Frequently Asked Questions
General Questions
1. What is Better Energy Financing?
Better Energy Financing is a programme that has been set up by the DCENR and SEAI to
develop funding mechanisms and associated contract and procurement structures for
energy efficiency and renewable energy projects in the domestic and non-domestic markets
in Ireland, with distinct workstreams for both sectors. This is a key component of the
strategy to meet the Programme for Government commitment to transition from a grantbased system of incentivising energy efficiency activity to one based on sustainable
financing.
2. Will there be Better Energy Workplaces this year?
The Better Energy Workplaces grant will not be available this year, however certain energy
efficiency projects in the commercial, industrial and public sectors can borrow from the
Energy Efficiency Fund. In addition, SEAI will provide technical assistance to a limited
number of exemplar projects in private and public sector organisations seeking to undertake
EPC projects.
Energy Performance Contracting (EPC) Framework
3. What is an Energy Performance Contract (EPC)?
Energy Performance Contracts (EPCs) are focused on energy reduction or energy efficiency
improvement measures. They generally include a performance guarantee of the energy
savings to be achieved for the duration of the contract. EPC is a method for developing and
implementing comprehensive energy efficiency projects. An EPC is typically provided by an
Energy Service Company (ESCO) which upgrades equipment and systems, monitors energy
savings and maintains upgrades over the lifetime of the project. For more information on
EPC see
http://www.seai.ie/Your_Business/Public_Sector/Energy_Performance_Contacts_and_Guar
antees.pdf
4. What is the process involved in implementing an EPC?
There are a series of key decisions to be made before deciding an EPC solution is the right
one. Once decided, good practice would be to undertake a series of tasks to assess the
business case, gather baseline data and then progress to procurement. At this stage the
bidders would typically undertake an Investment Grade Audit and tender guaranteed
savings. SEAI is setting out an EPC development process to help and support organisations
implement EPC project. For public bodies a detailed process meeting public procurement
rules will be provided. It will detail links to possible funding routes, including the NEEF.
5. Is an EPC the only way to implement an Energy Efficiency Project?
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No, there are a number of ways in which energy efficiency projects can be implemented
depending on the size and complexity of the work involved, in house expertise and
structure/availability of finance. Companies and public sector bodies can also pay for works
with no associated performance guarantees. An SEAI process will detail alternative methods
as well as EPC.
6. What is the Energy Performance Contracting Framework?
DCENR and SEAI are developing an Energy Performance Contracting Policy Framework to
help guide and support both private and public sector organisations to implement energy
efficiency measures. The Framework will provide, for public sector and private sector
organisations, a standard approach to procurement and legal contracts, supported with a
suite of tools including comprehensive guidance documents, templates, model contracts,
monitoring and verification requirements to support the procurement and delivery of
energy efficiency projects. A number of exemplar projects in various sectors will be guided
through the process in 2013.
7. What is the role of SEAI in the Energy Performance Contracting Framework?
SEAI has a core role in not only producing the Framework, but supporting projects through
it. The main focus will be on supporting the client organisations through SEAIs existing public
and private programmes. However SEAI will also be supporting the market develop by
running consultation sessions, networking events and training. SEAI it is envisaged will have
a role in the NEEF, yet to be detailed.
8. How do I establish whether an EPC structure is appropriate for my Energy Efficiency needs?
EPC projects are complex and take several months to develop and procure. Initially, contact
should be made with SEAI through the contact details below. You may also wish to engage
energy professionals or participating energy suppliers to help you progress a potential
project.
9. How exactly will SEAI but supporting clients implement EPC projects?
SEAI will be supporting clients who are signed up to their Agreement, LIEN or public sector
programmes in the first early stages of EPC development. Public bodies under the
Partnership programme may qualify for an EPC assessment. Further details on supports for
public bodies will be posted on Energy Link, the online network for public sector energy
managers at the end of March 2013.
10. How do we apply to do an EPC project?
The call for ‘Expressions of Interest’ in the EPC Framework opened in February 2013. SEAI
wish to gauge interest in potential EPC projects. If you have a project that you think would
be suitable please fill out the questionnaire and return it to SEAI at the contact details
below. Full details of the EPC Framework and associated guides and documents will be
launched at the end of March 2013.
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11. What is an exemplar project?
An exemplar project is an EPC project in a specific sector which has a high potential to
proceed through to the award stage of procurement and will be a demonstration project
within its sector both in Ireland and throughout the EU. Exemplar projects will be recruited
from both the public and private sectors. Initially, an exemplar project will be sought from
each of the following sectors: Central Government Buildings, Defence and Justice, Education,
Food and Agriculture, Health, Manufacturing, Public Lighting and Water Services.
Approximately 20 exemplar projects will be supported through the Framework in 2013 and
2014.
12. When will the forms for Applications be online?
There will not be application forms for the EPC Policy Framework. If you have a project that
you think would be suitable please fill out the attached questionnaire and return it to SEAI at
the contact details below. Full details of the EPC Framework and associated guides and
documents will be launched at the end of March 2013. The guide will be available the end of
March also.
13. Is the Technical Assistance support the only support available?
SEAI, through its existing programmes, assist the early planning stages of a project (see
contact details below for public and private sector programmes). Technical Assistance will
be available to the selected exemplar projects, expected to be twenty in number.
Regardless of whether a public or private organisation qualify for Technical Assistance
supports as exemplars, projects can still progress regardless the support SEAI may provide.
14. What training will be provided for organisations interested in doing an EPC project?
SEAI will provide various training, networking and competency building supports to all
sections of the market place. This programme will kick off in April and such events will be
announced closer the time the Framework is launched.
15. Will the framework also apply to the development of renewable projects?
Yes the project development process under the framework will apply to the development of
what is termed Local Energy Supply Contracts (LESC). It will contain guidance and standard
legal documentation to similar to the EPC materials. The EPC framework will be released the
end of March 2013. The LESC additions to the framework will be released in May 2013.
16. Will the Framework apply Local Area Supply Contracts (LESCs)
The LESC framework will be for projects within the clients boundary. For example, it will
include district heating within a clients’ campus or site boundary. But it will not include
commercial district heating schemes that sell energy to other entities outside the clients’
boundary. Similar for wind and PV, the framework will not serve projects involving supplying
energy onto the grid to be used elsewhere by the client. The energy must be used mostly on
site.
17. Is it envisaged that district heating and bigger projects will form part of the framework and
fund?
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The priority for 2013 is to get the EPC framework working, get the LESC framework working,
to get Exemplar projects up and running and supported through the National Energy
Efficiency Fund or other funds. The DCENR may decide to increase the scope of the
Framework once these core objectives are progressing.
18. Are renewable energy projects applicable for support as Exemplar projects?
Yes, but the priority will be to support EPC projects. The application guide will detail the
criteria for selecting the projects that will be supported as Exemplars. We envisage that
supported LESC type projects will either form part of an Integrated EPC/LESC project or meet
some other objectives to be set out in the application guide.
19. Why is EPC the priority?
‘Energy efficiency first’ is a principle to be followed in all projects. For a particular facility, the
aim should be to first reduce the energy consumed to a minimum (possibly through an EPC or
traditional models), and the residual demand then be served by a cheaper, or at least price
equivalent, and sustainable, form of energy. For example, for a nursing home that runs 24/7,
the objective should be to first reduce the energy consumed perhaps through insulation,
better controls, new windows etc. The second objective is to then supply this now greatly
reduced energy load through a cheaper & more sustainable form of energy supply: from oil
to gas/biomass boiler or a heat pump.
Energy Services Company (ESCO)
1. How does the ESCO model work?
An ESCO is a service provider that takes on financial risk if the project does produce the
projected energy savings. There are many different types and services that could be labelled
as ESCOs. The traditional perception of an ESCO is a service provider who obtains funding to
upgrade equipment and systems which will deliver guaranteed energy savings, as set out in
an Energy Performance Contract. More information on the different ESCO definitions and
models is discussed in
http://www.seai.ie/Your_Business/Public_Sector/Energy_Performance_Contacts_and_Guar
antees.pdf. The exact model depends on a lot of factors, described in the aforementioned
guide.
2. Where can I get names and contacts of ESCOs currently operating in the Irish Market?
There are number of companies which offer ESCO type services. There is no list of registered
ESCOs. SEAI / New Era is considering the need for such a register and is open to suggestions
to the market place as to possible solutions. SEAI recognises the need for potential clients to
understand what companies can offer services under the Framework and/or the Fund.
3. Can you provide information about the types of projects that suit the EPC Model?
The types of projects that suit the EPC model are typically the medium to large energy users
in the industrial, commercial and public sectors where investment is required to upgrade
and maintain energy consuming equipment and systems.
4. Are there any case studies of Irish EPC Projects?
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Examples of such projects are summarised in
http://www.seai.ie/Your_Business/Public_Sector/Energy_Performance_Contacts_and_Guar
antees.pdf. SEAI is currently developing more case studies as part of the Framework.
5. Where can I get a template EPC contract?
A standard contract has been developed as part of the EPC Framework and will be made
available at the end of March 2013.
6. What are the legal implications and considerations of Energy Performance Contracting
Agreements?
The legal implications of the EPC are set out in the contract. A standard contract has been
developed, which will form the basis for negotiation between companies/public bodies and
ESCOs as part of a procurement process.
7. What are the key issues to be aware of when considering an EPC Contract?
There are key issues to be aware of throughout the EPC process which need to be
considered. These are discussed in
http://www.seai.ie/Your_Business/Public_Sector/Energy_Performance_Contacts_and_Guar
antees.pdf. The will be discussed in detail in the Framework guidance materials.
8. What is the role of Monitoring and Verification (M&V) to agree savings and payments?
M&V is key to agreeing savings and making payments. The preferred method is the
International Performance Measurement and Verification Protocol (IPMVP).
9. What size projects are suitable for an EPC contract structure?
Typically medium to large energy users in the industrial, commercial and public sectors
where the capital value of the energy saving project is greater than €500,000 per annum.
Smaller projects can be funded directly by the company/public sector body. Although these
are guidelines only and each project may be different. It is recommended to discuss projects
as early as possible with ESCOS and sources of financing.
SEAI Contact Details
Public Sector Projects
Alan Ryan
alan.ryan@seai.ie
Public Sector Programme Manager, SEAI
Ph +353-1- 8082027
Private Sector Projects
Ivan Sproule
Manager Business Programmes, SEAI
Ivan.sproule@seai.ie
Ph +353 -71- 939 1533
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