These tools support communities in entering into arrangements with private service providers.
Involvement of private service companies (third parties) can function as essential means of removing barriers and improve communication and co-operation between the public and the private sector.
Arrangements with third parties are characterized by the sharing of investment, risk, responsibility and reward between the service provider and the client
Third party financiers are often referred to as “Energy Service Companies” or ESCOs, which are businesses designed to prepare, design, build, install, operate and maintain energy efficiency projects. There are various ways of involving ESCOs, but typically services are provided through an Energy Performance Contract.
The building owners and the ESCO agree to use future energy savings to pay for the entire cost of energy efficiency projects.
The ESCO will also guarantee that the energy savings – which may be achieved, will pay for all project costs.
Energy service companies have mainly been established by private companies
but the possibility of establishing locally rooted energy service companies
involving e.g. local authorities, end-users and local market actors as stakeholders, is also an option
SEC-Tools Presentation on EPC Methodology
SEC Tools Best Practise Example
4.5.1 Guidelines on Third Party Financing/Energy Services