Abstract : To stimulate private sector investments and promote energy efficiency, in recent years through Public Private Partnership arrangements, the public sector uses private companies, the Energy Service Company (ESCO), to perform one or more activities related to the provision of energy services, and the contractual arrangements defining the contracting parties’ obligations and rights are traditionally based on Energy Performance Contracting (EPC).

Although EPC is a valuable model for delivering public energy efficiency projects, the adoption is still far from its vast potential mainly because of two unresolved issues: the dilemma of equally sharing the benefits between the public and private parties so as assuring a win-win condition, and the lack of adequate public procedures that support the selection of the most appropriate EPC schema given certain circumstances and projects’ characteristics. The existing literature have analyzed the advantages of EPC mechanism for delivering energy efficiency projects and explored the critical success factors of EPC. However, it does not provide any solution to address the issues that hamper the adoption of EPCs in public sector.