Energy performance contracting as an innovative tool for financing the building renovation in Slovakia, Central Europe

Abstract

The possibilities of using Energy Performance Contracting (EPC) are presented for Slovakia, Central Europe, including a case study performed for a building in Bratislava. The case study contained an inspection of the building, an energy audit with a proposal of energy efficiency measures, and profitability calculations for the measures. A package of suitable measures was created, and its suitability for financing by EPC was evaluated. The net present value quotient (NPVQ) was used to indicate the profitability of energy-saving measures. However, for EPC projects, the number of years in which the investment is returned is the most important. Therefore, payback was considered to be a more relevant indicator of profitability for EPC projects. With an adequate combination of energy efficiency measures, a payback period of 15 years was reached. This was acceptable considering that the building belonged to a municipality. The potential drawback of EPC is that it may not be feasible for complex renovations.