Extended project terms or building cost allowances allow to include measures with longer payback times, like heating, cooling requirements, electricity requirements through WHR, integrated PV modules, process steam requirements or entire building envelopes. ESIPL gives clients, opportunity to outsource technical and economic risks related to energy supply activities (including planning, installation, operation, maintenance and financing of equipment for heating, cooling or electricity generation) to ESIPL and to buy services instead of individual components. ESC often includes a supply of final energy through the ESCO.
ESIPL’s remuneration is performance based and depends on the useful energy output delivered, the ESC model provides an incentive to increase the efficiency of the energy conversion and to reduce primary energy demand. The contract covers the outcome and all costs of the services, as well as the commercial, technical and operational risks of the project.
The benefits of ESC are a significant boost in efficiency, clear and optimized operational costs, more supply assurance and the application of the most recent safety standards. Customers do not need to worry about their energy supply since this business model gives to the building/plant owner the opportunity to outsource technical and economic risks associated with energy supply related activities to a professional party.
Objectives of the ESC service model is to optimize efficiency of the energy supply and provide security of supply. ESC includes supply of final energy through the ESCO. Finally, there is an increase in environmental performance.
It is a proven model in new and existing public, industrial, commercial and large residential buildings (for which minimum project sizes to be economically viable have been specified).
“How” (value chain, activities, resources)
ESIPL supplies useful energy such as hot water, steam, electricity or cooling from a wide variety of technologies based on conventional or renewable sources.
The business model encompasses the entire process from the purchasing of basic engineering to the delivery and invoicing of energy. Financing, engineering design, planning, constructing, operation and maintenance of energy production plants as well as management of energy distribution are all included in the complete service package.
Technologies applied typically are efficient Waste Heat Recovery Units, combined heat and power (CHP) systems (gas turbines and reciprocating engines), Tri-generation (CCHP) Combined Cooling, Heating& Power, solar thermal and solar PV installations. Energy Supply Contracting is suitable for the implementation of all the above mentioned interventions, and their energy outputs can usually be measured with little effort through electricity or heat meters.