Energy Services - (ESCO) of AsiaWatt Company
AsiaWatt Engineering Company is one of the pioneering and active energy service companies in the field of implementing energy consumption optimization projects in the form of ESCO in the country and has succeeded in implementing several energy service projects in the form of ESCO for the first time in the country. and is ready to implement energy service projects in various building, industry and power plant sectors.
Definition of ESCO and activities of energy services and energy service companies
Esco industry is a multi-sector industry and an economic driver. There are many inter-departmental interactions in this industry and many interactive models are applicable for them
An energy service company (ESCO) is a company that designs, implements and finances energy efficiency improvement projects. Some of the services provided by these companies include the development, design and financing of energy efficiency projects, installation and maintenance of energy efficiency project equipment, measurement and verification of savings resulting from energy efficiency projects. By guaranteeing the achievement of a certain level of energy efficiency, this company assumes all the risks of the project and provides its cost and profit from energy savings.
The main feature of the energy service company compared to the consulting company and the equipment contractors is in the contract ((performance contracts)). In the functional contract, the project manager receives the costs of the project implementation from the profit from the project implementation. In most of these contracts, in addition to installing the equipment, the energy service company can be responsible for the maintenance of all or part of the new equipment during the life of the project and even 7 to 10 years after the completion of the project.
This type of contract is the most attractive way of implementing energy efficiency projects for companies that are facing limited financial resources or do not intend to increase their financial obligations for some reason.
The basis of work of energy service companies is as follows
Based on this plan, practically the fees and costs of implementing energy consumption optimization projects are provided from the savings and efficiency improvement achieved, and after the completion of the contract, practically all the benefits of the implementation of the project will reach the employer or the client of Esco, and practically a complete project It will be a win-win.
One of the most sensitive parts of the ESCO plan is the content and terms of the ESCO contract
Main provisions of contracts based on energy efficiency
- Determining the basic conditions of the desired unit in terms of energy consumption and its cost
- Methods of measuring and confirming energy savings
- Estimation of energy saving potential
- Determining methods of financial return
- Energy saving guaranteed
- Provide project details and how to manage other services
- Project time estimation
- Other required services
ESCO contract models
Different stages of ESCO projects
Measurement and validation
One of the most sensitive parts of the ESCO contract is the issue of measuring and validating the amount of savings achieved after the implementation of the ESCO project.
For M&V discussion, there are various protocols in the world, some of the famous protocols are shown in the figure below. Of course, the M&V method can be agreed upon in certain cases with the agreement of Esco and the employer
Esco services have different beneficiaries who are divided into two categories as follows:
- Direct stakeholders: including Esco, M&V Company and the customer.
- Indirect stakeholders: including the government, the trade association of energy service companies, financial and insurance institutions.
Based on this classification, the indirect beneficiaries play the role of facilitator and foundation by carrying out activities such as drafting the necessary laws and regulations, training and awareness, defending trade union rights, resolving disputes, financing and assuming risk. The projects provide effective and economic activities for the direct beneficiaries.
