Contracting

etrofits play a smaller role in bigger
refurbishments, the use of the target
facility may be reorganised causing a
more energy-intensive use of it (e.g.
more public visitors due to increased
attractiveness of the facility) and
consequently an increase in energy
consumption – although the energy
saving measure is operating properly.
In such a case, the performance of
the energy saving measure cannot
be monitored without taking into
account the change in usage. A
proper evaluation might result in an
unexpectedly higher specific energy
efficiency (e.g. heat demand per visitor
in a public pool).
Hence, the required type and number
of meters to monitor energy savings
has to be determined for each project
individually. If a project ends up
with energy performance that is
significantly different than expected,
an evaluation needs to be made
of whether the particular energy
consumer behaviour has changed, for
instance due to a different use of the
facility.
3.4/ Implementing and managing an internal revolving fund in a nutshell
Prerequisites for the introduction of
Internal Contracting
– Ability to assess energy
consumption and to investigate
saving measures and potentials
– Initial funding needed to start
investing in energy saving projects
and create returns
Purpose of a revolving fund:
– Avoiding annual budgeting
discussions
– Earmarking financial resources for
energy saving purposes
Operational aspects and investment
criteria:
– When selecting initial energy saving
measures, focus on short payback
periods and ensure that low
hanging fruit is targeted first
– To avoid misuse of the revolving
fund, it is important to ensure that
it is not used for other purposes
than saving energy costs
– Consult potential client
departments on their project
pipeline. Identify energy saving
measures which could be added.
– The payback time of the measure
must be shorter than the lifetime of
its technical parts
– Investment and pay back flows
have to be appropriate to the size
of the revolving fund: If projects
with a 5-year payback time are
targeted, the budget allowance
for the revolving fund should be
at least 3 times larger than total
annual expenses
– Lower expenses and shorten
payback time by including other
funding opportunities
– Stay on the safe side by calculating
economic efficiency without energy
price rises
– Payback-rates of Internal
Contracting investments should
not be rigidly linked to monetary
cost savings on energy bills, but
rather determined using a holistic
assessment of all energy-related
factors
– The more successful a fund
is, the faster the low-hanging
fruit is targeted. Consequently,
the revolving fund should be
continuously extended.
Infinite Solutions Guidebook – Internal Contracting