Commercial viability of privately financed heating systems in Europe — a case study

Abstract

This paper presents a detailed case study of how a European heating contractor analysed the commercial viability of privately financing a critical component of the construction of new apartment heating systems in return for ongoing maintenance contracts. The adaptation of some of the concepts of more complex concession or Build Own Operate and Transfer (BOOT) contract arrangements for use on a small scale project are discussed. Some details of this simple form of privately financed contact are presented. Specifics of the funding mix between construction and fitout costs, capital equipment costs and ongoing maintenance agreements are discussed and related to the market price for energy. The e..