EUROSTAT has clarified how to record energy performance contracts in public accounts. This is expected to boost the investment in (energy) renovation of public buildings (municipal building, schools, etc). Indeed, one of the key benefits for energetic renovation in public buildings through Energy Performance Contracts (EPC) used to be that the investment appeared on the financial balance sheet of the ESCO. Therefore, the national debt did not increase. This was logical because, in an energy performance contract, the ESCO takes the full investment risk because it gives an energy saving guarantee.
Due to the debt crisis, Europe has taken measures that made that energy saving investments in all cases, including energy performance contracts, had to be booked as national debt, as from 2014. This was prescribed by Eurostat.
This limitation was not only illogical because the investment risk in an EPC contract lies with the ESCO – the ESCO takes all the risk indeed but is also contradicts Europe’s energy-saving goals.
Factor4, in collaboration with other EPC experts in Belgium and abroad, took a number of initiatives to reverse this illogical decision of Europe.
And with success, because on September 19, 2017, Eurostat published a new, more logical guideline that allows energy renovation through energy performance contracts under certain circumstances without increasing national debt.
Thanks to the new guideline, energy renovation of buildings through an energy performance contract will be even more interesting for public authorities.
An explanation about the new EUROSTAT Guidance Note is provided in this video: https://www.youtube.com/watch?v=1oH2TrvQefs