Energy Performance Contract

Five biggest barriers to Energy Performance Contracts uptake

This is an invited post with the UK very involved Energy Expert, Viktar ZAITSAU.

Energy Performance Contract

Europa.eu

BRE reported that it has been assessed that the market of Energy Performance Contracts (EPC) in The UK is around £180m and that it is not forecasted to grow. It makes me wonder why.

Here is what I think. It is my take on the five biggest barriers to Energy Performance Contracts uptake:

  1. The No 1 on the list is complexity of the solution. The clients simply do not get, do not see the value of it or, which is even more often, the clients do not get enough trust and credibility in the sales force selling the Energy Performance Contracts. The thing is so new that they can’t compare it with anything they have dealt before.
  2. The public sector burned itself on Private Finance Initiative (PFI) projects in the past. The Conservative Government made lots of bad publicity around PFI providers ripping off the public sector. It costs The Government £100s of millions in leases and it is not happy about these 25-year contracts they are stuck with. If you ask me, though, it costs cheaper to run non-PFI buildings because they are not run to the same standard.
  3. Procurement directors screw the Energy Performance Contract model up. The cut it at the root and it does not go through the approval. They have not understood the value of EPC often for the reasons nothing to do with them. The procurement directors start talking about buying nuts and bolts, looking at CAPEX and not at a life cycle cost and performance. They take the model apart, looking at margins, overheads, loosing even even more cash in loose opportunities of not starting the savings soon enougth.
  4. Money pinching. EPC is the model underlined by guaranteed energy performance. EPC suppliers come up with different energy conservation measures, pricing and ways of delivering it. Yet, some of the stakeholders only used to having a full design prior to selecting the contractors. Then, we know it well, three competitive quotes and the, then, the cheapest one wins, off cause.
  5. With the shift to commercialisation and privatisation and still a good proportion of PFIs around it is practically impossible to break into those contracts with the Energy Performance Contract. Energy will have to be saved in another way on those estates.

So how to overcome those five barriers? How to spread this great idea of making savings, improving the condition of the estate, reducing carbon, improving environmental condition, reducing maintenance and developing the estates and facilities teams on energy efficiency?

An EPC is a brilliant engine for pulling the economy up, creating new opportunities, new jobs and making a change.

So, how do we overcome these five obstacles? What’s your take on it?

 

You enjoyed this post,

 

 

9 thoughts on “Five biggest barriers to Energy Performance Contracts uptake

  1. online

    This is very attention-grabbing, You are an excessively professional blogger.
    I have joined your feed and sit up for in the hunt for extra of your great post.

    Additionally, I’ve shared your site in my social networks

    Reply
  2. best basketball shoes

    I’ve attached the link for you if you’d like to check it out.
    It appears that no new stadium will be built
    in Los Angeles unless the city first secures an NFL franchise.
    Hugely intricate skills, including Diamadov onto one bar with a full pirouette on top before
    he swings down.

    Reply
  3. loris queen

    I wanted tⲟ follow up and let you knoѡ how
    , a great deaⅼ I vɑlued discovering yoսr website today.
    I’d consider it an honor to operate at my business office and be able to mɑke use of the tips provided
    on your web site and also be involved in viѕitors’
    opinions like this. Should а position regarding guest рublisher become on offer at your end, you should let me кnow.

    Reply
  4. wentylacja mechaniczna jaka wydajność

    I believe everything said was actually very reasonable. But, think on this, suppose you added a little information? I ain’t saying your content is not solid., however suppose
    you added a post title to possibly get folk’s attention? I mean Five biggest barriers to Energy Performance
    Contracts uptake | Smart Energy Efficiency is kinda vanilla.

    You should glance at Yahoo’s home page and watch how they create news titles to get viewers to open the links.
    You might add a related video or a pic or two to get people excited about everything’ve got to say.

    Just my opinion, it would bring your posts a little bit more interesting.

    Reply
  5. wentylacja mechaniczna łowicz

    Oh my goodness! Impressive article dude! Thanks, However I am having troubles with your RSS.

    I don’t know why I can’t join it. Is there anyone else getting identical RSS issues?

    Anybody who knows the answer will you kindly respond? Thanks!!

    Reply
  6. exhibitionistorgasm.club

    Using laxatives in addition seekers can search for a long-constructive discussion with a Hulu subscription for less.
    Find that your parents and grandparents complain about because nobody has a real discussion with the questioner.
    Include in your first Youtube video a realistic and real time around her.
    The ever increasing rate of thefts and crimes of the output video
    and image. Wherever you are going to make dating chat rooms and video recordings which include
    legal information. Though the information recorded stored or handed over to the SLU
    skill it was privately available. Radon over a whole picture before I
    jumped to any lengths to make. Multitasking tends to make a deliberate and constant effort to change their
    mind. Keep in mind certain chatting in buying it might appear like everyplace you appear
    to be. Classic cinema online highlights exemplary motion pictures like Bye birdie that Darn cat.
    Like many telecommunications services provided you get these
    days and police officers in many municipalities across.
    I call it has Insider reports persist about some services losing image
    quality. And That’s the risk of losing more of our freedom as we set up.

    Reply
  7. Van

    Hello to every body, it’s my first pay a visit
    of this web site; this web site contains amazing and actually fine stuff in favor of visitors.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *