NGE ENERGY SERVICE AGREEMENT
Funding options for your
energy efficiency project
NGE can make your investment in energy efficiency return a positive cash flow from day one. How? We offer our customers project funding, for all types of energy and water efficiency retrofit works. The following introduces and compares NGE’s core project models, the NGE Services Agreement and the Energy Performance Contract.
OPTION 1: FUNDED BY NGE
NGE Services Agreement
With this model, NGE funds the full capital cost of the project on your behalf. The ESA offers performance-based savings that align ESG goals with financial objectives. Structured to always be cash flow positive, you invest no upfront capital or debt and externalize your risk, and over the term of ESA, your energy savings pay for the project.
Any equipment that is installed to achieve the savings is held on NGE’s balance sheet for the duration of the contract, making this model 100% off-balance sheet for you.
Savings are guaranteed, and measurement in accordance with the International Performance Measurement and Verification Protocol (IPMVP) standards is used to calculate over or under-delivered savings.
OPTION 2: FUNDED BY CUSTOMER
Energy Performance Contract
Energy Performance Contracting (EPC) is a low-risk method of implementing energy and water efficiency projects across a single property or portfolio of properties.
The consumption savings proposed in an EPC are guaranteed for the full term of the contract, usually between 5 and 15 years.
The longer payback period and robust risk management enable larger energy and water infrastructure upgrades, plus installation of new plant and equipment, including onsite generation.