Performance Contracting

Once investments in EE are proven profitable, another form of financing, called performance contracting, often carried out by ESCOs, is possible. This is a large and growing source of financing EE in many developed countries. In this financing, the savings are shared between the company and the performance contractor. The advantage for companies is that energy efficiency can be increased without making any initial capital investment. Performance contracting has a growing trend because of its win-win situation. Everyone comes out as a winner: businesses, government and the taxpayer. According to the EBRD's 'Mechanisms to Finance Climate Friendly Technologies,' 'Returns from performance contracts range from 20-40 per cent'.20

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Renewable Energy 101

Renewable Energy 101

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.

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