The energy savings insurance is an insurance policy to cover clients in the event that promised energy savings are not achieved, and when the technology provider cannot fulfil the commitment to compensate for them.
The characteristics of the energy savings insurance are:
Provides an increased level of guarantee that reduces the energy efficiency investment risk for clients by ensuring TP’s savings guarantee commitment.
Increases the commercial banks’ willingness to lend to the clients for projects under the ESI model, given the reduced default risk.
The energy savings insurance is a surety bond type of insurance, which is a contractual agreement among three parties: the technology provider, the insurance company and the client.
The energy savings insurance is linked to the standarised contract and is triggered if specific clauses of the contract are not met.
In case the reported energy savings are not agreed by the client and technology provider, an arbitration process is initiated. The validation entity carries out the arbitration procedure, which includes evaluating the reported energy savings and assessing potential energy savings defaults to be compensated to the client.
In each of the three countries, we are partnering with insurance companies that are ready to offer the ESI!
