Energy service company projects (ESCO)

 

ESCO project is a business model that represents intelligent energy solutions and is recognized worldwide as a company that develops, implements and finances projects for improving energy efficiency and reduction of operation and maintenance costs.

ESCO projects are financed from savings realized over the period that are contained in energy and maintenance costs. The area of operations for this type of company can be divided into private and public, or buildings sector (schools, kindergartens, offices, universities, hospitals, hotels, etc.), public lighting, industry and energy supply systems (district heating, cogeneration).

The goal of ESCO project is to provide the customer with lower cost for energy and maintenance installation of new equipment and optimizing energy systems. The basic requirement of ESCO project is higher current energy consumption, which is why ESCO projects are being implemented in existing buildings (reconstruction, rehabilitation, replacement or modernization projects) which allows comparison of current and future energy consumption.

It is common practice to conclude Energy Performance Contract or contractual arrangements between the user and the service provider on measures for energy efficiency improvement. Services payment (in whole or in part) is based on the contractually defined and achieved energy efficiency improvements as well as the fulfilment of other agreed criteria regarding achievements that have been made. The contractual arrangement may include a third party that provides capital for the implementation of the measures and charges the user a fee equivalent of the energy saved my implementing agreed measures (the third party may or may not be an ESCO).

 

ESCO projects are useful for increasing the competitiveness of business enterprises, they contribute to environment protection and promote sustainable development. As energy prices increase and are becoming a burden in the ordinary course of business, and the old, energy inefficient equipment is subject to frequent breakdowns and causes problems in business activities, more than 50% energy can be saved with simultaneous modernization. Light pollution from public lighting can be reduced for up to 30%, globally emissions of CO2 can also be reduced, locally same is true for SO2 , and the emission of soil and water pollutants, all depending on the type of project.

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