Energy Performance Contracting

Energy Performance Contracting

“Energy performance contracting” is defined within the Directive 2012/27/EC on energy efficiency. Article 2(27) states that “energy performance contracting” means contractual agreement between a user and a provider of the measure (that is the concessionaire and the concession grantor) with an aim to enhance energy efficiency, which is being monitored throughout the duration of the contract and in the framework of which investments (labour, supply or service) in the measure are being paid back relatively to the rate of energy efficiency improvement agreed by the contract or some other agreed measure of energy efficiency such as financial savings.

In this context, paragraph 47 of the Preamble to the Directive 2012/27/EU on energy efficiency states that as in other forms of third-party financing arrangements, in an energy performance contract the beneficiary of the energy service avoids investment costs by using part of the financial value of energy savings to repay the investment fully or partially carried out by a third party.

With the adoption of the Energy Act, the concept of energy performance contracting was transposed into the Slovenian national acquis in Article 29(4), where the Act cites the definition of energy performance contracting found in the Directive on energy efficiency. However, the Energy Act fails to elaborate on this institute further.

The Institute for Public-Private Partnership offers a comprehensive support in the implementation of energy performance contracting.

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