Facilities that do not want to find capital for energy efficiency investment turn to the model that "guarantees" savings: Energy Performance Contract (EPS). ESCO (Energy Service Company) finances or implements the investment; Repayment is made through savings sharing. Efficiency Enhancement Project (VAP) support under 5627 can also cover EPS projects — but without measurement and verification (M&V) of the guaranteed savings, neither the contract nor the grant is secured.
30%
VAP support rate (2026)
Up to project cost
27 million TL
VAP upper limit
2026 per project
≥ 70%
Final payment term
Confirmed savings with M&V
How does the EPS model work?
In EPS, the savings sharing rate, base consumption and measurement methodology between the ESCO and the facility are written into the contract. Typical flow: (1) energy audit and baseline, (2) investment (lighting, motor, HVAC, automation), (3) monitoring period, (4) savings sharing. The guaranteed savings claim must be based on the IPMVP (International Performance Measurement and Verification Protocol) or equivalent M&V standard.
| Model | Financing | Risk | For whom? |
|---|---|---|---|
| Shared savings | ESCO | Medium — M&V critical | Facility with limited capital |
| Guaranteed savings | ESCO / mixed | ESCO performance risk | Management seeking net savings |
| Renting (leasing) | third party | Low — rental cost | off-balance sheet preference |
| Outsourcing | ESCO operates | operational | Building/campus management |
Baseline and M&V: the backbone of the contract
Baseline is the normalized consumption profile before investment (kWh, season, number of production). The same normalization is applied during the monitoring period; difference = savings. Air temperature, production tonnage and shift change should be defined as correction factors in the M&V plan. OSOS 15-minute data and submeters are the primary evidence for M&V.
Checklist in the contract
- Baseline period and normalization formula
- M&V protocol (IPMVP Option A/B/C)
- Savings sharing rate and duration
- Performance guarantee and penalty clause
- Equipment ownership and maintenance responsibility
- OSOS/submeter access rights
- Early termination and transfer conditions
ENOPTIMAL: savings verification engine
In EPS and VAP projects, ENOPTIMAL accelerates M&V reports by keeping baseline and monitoring period OSOS data in a single source. EPS submeters in our engine, HVAC and compressed air efficiency guide can be mapped to EPS KPIs.
Conclusion
EPS transforms energy investment into “guaranteed service”; Success depends on the measurement infrastructure. Reference in ESCO selection, M&V methodology and OSOS integration are the core of technical due diligence. You can get an EPS/VAP data preparation evaluation with the demo.