ESCO funding
Includes
• Collection and processing of past energy consumption data, audit, general assessment of current building energy status.
• Summarizing investment proposals including potential renewable energy developments, presenting cost saving opportunities.
• Requests for quotations for an ESCO partnership, comparative analysis, recommendation, decision support.
• Control of construction works during design and realization phases, supervision of the first part of operation phase.
Attributes
In order to fund energy efficiency and renewable energy projects, one of the best opportunities is given by ESCO funding. The key point in an ESCO partnership is that the financing of the project is ensured by the cost savings achieved by the investment itself, and the term of such contracts is typically between five to ten years.
In our experience, it is crucial that such projects have someone auditing the property who has a clear overview of the possible technical alternatives. Then comes the ESCO partner with different offers on hand for the construction work, including design and operation. Our company can be at your convenience for the preparation and auditing tasks, and also in requesting and assessing the incoming ESCO offers. Later, during the realization phase, we can follow the starting and operation of new equipment, and monitor the real savings in order to avoid any unexpected surprises. In the case of ESCO offers, just as with banking, or energy supplier companies, it is a real challenge to get a clear comparison of complex contract conditions and to recognize possible legal land-mines. This requires an experienced partner, and we can support you in this with our outstanding knowledge and competence.
What’s the benefit?
Traditional methods of financing of energy related investments can be very cumbersome, and in the case of banks it is always an issue to find the right tone because of the lack of specialized knowledge and the exaggerations of risk sensitivity.
In our experience, ESCO can be a viable solution for such projects, with the additional benefit of saving the client from initial investment costs, and creates a fair division of the savings between the ESCO partner and the client.
Due to still missing standards and regulation in the field of energy investments, expertise in the topic is vital also to achieve a better bargaining position when negotiating with potential ESCO partners.
Outcome
The most problematic field of energy efficiency investments is finding the right funding sources, and an ESCO project is a flexible way of funding. By foreseeing preparation and by having a skilled partner to create real competition among potential sellers, together we can reach the target: to have more efficient, more valuable and cheaply operable buildings, offices, and facilities.
A real story…
We were able to conclude a contract with an eight year term, through hovelling a partnership, mediating and fostering the negotiations between office buildings, a housing block and a funding party. This was achieved with fair conditions satisfying all parties and with all warranty stipulations making the ESCO party accountable for real savings.