A Literature Review on Energy Performance Contracting Project Financing

Abstract

Under the global "dual carbon" goals, Energy Performance Contracting (EPC) has become the core market-oriented model for energy conservation and emission reduction, playing a significant role in the transformation of high-energy-consumption industries and building energy efficiency retrofits. However, financing difficulties have severely restricted its large-scale promotion. This paper focuses on the core issues of overcoming financing difficulties, model innovation, and scenario adaptation for EPC projects, systematically reviewing relevant literature from four dimensions: EPC theory and practice, project financing, and EPC project financing theory and practice. The study finds that the difficulties in financing EPC projects stem from five major pain points: high project risks, insufficient ESCO qualifications, and lack of collateral. Theoretical research focuses on innovative paths such as building a risk management and control system and integrating carbon trading. At the practical level, research directions such as optimizing contract terms and adapting to diverse scenarios have been formed. Adaptation solutions for characteristic scenarios such as rural energy transformation in China and renovation of old apartment buildings in Slovakia have been explored. Existing research covers various aspects of theory and practice, but there is still room for expansion in areas such as policy adaptation in different regions and cross-industry financing scheme migration. By integrating research threads, this paper clarifies the strengths and weaknesses of existing research, providing theoretical support for the construction of targeted financing solutions and the improvement of policy systems in the future, thereby assisting the EPC model in fully exerting its energy conservation and carbon reduction efficiency.