
                                                   •   Post-implementation          •   Ongoing review gives you
                                                       independent review of M&V        confidence that savings
                                                       operation                        continue to be achieved
                                                   Education & Training             •   Management understands the       •   Presentation to senior
                                                   •   Regular communication at         benefits and is committed to         management
                                                       all management levels            the process
                                                   •   End-user consultation        •   Users understand and accept
                                                   •   Risk sharing                     changes
                                                                                    •   All significant risks are
                                                                                        identified and properly
                                                                                        allocated, minimising your
                                                                                        exposure
                                                   Finance options                  •   You can pay no up-front fee,     •   Information on typical costs
                                                   •   Third party finance              freeing up capital for other         and benefits
                                                   •   Cashflow structures              investments
                                                   •   Review of financial          •   You can plan repayments to
                                                       proposals                        meet cashflow needs
                                                                                    •   You are assured that financial
                                                                                        proposals treat costs and
                                                                                        benefits correctly, and no
                                                                                        hidden costs will arise
                                                                                    •   You will know what savings are
                                                                                        guaranteed and what savings
                                                                                        are your responsibility

								
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