Also known as Performance contracting or a Guaranteed Energy Savings Contract, is a valuable tool for achieving infrastructure modernisation, budget reduction, efficiency, and sustainability goals without the need for upfront capital expenditure. Performance contracts are budget-neutral. Project costs are paid for by the guaranteed savings realised from efficiency upgrades.
Many states and the federal government have enabled legislation that allows them to enter into such contracts with an Energy Service Company (ESCO), such as Maiden Ventures. Here’s how it works. The ESCO:
- Identifies cost savings, infrastructure modernisation, sustainability, and revenue enhancement opportunities.
- Implements a bundle of efficiency and technology improvements to be funded by project savings.
- Guarantees the savings – if they don’t materialise, we pay the difference.