Search Results (24)

Energy Performance Contracts (EPC) are performance-based financing mechanisms designed to improve energy efficiency and support renewable energy adoption in the public sector. This study examines the economic efficiency of a 1710.72 kWp solar power plant (SPP), implemented under an EPC at Alanya Alaaddin Keykubat University, using a regression-based analysis. The model evaluates the effects of solar radiation, investment cost, and electricity sales price on unit production cost, and its predictions were compared with actual production data. Results show the system exceeded the EPC contract target by 16.2%, producing 2,423,472.28 kWh in its first year and preventing 1168.64 tons of CO₂ emissions. The developed multiple linear regression model achieved a predictive error margin of 14.7%, confirming its validity. This study highlights the technical, economic, and environmental benefits of EPC applications in Türkiye’s public institutions and offers a practical decision-support framework for policymakers. The novelty lies in integrating a regression model with operational data and providing a comparative assessment of planned, predicted, and actual outcomes. Full article

Addressing the urgent need for sustainable energy transitions in rural development while achieving the dual carbon goals, this study focuses on resolving critical challenges in agricultural photovoltaic (PV) applications, including land-use conflicts, compound energy demands (electricity, heating, cooling), and financial constraints among farmers. To tackle these issues, a dual-mode cost–benefit analysis framework was developed, integrating two distinct investment models: self-invested construction (SIC), where farmers independently finance and manage the system, and energy performance contracting (EPC), where third-party investors fund infrastructure through shared energy-saving or revenue agreements. Then, an integrated photovoltaic-storage agricultural greenhouse (PSAG) microgrid optimization model is established, synergizing renewable energy generation, battery storage, and demand-side management while incorporating operational mode selection. The proposed model is validated through a real-world case study of a village agricultural greenhouse in Gannan, China, characterized by typical rural energy profiles and climatic conditions. Simulation results demonstrate that the optimal system configuration requires 27.91 kWh energy storage capacity and 18.67 kW peak output, with annualized post-depreciation costs of 81,083.69 yuan (SIC) and 74,216.22 yuan (EPC). The key findings reveal that energy storage integration reduces operational costs by 8.5% compared to non-storage scenarios, with the EPC model achieving 9.3% greater cost-effectiveness than SIC through shared-investment mechanisms. The findings suggest that incorporating an energy storage system reduces costs for farmers, with the EPC model offering greater cost savings. Full article

The urgency to retrofit buildings for energy efficiency highlights the need for effective financing mechanisms. Energy Performance Contracts (EPCs) present a viable solution by financing building retrofits based on anticipated energy savings. Reliable baseline models are essential to quantifying these savings accurately. EPCs facilitate retrofits by allowing Energy Service Companies (ESCOs) to cover the upfront costs of energy-saving measures, with repayment derived from the cost savings generated by the reduced energy consumption. This performance-based approach demands accurate and reliable baseline models to predict the expected savings. This study introduces a white-box calibration methodology that accurately estimates energy consumption even with limited monitoring data, making it valuable for cases with scarce or incomplete historical data. In addition to addressing data limitations, the research examines scenarios with restricted control parameters, demonstrating that indoor temperature and energy demand are essential to obtaining a robust baseline model. The present work focuses on performing the calibration process through a single-stage approach that operates on EnergyPlus’ Ideal Loads component and the building-envelope parameters simultaneously. The paper demonstrates that it is possible to accurately assess the building’s energy performance and capture its indoor climate while reducing the time and resources required to train the model. This method achieved a Coefficient of Variation of Mean Square Error (CV(RMSE)) of 26.40% and a Normalized Mean Bias Error (NMBE) of −8.49% during training, with stability maintained during the checking period. The resulting calibrated white-box model serves as a powerful tool for EPCs, enabling reliable prediction of energy savings and offering a predictive framework for building management. By incorporating both energy and temperature, the model supports more informed decision-making and proactive energy management, enhancing the overall sustainability and efficiency of building operations. The methodology is limited to air-based HVAC systems and depends on high-resolution data and monitoring infrastructure. Additionally, the methodology was tested on a single demonstration site, and further research is needed to assess its adaptability to diverse building types and HVAC configurations. Full article

The energy-saving retrofit (ESR) of existing buildings under the energy performance contracting (EPC) mode depends on the effective risk early warnings of energy service companies (ESCOs); therefore, this paper constructs an ESCO risk early warning model for energy-saving retrofit projects of existing buildings based on cloud matter element theory (CMET). The ESCO risk early warning indicator system is established according to the essential characteristics of ESR projects of existing buildings. The subjective weighting method (G1 method) and the objective weighting method (entropy weight method) are introduced to determine the comprehensive weights of ESCO risk early warning indicators. The ESCO risk warning level of ESR projects of existing buildings is evaluated based on the cloud matter element model concerning the randomness and ambiguity of the ESCO risk early warning indicators. Finally, the risk early warning model is applied to the ESCO risk management practice of an existing building ESR project in Tianjin. By comparing the actual project and the risk early warning model constructed in this paper, it is concluded that the model has high levels of feasibility, reasonableness, and efficiency. This model has scientific guidance value for ESCO enterprise risk control. Full article

Buildings account for a significant share of global energy consumption and carbon emissions, making deep renovations essential for climate mitigation. Renovation passports (RPs) are an emerging concept still in the early stages of development, designed to provide structured step-by-step renovation roadmaps that prevent lock-in effects and optimise energy performance over time. However, their large-scale adoption in the European Union (EU) remains limited due to technical, financial, behavioural, and policy challenges. This study conducts a Systematic Literature Review (SLR) to identify key strategies for the successful development and large-scale implementation of RPs in EU. A total of 217 research articles from Scopus and ScienceDirect, along with 99 EU policy documents and 16 Building Performance Institute Europe (BPIE) reports, were analysed to assess the technical, financial, behavioural, and policy dimensions of RP adoption. Our findings highlight the role of digital tools like Building Information Modelling (BIM), digital building logbooks (DBLs), and one-stop shops (OSSs) in improving RP usability and accessibility. Financial barriers, such as high upfront costs and fragmented funding, require harmonised incentives, green loans, and energy performance contracting. Behavioural factors, including homeowner awareness, trust in renovation services, and decision-making complexity, also influence RP adoption. This study underscores the need for stronger policy integration between RPs and energy performance certificates (EPCs), improved financial instruments, and enhanced stakeholder engagement. By addressing these gaps, this research provides actionable recommendations for policymakers and stakeholders to accelerate the adoption of RPs and contribute to the EU’s Renovation Wave strategy and broader climate neutrality objectives. Full article

The residential building sector is critical to the success of Europe’s 2030 and 2050 decarbonization targets. To achieve that success, this paper demonstrates how advanced Pay-for-Performance (P4P) energy services for energy service companies (ESCOs) can address challenges by leveraging low-cost data collection systems in buildings to offer a combination of revenues stemming from informed decision-making, energy management optimization, and active participation in demand response schemes. Our methodology includes (i) preliminary assessments to identify each building’s occupancy patterns, equipment, and smart readiness, (ii) the installation of sensors and data gateways, (iii) the deployment of data-driven energy efficiency and demand response measures, and (iv) the evaluation of non-energy services such as comfort and air quality monitoring. We conducted empirical tests in three distinct building typologies: a multi-apartment residential building in Spain, detached dwellings in Croatia, and a hotel bungalow in Greece, to measure self-consumption savings, occupant-driven energy use behaviour changes, and the potential for explicit demand response. The results indicate overall payback periods of less than 10 years, although effectiveness varies depending on occupant engagement, building suitability, and the local energy market context. These findings reinforce the technical and economic feasibility of enhanced ESCO smart services and provide practical insights for scaling up data-driven solutions to advance Europe’s energy and climate objectives. Full article

Energy performance-based contracts (EPCs) offer a promising solution for enhancing the energy performance of buildings, which is an overarching step towards achieving Net Zero Carbon Buildings, addressing climate change and improving occupants’ comfort. Despite their potential, their execution is constrained by difficulties that hinder their diffusion in the architecture, engineering, construction, and operation industry. Notably, the Measurement and Verification process is considered a significant impediment due to data sharing, storage, and security challenges. Nevertheless, there have been minimal efforts to analyze research conducted in this field systematically. A systematic analysis of 113 identified journal articles was conducted to fill this gap. A paucity of research tackling the utilization of digital technologies to enhance the implementation of EPCs was found. Consequently, this article proposes a framework integrating Digital Twin and Blockchain technologies to provide an enhanced EPC execution environment. Digital Twin technology leverages the system by monitoring and evaluating energy performance in real-time, predicting future performance, and facilitating informed decisions. Blockchain technology ensures the integrity, transparency, and accountability of information. Moreover, a private Blockchain infrastructure was originally introduced in the framework to eliminate high transaction costs related to on-chain storage and potential concerns regarding the confidentiality of information in open distributed ledgers. Full article

This paper introduces an innovative cooperative model for energy efficiency retrofitting that incorporates carbon emission rights, addressing critical financial constraints in Energy Performance Contracting (EPC). By employing the fuzzy analytic hierarchy process (F-AHP) to evaluate risk assessment indicators and stakeholder contributions and utilizing the enhanced Shapley method for equitable benefit distribution, the model demonstrates significant improvements in financing and efficiency for energy conservation projects. The findings are as follows: (1) the energy efficiency retrofit model, which integrates carbon emission rights, effectively alleviates the financial constraints and fosters energy conservation and emission reduction in guaranteed-savings EPC projects; (2) the enhanced Shapley method is deemed appropriate for the equitable distribution of energy-saving benefits among stakeholders; (3) when compared with the traditional model and the benefit allocation-absent carbon rights, the energy-saving benefits of the energy efficiency retrofit model incorporating carbon emission rights are higher in individual and overall terms. The findings of this study offer a viable solution to financing challenges faced by stakeholders in such projects and delineate a pragmatic approach for enterprises to enhance energy efficiency and reduce emissions. Full article

To solve the problems of a single mode of energy supply and high energy cost in the park, the investment strategy of power and heat hybrid energy storage in the park based on contract energy management is proposed. Firstly, the concept of energy performance contracting (EPC) and the advantages and disadvantages of its main modes are analyzed, and the basic scheme of EPC for parks is proposed combined with the actual demand. Furthermore, the multiple energy storage model for power and heat storage in parks is established, which includes lithium batteries and heat storage tanks. Based on this, minimizing the annual operation cost of parks is taken as the optimization goal, and the capacity optimization model for power and heat storage is constructed, which considers the investment costs, operation and maintenance costs, purchased energy costs, peak-shaving subsidy, and environmental subsidy. Finally, an industrial park is selected as an example of EPC to verify the effectiveness of our proposed investment strategy. The results show that compared with the situation before the energy-saving renovation, the park can save 35.14 ten thousand CNY in annual cost expenses. When the unit power price of the lithium battery exceeds 3900 CNY/kW, the unit capacity price exceeds 5460 CNY/kWh, the unit power price of the heat storage tank (HST) exceeds 6000 CNY/kW, and the unit capacity price exceeds 1000 CNY/kWh, the configuration of the lithium battery and HST in the park is no longer the optimal choice to perform the energy-saving renovation. Full article

Building energy efficiency in public institutions is crucial for achieving energy conservation and emissions reduction goals. The application of energy performance contracting (EPC) can effectively reduce energy consumption in these buildings and promote the development of the energy-saving service industry. However, there is a lack of initiative among public institutions to adopt EPC. This study aims to investigate the factors that drive the intention and behavior of public institutions to apply EPC and enhance their proactive engagement in building energy efficiency retrofitting. By considering the current status of EPC application in public institutions and drawing on relevant decision-making and behavioral theories, this paper identifies the key factors that drive the intention and behavior of public institutions, and constructs a theoretical model of the intentional and behavioral driving factors. In the empirical testing phase, research data are collected through online questionnaires. Structural equation modeling is employed to validate and analyze the extent of the driving factors and their interrelationships. The key findings are that (1) perceived usefulness, trust, and perceived risk significantly drive the behavior intention of public institutions to apply EPC; (2) perceived behavioral control and perceived ease of use significantly positively drive the behavior of public institutions, with behavior intention being the most influential factor; and (3) policy system and organizational support play a significant moderating role in the process from intention to behavior. Based on these findings, this paper proposes the critical tasks and suggests countermeasures for stakeholders in EPC projects. Full article

The intensification of the EU’s institutional action to ensure an appropriate level of energy efficiency demonstrates the key role of pro-saving measures and energy efficiency measures to achieve a climate-neutral economy by 2050. Achieving this goal is therefore also possible through energy performance contracting (EPC), which enables specialised entities called energy service companies (ESCOs) to operate in the market. The creation of an appropriate and favourable framework at the EU level for the use of EPCs does not imply an identical approach by all individual member states. For this reason, the domestic policy of one member state, Poland, was contrasted with the EU framework. Under the influence of the EU guidelines and regulations, the EPC legislations in Poland was amended. This provided a reason to analyse the importance of legal factors (conditions) in implementing the EPC model, especially from the perspective of public institutions. In light of the above, it was attempted to show whether legal regulations would be sufficient to increase the number and level of ESCO projects in public sector units and whether they would remove the barriers to EPC development that are seen in public–private partnerships and the impact of obligations under an energy efficiency improvement agreement on the level of government debt or public finance sector deficit. This paper adopts research methods that are typical to studying EPC topics; however, the research conducted here is theoretical (descriptive analysis) and of dogmatic legal in nature. Full article

The market of energy services for the residential sector in Europe is very limited at present. Various reasons can be argued such as the high transaction costs in a highly fragmented market and the low energy consumption per dwelling. The rather long payback time for investments render Energy Services Companies’ (ESCOs) services financially unattractive for many ESCOs and building residents, thus hindering a large potential of energy savings in a sector that is responsible of almost half of Europe’s energy consumption. If the ambitious 2030 and 2050’s decarbonisation targets are to be met, the EU’s residential sector must be part of the solution. This paper offers insights about novel ESCO business models based on intensive data-driven Artificial Intelligence algorithms and analytics that enable the deployment of smart energy services in the domestic sector under a Pay-for-Performance (P4P) approach. The combination of different sources of energy efficiency services and the optimal participation of domestic consumers in aggregated demand response (DR) schemes open the door to new revenue streams for energy service providers and building residents and reduce the hitherto long payback periods of ESCOs services in the sector. Innovative business models for ESCOs and demand flexibility Aggregators are thoroughly described. Especially customised Performance Measurement and Verification protocols enable fair and transparent P4P ESCO contracts. The new human-centric energy and non-energy services increase the energy consumption awareness of building users and deploy behavioural and automated responses to both environmental and market signals to maximise the economic benefit for both energy service providers and consumers, always respecting data protection rules and the consumers’ comfort preferences. The new hybrid business models of P4P energy services make traditional EPC more attractive to energy service providers, with low cost data collection and treatment systems to bring payback periods below 10 years in the residential building sector. Full article

Energy context has been the subject of a great deal of research from different perspectives, including, but not limited to: energy transition, renewable energy, nuclear power, energy saving, energy use, energy level, energy trade, energy security, traction energy, energy communities, energy poverty, Energy Performance Contracting (EPC), climate change, climate policy, and climate sustainability [...] Full article

Energy performance contracting (EPC) is the best solution for an educational building to implement energy conservation measures (ECMs) because of its high capital expenditure and operational expenditure needed for retrofit and maintenance. It is also considered a win–win mechanism for organising building energy efficiency retrofit projects. It aims to assist educational buildings in acquiring new high-efficiency equipment and maximising energy use reduction, as guaranteed by energy service company (ESCO). This study developed an EPC model using regression analysis, in which the inputs are based on the data collected during the preliminary energy audit in University A. As a result, with a quantum sharing ratio of 0.95/0.5 for ESCO/University A, the forecasted energy savings from the proposed ECMs, chiller optimisation and replacement, lighting retrofit, and energy management system are estimated to save 25.6% energy use, which reduces 5,672,057 kilowatt-hour (kWh) in electricity consumption; saves RM 2,762,291.76/year; carbon dioxide (CO₂) mitigation equal to 3,771,061.22 kgCO₂/year; return of investment of 4.2 years with a 5% interest rate; and building energy intensity of 93.55 kWh/m²/year. A sensitivity analysis of various quantum sharing ratios found that the saving value of ESCO is inversely proportional to that of University A as the client when the quantum sharing ratio for the former is increasing. Full article

Malaysia’s energy intensity (GWh/GDP) shows an increasing trend since the 1990s, leading to the government’s efforts to promote energy efficiency via policies such as the National Energy Efficiency Action Plan (NEEAP), which includes the Energy Performance Contracting (EPC) initiative. This paper reviews recent publications in industrial Combined Heat and Power (CHP) with a focus on international case studies relevant to Malaysian industries that use industrial steam and highlights trends within the research area. It also provides the basis for more case studies to be performed in the Malaysian industry to improve energy efficiency while also supporting further academic research in the area. Additionally, the paper documents the importance of data collection and analysis as well as demand forecasting, not only for a better understanding of industrial energy systems but also to increase profitability since system loads may vary throughout a typical year. A multi-criteria and comprehensive approach is recommended in future case studies to ensure energy efficiency, economic returns and environmental impact are considered to ensure long-term sustainability. A summary of barriers to CHP implementation in the industry is also included to provide a broad understanding of industrial CHP. Full article