Energy performance contracts (EPCs), also called energy savings performance contracts (ESPCs), have long been employed by energy services companies (ESCOs) to perform projects that involve the installation of energy efficiency and conservation measures (ECMs) and other measures in federal, state, and municipal facilities. In the current financial environment, particularly in the governmental sector, EPCs can be a particularly attractive means of financing energy-related projects and should be considered. Data centers have not been a primary focus of EPC projects, but this appears to be a good time to give serious consideration to expanding the use of EPCs for data centers.
In an October, 2012, “Legal Perspectives” column titled, “Anatomy of an Energy Savings Guarantee,” I discussed the legal implications of energy savings guarantees. In an EPC, the energy savings guarantee is the heart of the agreement and the basis upon which the governmental owner of the facility is able to obtain financing.