Public-private partnerships for energy efficiency projects: A win-win model to choose the energy performance contracting structure

2018 ◽  
Vol 170 ◽  
pp. 1064-1075 ◽  
Author(s):  
Nunzia Carbonara ◽  
Roberta Pellegrino
Keyword(s):  
Energy Efficiency ◽  
Energy Performance ◽  
Public Private Partnerships ◽  
Performance Contracting ◽  
Energy Performance Contracting

Building Energy-Efficiency Running Mode of Large-Scale Public Building: Based on Energy Performance Contracting

2011 ◽  
Vol 368-373 ◽  
pp. 3663-3666
Author(s):  
Qi Song ◽  
Xiao Jie Zhang
Keyword(s):  
Energy Efficiency ◽  
Energy Saving ◽  
Large Scale ◽  
Building Energy ◽  
Energy Performance ◽  
Building Energy Efficiency ◽  
Public Building ◽  
Performance Contracting ◽  
Energy Performance Contracting ◽  
Running Mode

Energy performance contracting plays a key role in improving the building energy-efficiency in China. This paper introduces the current situation of energy-efficiency of large-scale public building in China and provides an overview of energy performance contracting, and then puts forward an innovative energy-efficiency running mode. This paper tries to offer theoretical references for the development of EMC in energy-saving field of large-scale public buildings.

scholarly journals Energy Performance Contracting and Public-Private Partnership: How to Share Risks and Balance Benefits

Energies ◽  
2020 ◽  
Vol 13 (14) ◽  
pp. 3625
Author(s):  
Laura Martiniello ◽  
Donato Morea ◽  
Francesco Paolone ◽  
Riccardo Tiscini
Keyword(s):  
Energy Efficiency ◽  
Net Present Value ◽  
Energy Performance ◽  
Profit Sharing ◽  
Transfer Energy ◽  
Public And Private ◽  
Performance Contracting ◽  
Contractual Agreement ◽  
Energy Performance Contracting

Public private partnerships (PPPs) are a well-known instrument used worldwide by public administration (PA) to build public infrastructure using private knowhow and financial resources, and sharing risks. In recent years, PPPs have been widely adopted to develop energy efficiency projects between public and private sectors. In this context, a successful project requires a contractual arrangement based on energy performance contracting (EPC) that balances the interests of the two parties. This paper aims to answer two questions: how to share the benefits between the contractual parties and reach an optimal long-term contractual agreement; and which type of contract ensures a consistent risk transfer to the private partner, allowing the PA an “off balance” accounting treatment. The research questions are answered through the development of a mathematical equation able to calculate the optimal percentage of benefits sharing between partners in a long-term contractual agreement. The results are tested with a simulation based on a case study about the energy efficiency project of an Italian hospital. The paper is innovative because it provides suggestions to improve the EPC-PPP contractual structure and realize a balanced agreement between the public and private partners. Moreover, it analyzes the different allocation of risks in EPC contracts to identify the implication for the PA in terms of on-off balance accounting treatment in energy efficiency investment. We show how a successful long-term EPC-PPP can benefit from a mixed contractual structure in which profit-sharing percentage changes during the contract’s life to ensure the same net present value (NPV) to both public and private partners. This paper supports public decision making in order to choose contracts that are able to transfer energy and management risks. Moreover, it helps to understand the balance between public and private interests in a long-term EPC-PPP contract.

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