ESCO concept State of Israel Ministry of National Infrastructure December 13, 2004
Your Trainer Pierre Baillargeon Professional Engineer   Vice-President Services & Technologies   Econoler International   ...
<ul><li>Introduction and </li></ul><ul><li>Overview of the ESCO concept </li></ul>
The mission of an ESCO Implement energy efficiency project, while removing barriers
What is an Energy Service Company, an ESCO ? <ul><li>An Energy Service Company provides: </li></ul><ul><li>The identificat...
What is an energy performance contract ? <ul><li>A project implementation contract </li></ul><ul><ul><li>With a guarantee ...
Why use an energy performance contract ? <ul><li>It help the realisation of projects for which $$$ may not otherwise be av...
Energy performance contracting is also known as: <ul><li>Third party financing (Europe) </li></ul><ul><li>Savings financin...
Do ESCO always finance? <ul><li>The ESCO may provide the financing or arrange financing. </li></ul><ul><ul><li>Provide = I...
The skills of an ESCO Technical IGA Engineering M&V Training and Management Support Project Management Construction Manage...
ESCO resources <ul><li>Business administrators </li></ul><ul><ul><li>Direction </li></ul></ul><ul><ul><li>Sales and Develo...
Difference between audits <ul><li>Traditional energy audits </li></ul><ul><ul><li>Consulting engineers are typically paid ...
Focus on energy efficient technologies <ul><li>An ESCO focus on high efficiency technologies : </li></ul><ul><ul><li>Effic...
Key attributes of ESCOs <ul><li>Flexibility: ability to offer various implementation and contractual services specific to ...
Is ESCO a proven concept? (short history) <ul><li>80’s: Oil crisis </li></ul><ul><ul><li>Energy price increase </li></ul><...
<ul><li>Context for the development of ESCOs: </li></ul><ul><ul><li>Promotion of energy savings by utilities </li></ul></u...
<ul><li>1980 Establishment of the first ESCOs in Canada, the UK and the U.S.A. </li></ul><ul><li>1982 Interest from the US...
Actual status of ESCOs <ul><li>World Bank actively support the creation of ESCOs is several countries (China, India, Brasi...
Actual status of ESCOs <ul><li>In USA </li></ul><ul><ul><li>30 active ESCOs </li></ul></ul><ul><ul><li>installed cost of E...
ESCO success story <ul><li>South Korea: Samsung corporation </li></ul><ul><li>Launched in March 1989 </li></ul><ul><li>Ach...
What type of company become ESCOs ? <ul><li>Engineering firms </li></ul><ul><li>Contractors </li></ul><ul><li>Equipment ma...
Examples of ESCOs <ul><li>Utility based ESCOs; EDP corporate (Portugal), HEP ESCO (Croatia) </li></ul><ul><li>Manufacturer...
Barriers to Energy Efficiency in Israel?
Barriers to energy efficiency <ul><li>Client behaviour </li></ul><ul><li>Lack of knowledge about, or experience with, appr...
Barriers to energy efficiency <ul><li>Financial </li></ul><ul><li>Limited availability of capital </li></ul><ul><li>Lookin...
Workshop Why a client should deal with an ESCO ? Develop a marketing promotion rationale 15 minutes
Why a client should deal with an ESCO ? <ul><li>Resources </li></ul><ul><ul><li>Customer may have the skills or the human ...
Why deal with an ESCO ? <ul><li>Services offered by a single organization </li></ul><ul><li>Proven concept </li></ul><ul><...
Why deal with an ESCO ? <ul><li>Customers react to different selling rationales </li></ul><ul><ul><li>Control operating co...
Why deal with an ESCO ? <ul><li>Selling customer react to different stimulis (cont’d) </li></ul><ul><ul><li>Easier operati...
Why a client should deal with an ESCO ? <ul><li>Financing scheme (if ESCO finance) </li></ul><ul><ul><li>No capital invest...
Integrated approach of ESCOs <ul><li>Traditional approach </li></ul><ul><ul><li>Step by step process for measure identific...
The traditional approach Professional  consulting  engineer Contractors Equipment  manufacturers Governments Financial  in...
The ESCO approach Professional  consulting  engineer Contractors Equipment  manufac- turers Governments Financial  institu...
Others services provided by ESCOs <ul><li>Integrate in project the grant from DSM or government programs </li></ul><ul><li...
Base requirement for  a project Ability to clearly define and to precisely measure monetary savings
Project  steps <ul><li>Preliminary audit </li></ul><ul><li>Investment grade audit - analysis of measures </li></ul><ul><li...
Financial obligations <ul><li>Phase </li></ul><ul><li>Preliminary audit </li></ul><ul><li>Investment grade energy audit </...
Preliminary audit <ul><li>Actions </li></ul><ul><li>On-site visit </li></ul><ul><li>Analysis </li></ul><ul><li>Report </li...
Preliminary audit :  Spontaneous proposal Preliminary audit Potential ? End Report IGA contract No Yes Modality of the IGA...
Preliminary study :  request for proposals Preliminary study Potential ? Some ESCOs abandon Detailed proposition Contract ...
Preliminary audit overview <ul><li>2 to 5 persons-day from ESCO </li></ul><ul><li>Collection and analysis of utility bills...
Energy audit IGA   Report   Finalisation  of the implementation contract Results Confirmed ? Payback or savings limit The ...
Investment grade audit Overview <ul><li>1 to 3 months-men for completion </li></ul><ul><li>13 000 USD to 27 000 USD </li><...
The Energy Performance Contract (EPC) <ul><li>The energy performance contract takes from 1 to 3 months to negotiate </li><...
Implementation of measures Engineering (Drawings and Specifications) Call for tenders Construction (Supervision or Direct)...
Implementation overview <ul><li>Implementation = Installation </li></ul><ul><li>May take up to one year </li></ul><ul><li>...
Reimbursement period and M&V Specific training General training Energy Committee Awareness Campaign Optimisation measures ...
Measurement and Verification (M&V) <ul><li>Measurement and Verification (M&V) methodologies </li></ul><ul><ul><li>Integral...
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מצגת מבוא על אסקו

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  • מצגת מבוא על אסקו

    1. 1. ESCO concept State of Israel Ministry of National Infrastructure December 13, 2004
    2. 2. Your Trainer Pierre Baillargeon Professional Engineer Vice-President Services & Technologies Econoler International 160 St-Paul street, suite 200, Québec, Québec, Canada, G1K 3W1 www.econolerint.com [email_address] tel: (418) 692-2592 fax: (418) 692-4899
    3. 3. <ul><li>Introduction and </li></ul><ul><li>Overview of the ESCO concept </li></ul>
    4. 4. The mission of an ESCO Implement energy efficiency project, while removing barriers
    5. 5. What is an Energy Service Company, an ESCO ? <ul><li>An Energy Service Company provides: </li></ul><ul><li>The identification of project </li></ul><ul><li>The feasibility study </li></ul><ul><li>The conception (engineering) </li></ul><ul><li>The financing (sometimes) </li></ul><ul><li>The implementation (management or direct) </li></ul><ul><li>The measurement and verification of savings </li></ul><ul><li>A form of guarantee of savings </li></ul><ul><li>… By way of a contract between the ESCO and the client, therefore… </li></ul><ul><li>it is a performance contract </li></ul>
    6. 6. What is an energy performance contract ? <ul><li>A project implementation contract </li></ul><ul><ul><li>With a guarantee that it will be reimbursed (in part or in totality) from energy savings </li></ul></ul><ul><li>The guarantee can takes multiple form </li></ul><ul><ul><li>Complete guarantee that all project cost and financing will be reimbursed from savings </li></ul></ul><ul><ul><li>Partial guarantee on the quantity of savings (ex; 80% of expected results) </li></ul></ul><ul><ul><li>Guarantee that the customer will not pay more than a certain amount over the cost of equipment financing </li></ul></ul>
    7. 7. Why use an energy performance contract ? <ul><li>It help the realisation of projects for which $$$ may not otherwise be available for customers </li></ul><ul><ul><li>Depend of financing scheme and guarantee asked by ESCO </li></ul></ul><ul><li>It mobilises private capital </li></ul><ul><li>It insures that savings will be realised in a certain time frame </li></ul><ul><li>Customer may not be confident about the quantity of savings </li></ul>
    8. 8. Energy performance contracting is also known as: <ul><li>Third party financing (Europe) </li></ul><ul><li>Savings financing </li></ul><ul><li>Sustainable mechanism </li></ul><ul><li>Innovative financing </li></ul>
    9. 9. Do ESCO always finance? <ul><li>The ESCO may provide the financing or arrange financing. </li></ul><ul><ul><li>Provide = Internal funds or from his own financial institution </li></ul></ul><ul><ul><li>Arrange = It help the customer to obtain a suitable financing agreement with lenders </li></ul></ul><ul><ul><ul><li>Most ESCO do not have large internal financing resource. They are not banks. </li></ul></ul></ul>
    10. 10. The skills of an ESCO Technical IGA Engineering M&V Training and Management Support Project Management Construction Management Or Execution Financial Direct Financing Or Arrangements Operation & Maintenance (Sometimes) Risk Management For guarantee of savings And for cost and delay control Development Sales Marketing Legal Contracts Local regulations
    11. 11. ESCO resources <ul><li>Business administrators </li></ul><ul><ul><li>Direction </li></ul></ul><ul><ul><li>Sales and Development </li></ul></ul><ul><li>Engineers and technicians </li></ul><ul><ul><li>Project Development engineers </li></ul></ul><ul><ul><li>Energy specialists for feasibility study </li></ul></ul><ul><ul><li>Designers for drawing and specification </li></ul></ul><ul><ul><li>Project managers </li></ul></ul><ul><ul><li>Operation and Maintenance </li></ul></ul><ul><li>Workers </li></ul><ul><ul><li>Project implementation </li></ul></ul><ul><li>Economist and Accountants </li></ul><ul><li>Legal advisors (often external) </li></ul><ul><li>Support personnel </li></ul><ul><li>Each ESCO select its business model and decide what services are provided by internal resources and which by external ones </li></ul>
    12. 12. Difference between audits <ul><li>Traditional energy audits </li></ul><ul><ul><li>Consulting engineers are typically paid for their advice (energy audit) rather than being paid for the results their recommendations may yield. They are not liable of the final energy savings generated by a project. </li></ul></ul><ul><li>Investment Grade Audit </li></ul><ul><ul><li>An ESCO offers performance based projects. The payment is related to the amount of energy saved. The ESCO payment is at risk. A maximum cost may also be fixed by contract. The ESCO cost overrun risk also. They perform Investment grade audit </li></ul></ul><ul><ul><li>Investment grade audit cost typically 30% to 50% more than traditional energy audit </li></ul></ul>
    13. 13. Focus on energy efficient technologies <ul><li>An ESCO focus on high efficiency technologies : </li></ul><ul><ul><li>Efficient lighting </li></ul></ul><ul><ul><li>Ice storage system </li></ul></ul><ul><ul><li>Solar heat gain control film </li></ul></ul><ul><ul><li>Low excess air burner </li></ul></ul><ul><ul><li>Condensing boiler </li></ul></ul><ul><ul><li>Variable Speed Drive </li></ul></ul><ul><ul><li>Heat Pump </li></ul></ul><ul><ul><li>Geothermal </li></ul></ul><ul><ul><li>So they often realize project more advanced in technology than engineering firms that specialize on building construction </li></ul></ul>
    14. 14. Key attributes of ESCOs <ul><li>Flexibility: ability to offer various implementation and contractual services specific to a customer </li></ul><ul><li>Targeting: ability to target specific customer or group </li></ul><ul><li>Integration; ability to develop, implement and verify the result of a project </li></ul>
    15. 15. Is ESCO a proven concept? (short history) <ul><li>80’s: Oil crisis </li></ul><ul><ul><li>Energy price increase </li></ul></ul><ul><ul><li>Scarcity of energy sources </li></ul></ul><ul><ul><li>General concern </li></ul></ul><ul><li>Reaction: </li></ul><ul><ul><li>Energy savings introduced </li></ul></ul><ul><ul><ul><li>Weather stripping </li></ul></ul></ul><ul><ul><ul><li>Re-lamping </li></ul></ul></ul><ul><ul><ul><li>Repairing HVAC </li></ul></ul></ul><ul><ul><ul><li>Conversion of fuel sources: electricity, natural gas and biomass </li></ul></ul></ul><ul><ul><li>Establishment of ESCOs </li></ul></ul>
    16. 16. <ul><li>Context for the development of ESCOs: </li></ul><ul><ul><li>Promotion of energy savings by utilities </li></ul></ul><ul><ul><li>Government interest to reduce energy cost or importation of fuels. </li></ul></ul><ul><ul><li>Excessive debt of enterprise: difficulty to borrow </li></ul></ul><ul><ul><li>Recession in America </li></ul></ul><ul><li>Solutions implemented: </li></ul><ul><ul><li>Government: Support for energy efficiency project </li></ul></ul><ul><ul><li>Banks: research of new financing niche </li></ul></ul><ul><ul><li>Utility: energy efficiency programme (DSM) </li></ul></ul>Is ESCO a proven concept? (short history)
    17. 17. <ul><li>1980 Establishment of the first ESCOs in Canada, the UK and the U.S.A. </li></ul><ul><li>1982 Interest from the US Government </li></ul><ul><li>1983 NAESCO (USA) </li></ul><ul><li>1984 Europe : France – Belgium </li></ul><ul><li>1985 Spain and Portugal </li></ul><ul><li>1986 Asia : Singapour – South Korea </li></ul><ul><li>1987 CAESCO (Canada) </li></ul><ul><li>1993 Initiatives in federal buildings (Canada) </li></ul>Is ESCO a proven concept? (short history)
    18. 18. Actual status of ESCOs <ul><li>World Bank actively support the creation of ESCOs is several countries (China, India, Brasil) </li></ul><ul><li>200 million US $ invested in Europe by EBRD </li></ul><ul><li>In Canada: Government program </li></ul><ul><ul><li>Federal Building Initiatives (FBI): </li></ul></ul><ul><ul><ul><li>70 contracts covering 6,500 facilities </li></ul></ul></ul><ul><ul><li>30 active enterprises </li></ul></ul><ul><ul><li>280 million CDN $ invested </li></ul></ul><ul><ul><li>35 million CDN savings generated </li></ul></ul><ul><li>150 millions CDN $ invested in Québec </li></ul>
    19. 19. Actual status of ESCOs <ul><li>In USA </li></ul><ul><ul><li>30 active ESCOs </li></ul></ul><ul><ul><li>installed cost of ESCO projects : 2,3 billion US $ </li></ul></ul><ul><ul><li>350 millions USD invested with NAESCO </li></ul></ul><ul><li>In the U.K. </li></ul><ul><ul><li>20 active ESCOs </li></ul></ul><ul><ul><li>total contracts : 300-500 million USD/year </li></ul></ul>
    20. 20. ESCO success story <ul><li>South Korea: Samsung corporation </li></ul><ul><li>Launched in March 1989 </li></ul><ul><li>Achievements : </li></ul><ul><ul><li>first ice storage systems in South Korea </li></ul></ul><ul><ul><li>lobbying with the government </li></ul></ul><ul><ul><li>1991 ice storage mandatory for new buildings </li></ul></ul><ul><ul><li>first implementation of efficient lighting: 32 W with electronic ballast </li></ul></ul><ul><ul><li>start-up of local manufacturing for ice storage systems and efficient lighting </li></ul></ul><ul><ul><li>Awarded a presidential prize </li></ul></ul>
    21. 21. What type of company become ESCOs ? <ul><li>Engineering firms </li></ul><ul><li>Contractors </li></ul><ul><li>Equipment manufacturers </li></ul><ul><li>Integrated Utilities </li></ul><ul><li>Energy distribution company (gas, electricity, district heating) </li></ul><ul><li>Real estate management company </li></ul><ul><li>Holding companies </li></ul>
    22. 22. Examples of ESCOs <ul><li>Utility based ESCOs; EDP corporate (Portugal), HEP ESCO (Croatia) </li></ul><ul><li>Manufacturers: Honeywell Inc. and Johnson Controls Inc. </li></ul><ul><li>Energy Performance Services Inc. (USA) </li></ul><ul><li>Compagnie Générale de Chauffe (District Heating), in France and 20 countries </li></ul>
    23. 23. Barriers to Energy Efficiency in Israel?
    24. 24. Barriers to energy efficiency <ul><li>Client behaviour </li></ul><ul><li>Lack of knowledge about, or experience with, appropriate efficiency technologies </li></ul><ul><li>Lack of motivation </li></ul><ul><li>Management priorities </li></ul><ul><li>Energy constitutes only a small portion of total cost: low priority </li></ul>
    25. 25. Barriers to energy efficiency <ul><li>Financial </li></ul><ul><li>Limited availability of capital </li></ul><ul><li>Looking for fast paybacks on investments </li></ul><ul><li>High transaction cost related to identification and installation of energy efficient equipment </li></ul>
    26. 26. Workshop Why a client should deal with an ESCO ? Develop a marketing promotion rationale 15 minutes
    27. 27. Why a client should deal with an ESCO ? <ul><li>Resources </li></ul><ul><ul><li>Customer may have the skills or the human resources but not the time </li></ul></ul><ul><li>Experience and focus </li></ul><ul><ul><li>An ESCO is specialised in the packaging and the implementation of energy projects </li></ul></ul><ul><li>Guaranteed results </li></ul><ul><ul><li>Payment is tied to project successful completion and demonstration of energy savings </li></ul></ul>
    28. 28. Why deal with an ESCO ? <ul><li>Services offered by a single organization </li></ul><ul><li>Proven concept </li></ul><ul><ul><li>Proven approach for 20 years </li></ul></ul><ul><ul><li>Project realisation by experts in energy efficiency </li></ul></ul><ul><li>Faster implementation </li></ul><ul><ul><li>Customer may realize project at his own pace but ESCO can fasten the implementation and make the savings available earlier. </li></ul></ul>
    29. 29. Why deal with an ESCO ? <ul><li>Customers react to different selling rationales </li></ul><ul><ul><li>Control operating cost </li></ul></ul><ul><ul><ul><li>Immediate and guaranteed savings </li></ul></ul></ul><ul><ul><ul><li>Utility cost reduction </li></ul></ul></ul><ul><ul><ul><li>Cost control instead of cost increase </li></ul></ul></ul><ul><ul><li>Replace old equipment </li></ul></ul><ul><ul><li>Low risk: monitoring of the measures implemented </li></ul></ul><ul><ul><li>Employee skill increase and improvement of working conditions </li></ul></ul><ul><ul><li>Added value for an enterprise </li></ul></ul>
    30. 30. Why deal with an ESCO ? <ul><li>Selling customer react to different stimulis (cont’d) </li></ul><ul><ul><li>Easier operation of facility with improved control systems </li></ul></ul><ul><ul><li>Lower maintenance </li></ul></ul><ul><ul><li>Green image for the facility </li></ul></ul><ul><ul><li>Objective fixed by the higher management </li></ul></ul><ul><ul><li>Be the first to realize a project with an innovative approach </li></ul></ul><ul><ul><li>Solve comfort problem </li></ul></ul>
    31. 31. Why a client should deal with an ESCO ? <ul><li>Financing scheme (if ESCO finance) </li></ul><ul><ul><li>No capital investment required immediately for the customer </li></ul></ul><ul><ul><li>Cash flow neutral </li></ul></ul><ul><ul><li>Access to off-balance sheet financing (sometimes) </li></ul></ul><ul><ul><li>His capital is available for other priorities </li></ul></ul><ul><ul><li>Financing should be the last reason to award an Energy Performance Contract. Every project should stand on its own merit. Financing allows the realisation of good projects in good organization for which $ would not otherwise be available </li></ul></ul>
    32. 32. Integrated approach of ESCOs <ul><li>Traditional approach </li></ul><ul><ul><li>Step by step process for measure identification, design, implementation </li></ul></ul><ul><ul><li>Several smaller energy efficiency projects </li></ul></ul><ul><li>ESCO approach </li></ul><ul><ul><li>Energy performance contracting, an integrated solution </li></ul></ul><ul><ul><li>Comprehensive project with all cost effective energy efficiency measures implemented. </li></ul></ul>
    33. 33. The traditional approach Professional consulting engineer Contractors Equipment manufacturers Governments Financial institutions Energy Suppliers Client
    34. 34. The ESCO approach Professional consulting engineer Contractors Equipment manufac- turers Governments Financial institutions Energy Suppliers Client <ul><li>Integrated </li></ul><ul><ul><li>Analysis </li></ul></ul><ul><ul><li>Design </li></ul></ul><ul><ul><li>Installation </li></ul></ul><ul><ul><li>Financing </li></ul></ul><ul><ul><li>Monitoring </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Guarantee </li></ul></ul>ESCO
    35. 35. Others services provided by ESCOs <ul><li>Integrate in project the grant from DSM or government programs </li></ul><ul><li>Indoor air quality improvement </li></ul><ul><li>Renewable energy and cogeneration </li></ul><ul><li>GHG reduction and carbon asset development </li></ul><ul><li>Technology transfer </li></ul>
    36. 36. Base requirement for a project Ability to clearly define and to precisely measure monetary savings
    37. 37. Project steps <ul><li>Preliminary audit </li></ul><ul><li>Investment grade audit - analysis of measures </li></ul><ul><li>Investment program selection </li></ul><ul><li>Financial evaluation and arrangements </li></ul><ul><li>Implementation contract finalization </li></ul><ul><li>Implementation of measures </li></ul><ul><li>Reimbursement periods and M&V </li></ul>
    38. 38. Financial obligations <ul><li>Phase </li></ul><ul><li>Preliminary audit </li></ul><ul><li>Investment grade energy audit </li></ul><ul><ul><li>Esco declines </li></ul></ul><ul><ul><li>client declines </li></ul></ul><ul><ul><li>client accepts </li></ul></ul><ul><li>Implementation </li></ul><ul><li>M&V period </li></ul><ul><li>Cost to client </li></ul><ul><li>Usually none </li></ul><ul><li>No charge to customer </li></ul><ul><li>Study cost to be paid </li></ul><ul><li>cost rolled in project cost </li></ul><ul><li>Construction cost rolled into project cost </li></ul><ul><li>Reimbursement from savings </li></ul>
    39. 39. Preliminary audit <ul><li>Actions </li></ul><ul><li>On-site visit </li></ul><ul><li>Analysis </li></ul><ul><li>Report </li></ul><ul><li>Letter of intent or study contract </li></ul><ul><li>Results </li></ul><ul><li>Identify measures </li></ul><ul><li>Technical and economic feasibility </li></ul><ul><li>Present project opportunities </li></ul><ul><li>Initiate Investment grade audit </li></ul>
    40. 40. Preliminary audit : Spontaneous proposal Preliminary audit Potential ? End Report IGA contract No Yes Modality of the IGA and contract signature Yes No Decision
    41. 41. Preliminary study : request for proposals Preliminary study Potential ? Some ESCOs abandon Detailed proposition Contract negotiation No Yes <ul><li>Technical concept </li></ul><ul><li>Savings </li></ul><ul><li>Costs </li></ul>Client select one ESCO Difficult to establish equitable criteria
    42. 42. Preliminary audit overview <ul><li>2 to 5 persons-day from ESCO </li></ul><ul><li>Collection and analysis of utility bills </li></ul><ul><li>Comparison with similar buildings </li></ul><ul><li>Physical inspection and identification of major systems </li></ul><ul><li>Interviews with operators and managers </li></ul><ul><li>Identification of measures </li></ul><ul><li>Establish approximate savings and payback </li></ul>
    43. 43. Energy audit IGA Report Finalisation of the implementation contract Results Confirmed ? Payback or savings limit The client can abandon No Yes Financing arrangements
    44. 44. Investment grade audit Overview <ul><li>1 to 3 months-men for completion </li></ul><ul><li>13 000 USD to 27 000 USD </li></ul><ul><ul><li>For a 250,000 USD- 500,000 USD project </li></ul></ul><ul><ul><li>For an IGA, the key parameters must be verified by measurements </li></ul></ul><ul><ul><ul><li>existing drawing and specs are not sufficient </li></ul></ul></ul><ul><li>Cost must be confirmed with contractors and suppliers </li></ul>
    45. 45. The Energy Performance Contract (EPC) <ul><li>The energy performance contract takes from 1 to 3 months to negotiate </li></ul><ul><li>It depends on the decision making process of the customer </li></ul><ul><li>It is a personal contract </li></ul><ul><li>It is important to understand each other’s responsibilities and concerns </li></ul>
    46. 46. Implementation of measures Engineering (Drawings and Specifications) Call for tenders Construction (Supervision or Direct) Work acceptation Project Management Start the reimbursement period
    47. 47. Implementation overview <ul><li>Implementation = Installation </li></ul><ul><li>May take up to one year </li></ul><ul><li>Similar to the construction process for others type of work </li></ul><ul><li>Implementation of new operational procedures </li></ul><ul><li>Training of operational staff </li></ul>
    48. 48. Reimbursement period and M&V Specific training General training Energy Committee Awareness Campaign Optimisation measures Energy management Exploitation by the ESCO Maintenance by the ESCO Savings Evaluation (M&V) Hands-on training or ORGANIZATION OPERATIONS FOLLOW-UP
    49. 49. Measurement and Verification (M&V) <ul><li>Measurement and Verification (M&V) methodologies </li></ul><ul><ul><li>Integral component of a successful implementation of projects. </li></ul></ul><ul><ul><li>Objective: determine energy savings by comparing the baseline energy use with post-installation use. </li></ul></ul><ul><ul><li>Allow dispute-free, unambiguous calculations of savings </li></ul></ul><ul><ul><li>Help both the end-users and the financial community to understand this key dimension of performance contracts </li></ul></ul>

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