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The New Energy Economy: Financial Models for Energy Infrastructure Modernization

Energy infrastructure modernization can deliver significant operational, financial, and resilience benefits, but selecting the right funding approach is critical. Discover how organizations are using ESPCs, Design-Build/EPC, PPAs, Energy-as-a-Service (EaaS), and grants and incentives to fund energy efficiency, renewable energy, and infrastructure renewal projects while balancing risk, capital requirements, and ownership considerations.
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What's inside this guide...

Evaluate energy infrastructure investments using Total Cost of Ownership (TCO) and capital planning strategies.
Compare ESPCs, Design-Build/EPC, PPAs, and Energy-as-a-Service to identify the ideal delivery approach for your organization.
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Discover how grants, tax credits, and incentives can help improve project economics and accelerate modernization efforts.
Learn practical strategies to address deferred maintenance, energy efficiency, and resilience goals while managing capital constraints.

Common approaches include Energy Savings Performance Contracts (ESPCs), Design-Build/EPC, Power Purchase Agreements (PPAs), Energy-as-a-Service (EaaS), and grants and incentives. Each model offers different benefits, applications, funding structures, and ownership considerations.

Several financing models can reduce or eliminate upfront capital requirements. ESPCs use guaranteed energy savings to repay project costs, PPAs provide access to renewable energy through long-term energy purchase agreements, and EaaS enables organizations to pay for energy services rather than own and operate infrastructure assets directly.

The right approach depends on available capital, project objectives, risk tolerance, operational requirements, sustainability goals, and ownership preferences. Organizations should evaluate each financing and project delivery model based on how well it aligns with their financial and infrastructure priorities.

An ESPC uses guaranteed energy savings to fund infrastructure improvements over time, allowing project costs to be repaid through reduced energy consumption. Energy-as-a-Service is a service-based approach in which organizations pay for energy services while an experienced provider manages infrastructure performance and ongoing operations.

Total Cost of Ownership provides a comprehensive view of the costs associated with acquiring, operating, maintaining, and renewing infrastructure assets over their lifecycle. Understanding TCO helps organizations identify long-term cost-saving opportunities, allocate resources effectively, and make more informed investment decisions.

Grants, tax credits, rebates, and other incentives can help reduce project costs and improve financial outcomes. Depending on eligibility, these resources may support energy efficiency improvements, renewable energy projects, resilience initiatives, and broader infrastructure modernization efforts.

Yes. Financing and project delivery approaches such as ESPCs, Design-Build/EPC, and EaaS can help organizations replace aging equipment, reduce deferred maintenance backlogs, improve efficiency, and modernize critical infrastructure while managing budget constraints.

Power Purchase Agreements allow organizations to procure renewable energy through a long-term contract while a third-party developer funds, owns, operates, and maintains the energy system. This approach can provide predictable energy costs while avoiding upfront ownership expenses.

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