An investigation of the application of performance contracting for energy conservation in Hong Kong

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An investigation of the application of performance contracting for energy conservation in Hong Kong

 

Author: Chan, Kui-sing Eric
Title: An investigation of the application of performance contracting for energy conservation in Hong Kong
Degree: M.Sc.
Year: 1999
Subject: Energy conservation -- China -- Hong Kong
Performance contracts -- China -- Hong Kong
Hong Kong Polytechnic University -- Dissertations
Department: Multi-disciplinary Studies
Dept. of Building and Real Estate
Pages: 144 leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1485231
URI: http://theses.lib.polyu.edu.hk/handle/200/649
Abstract: This research describes an investigation into the application of performance contracting for energy conservation in Hong Kong with a view to establishing whether the extent of guaranteed energy savings are perceived as influenced by a number of human factors such as trust, culture, attitude and management commitment. A literature review was undertaken that identified the practices of energy conservation management and the historical development and current practices of the performance contracting for energy conservation with relevant models for the applications. It was concluded that the published literature had the following limitations: primarily applicable to the United State of America and United Kingdom; models and processes identified did not have an adequate practical content; and limited local practical case because performance contracting was newly introduced to Hong Kong. Upon completion of the literature review a research methodology was developed. Five interviews were carried out to collect empirical data and information from practitioners. The research methodology collated information to be compared with the findings from literature review. The approach utilized both the knowledge gained from the literature review and the conclusions from the empirical research. The research revealed that there is consensus that performance contracting can generate savings and the merits of adopting this contractual arrangement are also generally supported in the literature review. Similarly, as regards the key attributes of performance contracting, practitioners considered that energy savings were of paramount importance. The contract would not be successful without due consideration of technical issues such as setting up of energy baseline and human factors such as commitment at all levels with trust. There is an understanding that it is very imperative to have a thorough knowledge of the interrelationship between technical, financial and legal aspects of performance contracting. Findings of this research support the hypothesis, that is, by applying performance contracting for energy conservation, reduction in energy consumption and operation costs can be achieved. Human factors such as attitude, trust, culture and management commitment are factors affecting the success of performance contracting as perceived by Hong Kong practitioners.

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