Energy renovation of tertiary buildings: how to scale up the use of EPCs

Energy performance contracts are struggling to take hold in the energy renovation sector for tertiary buildings. And yet, their combination of mandatory measurable results and optimised long-term operating costs offers landlords unprecedented opportunities to accelerate their decarbonisation in the French market.

To reduce energy consumption by 10%, 15%, even 20% thanks to the expertise of a provider committed to results: what more could tertiary-sector landlords dream of, given the regulatory timetable requiring them to intensity their decarbonisation efforts?

If they are to meet the targets set by DEET (the French tertiary eco-energy mechanism), which came into effect with the Tertiary Decree in 2019, i.e. a 60% reduction in building energy consumption by 31 December 2050, they will have no choice but to apply multiple levers. Of the range of tools and mechanisms available to them, one appears particularly promising: the energy performance contract (EPC).

How does it work? An EPC is a contractual agreement between a private service provider and a property owner, with the aim of improving energy performance in a building (tertiary, industrial, or private or social housing) through a package of renovation actions (works, equipment, services and benefits). What makes it special is the commitment to a result.

EPCs are based on a triple contractual principle: a guarantee of energy performance over a defined period; a correlation between the provider’s remuneration and the performance level achieved; and financial compensation to be paid if targets are not achieved.

“The EPC not only makes it easier to meet regulatory obligations and keep buildings attractive in energy terms, it also offers valuable advantages,” says Michael Sigda, Director of Commercial Development and Marketing at VINCI Energies. “There is an immediate return on investment for the landlord, an incentive for providers to maximise savings, and a contribution to reduced energy bills in the long term. It’s a tool that offers landlords total security. They are more likely to take the plunge, because the mechanism covers an extremely broad range of possible actions. Everyone can proceed at their own pace, prioritising whichever aspect they choose.”

A question of surface area

Building managers can choose between three main types of contracts: “supplies and systems” EPC, “works” EPC, and “global” EPC. The first applies to projects where the provider supplies building energy management systems, or energy production or distribution systems, and provides maintenance for the contract duration (usually between 3 and 12 years). The second type covers work on the building structure and requires longer for a return on investment. The third type combines the first two, including works, supplies and services over a period of more than 15 years.

The take-up of “works” and “global” EPCs currently remains limited in the private tertiary sector. According to the OID (Sustainable Property Observatory), 3% of private assets were subject to such a contract in 2023. Landlords are tending to focus their efforts on the first tier of reducing consumption 40% by 2030 as required by law, and prioritising operational and management improvements to their facilities. The smaller the surface area of their assets, the more reluctant managers are to mobilise the resources to formalise energy consumption reduction targets in contracts.

“The demand is there. Landlords realise they no longer have any other choice.”

EPCs can appear more obviously beneficial for certain categories of building. For example, larger buildings offer significant economies of scale, from setting up the contract to monitoring operational performance, and can therefore maximise the reduction in energy consumption. Similarly, the more energy-intensive the building, the greater the potential for immediate savings.

“The EPC is an ad hoc tool,” says Olivier Ortega, Legal Partner at LexCity Avocats, a specialist law firm that has worked on around 150 EPCs over the past 10 years. “Each building has its own characteristics. That’s why the audit and detailed works design phase, which can be long, is essential. It allows a detailed analysis of the building’s energy status, precise identification of potential energy savings (the building envelope; heating, ventilation and climate control systems; lighting; specific uses of spaces and facilities) and the size of the investment.”

Supporting the learning curve

How can the use of EPCs be scaled up to make it an integral component of tertiary building renovations? “As a tool, it can seem complex,” explains Marie-Camille Grange, head of OZAIQ, a business unit created by VINCI Energies in 2021 to manage EPCs and support business customers in their energy efficiency projects. “There is certainly work to be done to simplify the procedures and develop innovative financing mechanisms. In the meantime, it’s a question of communicating and explaining all the benefits of this contract type to our customers and contracting authority managers.”

“We are mostly involved in public projects,” continues Marie‑Camille Grange. “For example, for the town of Rueil-Malmaison, with a major contract covering six school groups, with a 40% energy consumption reduction target.”

Olivier Ortega also notes increasingly strong interest from the private sector. “The demand is there. Landlords realise they no longer have any other choice. The progressive upgrading of the targets set by DEET calls for radical approaches. Now more than ever, we have to encourage this momentum, to support the stakeholder learning curve by raising awareness and providing training, organising feedback sessions and disseminating best practice.”

In conclusion: “We must make EPCs a key component in the energy renovation of buildings.

03/16/2026