Abstract:Energy Performance Contracting (EPC), as a model of building energy conservation, has significant effects in improving energy efficiency and alleviating energy pressure. However, because the Energy Performance Contracting has been introduced into our country for a short time, there are many problems in practical applications. Aiming at the problem that the current formal contract cannot effectively motivate the EPC partners to work together, with the help of principal-agent theory, we analyze the two parties' cooperative relationship under the non-contractual relationship and explore the incentive effect of the relationship contract. Studies have shown that the system benefits of energy-saving projects cannot be optimal under formal contracts. After the introduction of the relationship contract, the two parties can work together through "self-implementation" commitments to optimize the system benefits of energy-saving projects.