Energy performance contracts with circular criteria

Flemish Energy Company (VEB) includes circular criteria in its EPCs

The Flemish Energy Company (VEB) helps its customers conclude a successful energy performance contract (EPC) with an energy service company (ESCO). The purpose of such a contract is a guaranteed and permanent reduction in energy consumption. ESCO invests in energy-saving measures, and receives part of the budget saved for doing so. The VEB in turn provides the technical, legal, and project management expertise required to successfully complete the project.

In the context of the Green Deal Circular Procurement, VEB decided to commit to circular criteria for their EPCs, for which the company engaged consultancy firms Factor 4 and Totem.

VEB now possesses a useful digital instrument that allows circularity to be included in the costs for all their projects during procurement. Including circular award criteria and KPIs in the contract documents means all those involved work together to achieve the common goal: a win-win, with respect for circularity, comfort and budget. VUB and Sint-Niklaas are among those who have already signed an energy performance contract with circular criteria.