Key challenges in executing energy-savings performance contracts in public buildings: Taiwan experience

Abstract

With the trend toward energy conservation and carbon reduction in public procurement, Energy-Saving Performance Contracting (ESPC) has been getting a lot of attention for lowering the financial burden on the public sector to improve the energy performance of buildings. In Taiwan, there have been 115 ESPC projects worth NT$1.8 billion awarded in the public and private sectors from 2006 to 2014. The practical experience accumulated shows that there still exist deficiencies in the ESPC system, and there are also lessons to be learned. This paper discusses five key challenges of executing energy-saving performance contracts in public building projects. These findings can be helpful for countries and organizations that are applying or intend to apply ESPC to realize more efficient and effective procurement systems and achieve better project performance.

Keywords:

• Performance-based contracts
• energy-saving performance-guarantee project
• energy service companies
• contract terms
• lessons learned