P.Xu et aL Energy Policy 39(2011)7389-7398 7395 Table 4 Table 6 Cluster matrix after varimax rotation Six clusters extracted based on factor analysis. Component Clusters CSFs 1 2 Cluster1 project organization .CSF19 appropriate organization structure process .CSF5 effective coordination CSF19 0.848 .CSF18 technical background of CSF5 0.771 project team CSF18 0.687 .CSF17 organizing skill of leader CSF17 0.652 ◆CsF2 trust CSP 0.612 CSF11 project objectives control CSF11 0.599 mechanism CSF9 0.819 CSF12 0.766 Cluster2 EPC project financing .CSF9 credit of ESCOs and clients CSF20 0.700 for hotel retrofit CSF12 hotel operation status CSES 0.612 CSF20 financing institutes'awareness to CSF16 0.771 EPC CSF1 0.770 .CSF8 project financial status CSF14 0.587 CSF6 0.775 CSF4 0.641 Cluster3 knowledge and .CSF16 clients'awareness of to EPC 0.548 innovation of EPC,SD,and M&V ·CsF1 accurate M&V CSF3 .CSF14 clients'and ESCOs'awareness to CSF15 0.450 5F7 0.755 SD theory CSF10 0.746 CSF13 0.862 Cluster4 implementation CSF6 sustainable development strategy CSF21 0.532 0.539 of SD strategy planning CSF4 available technology CSF3 control mechanism of sustainable development strategy Table 5 ·CSF15 policy support Final statistic of principle component analysis. Cluster5 contracting ●CsF7 savings share Clusters Eigenvalues Percentage Cumulative percentage .CSF10 task and risk allocation of variance of variance Cluster6 external economic .CSF13 economic environment 3794 18.065 18.065 2.788 environment CSF21 availability of financing market 13.276 31.341 2.117 10.082 41.424 4 2.071 9.860 51283 5 1.789 8.520 59.804 6 1.431 6.814 66.618 EPC model is meant to create a win-win situation in energy efficiency projects.Collaboration and partnership are crucial for among the CSFs under each of the clusters,the six extracted project success organization,which need trust and effective clusters can be reasonably interpreted as follows:project organi- coordination.Trust can be defined as the belief that a party zation process,EPC project financing for hotel retrofit,knowledge can reliably fulfill its obligations in an exchange relationship and innovation of EPC,SD,and M&V,implementation of SD (Chen and Chen,2007).One reason for partnering failure is poor strategy,contracting,and external economic environment.The coordination of activities.In order to achieve project objective, six clusters and their respective constituents are presented in effective coordination is necessary,which is also a requirement to Table 6.The associated explanations regarding these clusters in project manager's organizing skill.In questionnaire survey,both order of importance are as follows. these two factors were considered in high level significance. Good planning and objective control are obviously important 4.2.2.Cluster 1:project organization for project organization.Chua et al.(1999)indicated "interactive The six extracted CSFs significant for cluster 1 are all related to process"as one of the project success factors and refers to the requirement of project organization including,appropriate planning,communication,monitoring and control,and project organization structure,effective coordination,team members' organization throughout the project life.Identifying project orga- technical background,organizing skill of leader,trust,and project nization structure and project objectives control mechanism is objectives control mechanism.These ingredients required for EPC the key mission of project organization,which directly affects project success are similar to those required for most construction project success performance. projects.The first step to organize a project is to establish a team. A team leader,here project manager,is the person who provides guidance,instruction,direction,leadership to a group of other 4.2.3.Cluster 2:EPC project financing for hotel retrofit individuals for the purpose of achieving a key result or group of The four CSFs in this cluster indicate financing package for EPC aligned results.Effective project managers are essential for project in hotel retrofit,including credit of ESCO and client,hotel project success (Belassi and Tukel,1996;Chua et al.,1999;Chan operation status,awareness of financing institute to EPC,and et al.,2004).The project manager is in charge of the project and project financial status.According to the concept of EPC mechan- has sufficient authority,personality,and reputation to ensure ism,EPC is a financing mechanism.A number of financial instru- that everything that need to be done for the benefit of the ments may be used in project financing.such as debt,equity. project are done(Chua et al 1999).Besides,technical background mezzanine finance,contractor and clients credit,or sureties. and skill of team members is stressed by researchers as one of Revenue stream of the project is the basis of project finance;so the key reasons for project success (Belassi and Tukel,1996; financial status of project is important for project financing from Chan et al.,2004). financing institute.among the CSFs under each of the clusters, the six extracted clusters can be reasonably interpreted as follows: project organi￾zation process, EPC project financing for hotel retrofit, knowledge and innovation of EPC, SD, and M&V, implementation of SD strategy, contracting, and external economic environment. The six clusters and their respective constituents are presented in Table 6. The associated explanations regarding these clusters in order of importance are as follows. 4.2.2. Cluster 1: project organization The six extracted CSFs significant for cluster 1 are all related to the requirement of project organization including, appropriate organization structure, effective coordination, team members’ technical background, organizing skill of leader, trust, and project objectives control mechanism. These ingredients required for EPC project success are similar to those required for most construction projects. The first step to organize a project is to establish a team. A team leader, here project manager, is the person who provides guidance, instruction, direction, leadership to a group of other individuals for the purpose of achieving a key result or group of aligned results. Effective project managers are essential for project success (Belassi and Tukel, 1996; Chua et al., 1999; Chan et al., 2004). The project manager is in charge of the project and has sufficient authority, personality, and reputation to ensure that everything that need to be done for the benefit of the project are done (Chua et al., 1999). Besides, technical background and skill of team members is stressed by researchers as one of the key reasons for project success (Belassi and Tukel, 1996; Chan et al., 2004). EPC model is meant to create a winwin situation in energy efficiency projects. Collaboration and partnership are crucial for project success organization, which need trust and effective coordination. Trust can be defined as the belief that a party can reliably fulfill its obligations in an exchange relationship (Chen and Chen, 2007). One reason for partnering failure is poor coordination of activities. In order to achieve project objective, effective coordination is necessary, which is also a requirement to project manager’s organizing skill. In questionnaire survey, both these two factors were considered in high level significance. Good planning and objective control are obviously important for project organization. Chua et al. (1999) indicated ‘‘interactive process’’ as one of the project success factors and refers to planning, communication, monitoring and control, and project organization throughout the project life. Identifying project orga￾nization structure and project objectives control mechanism is the key mission of project organization, which directly affects project success performance. 4.2.3. Cluster 2: EPC project financing for hotel retrofit The four CSFs in this cluster indicate financing package for EPC project in hotel retrofit, including credit of ESCO and client, hotel operation status, awareness of financing institute to EPC, and project financial status. According to the concept of EPC mechan￾ism, EPC is a financing mechanism. A number of financial instru￾ments may be used in project financing, such as debt, equity, mezzanine finance, contractor and clients credit, or sureties. Revenue stream of the project is the basis of project finance; so financial status of project is important for project financing from financing institute. Table 4 Cluster matrix after varimax rotation. Component 123456 CSF19 0.848 CSF5 0.771 CSF18 0.687 CSF17 0.652 CSF2 0.612 CSF11 0.599 CSF9 0.819 CSF12 0.766 CSF20 0.700 CSF8 0.612 CSF16 0.771 CSF1 0.770 CSF14 0.587 CSF6 0.775 CSF4 0.641 CSF3 0.548 CSF15 0.450 CSF7 0.755 CSF10 0.746 CSF13 0.862 CSF21 0.532 0.539 Table 5 Final statistic of principle component analysis. Clusters Eigenvalues Percentage of variance Cumulative percentage of variance 1 3.794 18.065 18.065 2 2.788 13.276 31.341 3 2.117 10.082 41.424 4 2.071 9.860 51.283 5 1.789 8.520 59.804 6 1.431 6.814 66.618 Table 6 Six clusters extracted based on factor analysis. Clusters CSFs Cluster1 project organization process CSF19 appropriate organization structure CSF5 effective coordination CSF18 technical background of project team CSF17 organizing skill of leader CSF2 trust CSF11 project objectives control mechanism Cluster2 EPC project financing for hotel retrofit CSF9 credit of ESCOs and clients CSF12 hotel operation status CSF20 financing institutes’ awareness to EPC CSF8 project financial status Cluster3 knowledge and innovation of EPC, SD, and M&V CSF16 clients’ awareness of to EPC CSF1 accurate M&V CSF14 clients’ and ESCOs’ awareness to SD theory Cluster4 implementation of SD strategy CSF6 sustainable development strategy planning CSF4 available technology CSF3 control mechanism of sustainable development strategy CSF15 policy support Cluster5 contracting CSF7 savings share CSF10 task and risk allocation Cluster6 external economic environment CSF13 economic environment CSF21 availability of financing market P. Xu et al. / Energy Policy 39 (2011) 7389–7398 7395