By Shirley J. Hansen
Seeing that functionality Contracting for power & Environmental structures was once released in 1992, the area of functionality contracting has replaced dramatically, notwithstanding the fundamental parts of profitable tasks stay an analogous. This publication tackles the enormous activity of delivering ''state of the art'' proof concerning the method, from financing, to dimension and verification, to hazard administration, with updated how-to's for either finish clients and effort provider businesses. you will find specialist suggestion on constructing RFPs and RFQs, pointers on making your power undertaking financeable, and guidance for successfully negotiating and constructing strength prone agreements. you will research the simplest thoughts for coping with dangers, either from a user's and a provider provider's perspective, in addition to how most sensible to make use of current size and verification instruments to evaluate undertaking functionality. additionally addressed are the globalization of strength carrier businesses, new monetary possibilities, the growth of functionality contracting into non-energy arenas, and the impression of software deregulation at the undefined. The publication presents a useful authoritative details source on utilizing functionality contracting as an optimal company answer for reaching power discounts.
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Additional info for Performance Contracting: Expanding Horizons. Second edition
The ESCO may provide services beyond energy efficiencies, wherein the energy cost savings may help defray the costs of this additional work. In other instances, the work may actually increase energy costs, but lower the energy cost per unit of product through process efficiencies. For example, the carpet curing procedures as discussed in Chapter 12 describes a situation where the energy costs went up; but with doubled production, the end result was a lower energy cost per unit of production. PUSHING THE ENVELOPE Clearly, the “bottom-line” encourages the commercial world to pursue energy efficiency, whether the business is a manufacturer, industrial complex, commercial offices, or residential properties.
The group should collectively weigh all the energy efficiency measures in the light of the financial benefits to the energy program and to the total operation. Time was when cost-effectiveness ruled nearly every energy efficiency decision. Payback was the critical parameter in auditing. Today, improving the work environment and determining which measures will bring the greatest value to existing assets have become important considerations. Two tin cans and a string are probably still more cost-effective in short distances than a cell phone, but few would opt for such an alternative.
Evaluating the qualifications of an energy service company usually requires a multiple disciplinary approach, including technical and financial expertise. The evaluation process, therefore, typically involves a committee. Unless the organization soliciting an ESCO’s services has in-house performance contracting experience, it pays to support the committee’s deliberations with a consultant. Before putting pen to paper, an honest appraisal of in-house capabilities to evaluate performance contractors’ qualifications is warranted.