Although the municipal council decided for a nine-year contract period, the revenues coming from ECMs could be partly integrated in the payments for the NERMs part of the ESPC project.
Assuming that the average lifetime of all NERMs is 20 years and the ESPC contract period is nine years, the residual value has to be taken into account.
000 [euro] leaves an overlap of savings of 13,000 [euro] to be used to co-fund the NERMs annual cost balance.
The annuity and maintenance costs for the NERMs are 110.
The replacement of equipment at the end of its life cycle and the maintenance of the newly installed NERMs equipment by the ESCO saves avoided maintenance costs of 26,000 [euro]/yr.
The extra annual costs to be paid by the building owner for the NERMs in an advanced ESPC contract period of nine years is calculated as:
The amount that must be paid by the building owner to implement NERMs is influenced by the contract period of the ESPC: a calculation of a 15-year contract period decreases the annuities for ECM and NERMs while the savings are kept stable.
In a 15-year ESPC, the building owner need not pay extra annual costs to set up the NERMs investments and saves 6400 [euro]/yr.
The maintenance savings of ECMs and NERMs are assumed to remain at the same level as during the ESPC contract period.
The annual cost and savings balance for ECMs and NERMs for years 10-20 is the following:
An analysis of the funding structures was done on a pilot case study where the typical scope of measures carried out in an ESPC were increased from typical HVAC measures to biomass district heating and NERMs (refurbishment of a swimming pool).
The ESPC business model provides a guarantee for energy and maintenance cost savings and for both NERMs and ECMs investment costs.