The IEEFP provides information regarding Energy Service Companies (ESCos), their services, and the performance contracting process. It details two common approaches to financing, including shared savings and guaranteed savings financing vehicles, and admits that loan financing companies have a relatively low understanding with regards to energy efficiency projects and the potential risks and rewards that exist.
The IEEFP protocol provides an overview and details regarding topics germane to the development and financing of EE projects. These include:
- Performance risks due to savings estimates, implementation, and persistence (operation)
- Risk mitigation methods
- Typical contracting terms
- Components of an investment grade audit
- Measurement and Verification methods
- Loan evaluation procedures
These protocols can be used together, first to provide general oversight into the EE project development process, financing options, and potentials for risk (IEEFP), and then to provide a clear process for addressing these tasks and potential issues with accepted methodologies, processes and resources (ICP). Ultimately providing a detailed conception and clear process for development of an EE project while reducing risk, resulting in an investor-friendly, robust project primed for investment.
Author: Tracy Phillips, ICP Technical Lead