EFFECT4buildings EPC tool

Published on 18 November 2020

Norway

About this good practice

The Interreg project EFFECT4buildings has developed a toolbox of financial tools and instruments for implementing more energy efficiency measures in buildings. The target group is building managers.
Energy Performance Contracting (EPC) is a well-tested and successful tool that has been helping building owners reach their energy and climate targets more quickly than with traditional implementation of energy saving measures.
EPC is a model for implementation of Energy Efficiency (EE) measures with guaranteed results in public and private buildings. In EPC projects, energy savings are used to cover investment costs. Both technical and financial risks are hence outsourced to an Energy Service Company (ESCO), also called the EPC supplier. EPC is used to implement a high number of EE measures within a short time period.
Still there is potential for more use of EPC to reach unrealised saving potential in public sector, but there is no designated legal framework for EPC in the partner countries, expectations from the project can hence differ a great deal from country to country.
The tool includes an improved implementation model focusing on the first two phases of the EPC process, the start-up and tender phase (0) and the energy analyses and project development phase (1). This is because these two phases are critical for the choices and decisions that form the basis for failure or success in the implementation (2) and guarantee (3) phases.

Resources needed

Implement an EPC project needs enough destinated resources to be successful. The most common failure in evaluations show that building owners regret not having had enough involvement in the planning face.

Evidence of success

Its improved implementation will help reach climate and energy targets at a faster rate and speed compared to the use of inhouse public resources. An assessment carried out by Enova in Norway based on 252 energy saving projects shows that 80 % of the municipalities implementing EPC reached their energy reduction goals, while only 13 % of the municipals using traditional projects did the same.
The new implementation model has been tested in Denmark with success.

Potential for learning or transfer

The tool has been developed with the aim to make them possible to adapt in all (European) countries. The potential for transferring best practise to other regions is supported by clear guidelines, templates and training materials.
Please visit project website www.effect4buildings.se to explore the full toolbox.