Dáil Éireann Debate, Tuesday - 23 April 2024
232. Deputy Darren O'Rourke asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to report on the review his Department is undertaking regarding the budgetary treatment of EPCs; when he expects this review to be completed and results published; and if he will make a statement on the matter. [17921/24]
View answerEnergy Performance Contracts (EPCs) are a form of Public Private Partnership (PPP), but are significantly different from ‘traditional’ PPPs. Under an EPC, an Energy Service Company (ESCO) takes responsibility for undertaking the energy efficiency upgrade of a building. In return, an agreed proportion of the resulting energy bill savings accrue to the ESCO rather than to the building owner. EPCs are very complex instruments, combining elements of a rental, a service, a lease, a purchase and a loan agreement. For EPCs to be worthwhile, it would need to be established that delivery capacity exists to actually achieve the desired volume of retrofit, in addition to all other NDP funded investments. The responsibility for the management and delivery of any individual energy performance contracts would rest with the individual sponsoring Minister and Department in each case.
The 2021 Review of Public Private Partnerships included a proposal to explore the feasibility of a specific initiative around EPCs as a method of financing improved energy efficiency of the public building stock where this can be funded by savings in energy budgets and on an off-balance sheet basis. Building on this, the NDP committed that a targeted review of the existing treatment of PPPs would be undertaken.
In line with this, my Department is currently undertaking a review of the budgetary treatment of EPCs. This review intends to explore whether EPCs are an attractive option to help deliver public sector retrofitting at this time and, if so, to identify what reforms may be necessary to support increased uptake of EPCs by public bodies. It is expected to be completed by the end of this year.
