Energy Performance Contracts (EPC) & ESCOs6 / 12
EPC Risks & Mitigants
Shortfall risk (savings < forecast); guaranteed savings clauses; M&V disputes.
10 min read
Energy performance contracts transfer much risk to the ESCO, but they are not risk-free for the client. Long-term contracts based on measured savings create their own complexities, and understanding the risks - and how to manage them - is essential to a successful EPC.