Energy Performance Contract
A Guaranteed Savings Model for Your Business
As AES Innovation, We provide technical and consulting support at every stage of the energy efficiency contract process.
Energy Performance Contract: A Guaranteed Savings Model for Your Business
As energy costs increase every year, businesses need to reduce this burden. energy performance contract Discovering the Energy Saving System (EPS) model is no longer a choice, but a strategic necessity. Thanks to this model, you can implement energy efficiency projects with guaranteed savings targets without bearing the initial investment cost.
Energy performance contract, This is a contract model signed between an energy utility company (ESCO) and the facility owner, guaranteeing a specific energy saving target. The ESCO designs, implements, and finances the project. If the savings are not achieved, the difference is covered by the ESCO.
The process proceeds in three stages. In the first stage, an energy audit is conducted to analyze current consumption. In the second stage, savings targets are determined and a technical and financial model is established. In the third stage, the implementation is carried out and monitored through a performance measurement and verification (M&V) process.
What is an Energy Performance Contract and how does it work?
Energy Efficiency Law and EPS Mandate
In Türkiye Energy Efficiency Law No. 5627, The law includes industrial facilities and energy-intensive public buildings with annual total energy consumption of 1,000 TEP and above within the scope of energy management obligations. Within this framework, the EPS model stands out as the most practical solution that simultaneously meets both legal compliance and financial sustainability.
In addition to regulatory enforcement, the implementation of EPE (Energy Performance Assessment) results is increasingly being monitored. Therefore, EPS provides strong evidence not only to minimize legal risk but also in terms of corporate sustainability reporting.
WHY AES INNOVATION?
Performance Guarantee in Energy Efficiency Projects
The biggest weakness of traditional energy efficiency projects is that savings cannot be guaranteed. Performance-guaranteed energy. In this model, this risk is completely eliminated. ESCO documents the savings it commits to by conducting its measurement, verification, and reporting processes in accordance with ISO 50001 and IPMVP protocols.
The contract period is typically structured between 5 and 15 years. During this period, a portion of the savings generated is allocated to repayment of the investment, while the remainder contributes directly to the operating budget. At the end of the project, all equipment and savings are transferred to the facility owner.
How to Invest in Energy Using the ESCO Model?
The most attractive aspect of the ESCO model for businesses is..., zero capital investment This is because the project financing is provided by ESCO, meaning the facility owner does not bear any balance sheet burden. This structure offers a significant advantage, especially for SMEs and public institutions with limited investment budgets.
The main areas covered by the application include: conversion of lighting systems to LED, HVAC optimization, compensation and harmonic filtering, motor-pump efficiency, building automation systems, and renewable energy integration. AES Innovation determines the solution package with the highest savings potential for each facility through a customized engineering analysis.
Factors that Make a Difference in the EPS Process with AES Innovation
AES Innovation, As an independent electrical inspection organization, we bring technical impartiality and reliability to energy performance contract processes. Our engineering team works with you through energy audits, M&V planning, and contract consulting phases to ensure both legal compliance and return on investment.