1. What is ESCO Service ?

ESCO stands for Energy Service Company. ESCO refers to a company that provides management  services to improve energy efficiency. As well as other services. The promotion of cost reduction. And increasing the profitability of its customers in industry and commercial buildings. The mechanism of energy management ESCO, it is Energy Performance Contracting : EPC. Which is responsible for providing services to meet the agreed power-sharing deal between the company and customers.

Clients : That is the industrial or commercial building. To reduce energy use by the ESCO guarantees the savings.

Funding : Authorized investments for energy savings of the industrial or commercial of financial institutions, Bank, or the ESCO.

Priority of the ESCO

  • Monitoring of energy consumption. Include preparation of the goals and plans for energy conservation. And engineering design.
  • Documentation project.
  • Provide or help fund the project.
  • Supply or the supply, installation, construction, and maintenance.
  • Project Management.
  • Monitoring and evaluation of energy efficiency projects.
  • Warranty of energy saving.
  • Training and other services. Related to the energy saving.

Shows this process of energy conservation, energy management company.

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2. To invest in energy conservation by the ESCO (Energy Investment)

ESCO stands for Energy Service Company. ESCO refers to a company that provides management  services to improve energy efficiency. As well as other services. The promotion of cost reduction. And increasing the profitability of its customers in industry and commercial buildings. The mechanism of energy management ESCO, it is Energy Performance Contracting : EPC. Which is responsible for providing services to meet the agreed power-sharing deal between the company and customers.

Clients : That is the industrial or commercial building. To reduce energy use by the ESCO guarantees the savings.

Funding : Authorized investments for energy savings of the industrial or commercial of financial institutions, Bank, or the ESCO.

2.1 The client is invested by the borrower (Guaranteed Saving)

Clients who invest or borrow funds directly from the source. With a  EPC between borrowers and funding by the ESCO guarantees the energy savings to the borrower that the energy savings the project will be equal to or greater than the cost of the services to be paid on the investment. If the actual energy savings, the savings under the contract, then the ESCO will guarantee that the money is released to the service. But in the opposite way. If the economy is higher than that specified in the agreement. Recipients must be a limit to the ESCO that energy investments are structured in the form of loans and investments, as shown in Figure 1 and 2

Figure 1 percent in energy costs and maintenance of machinery / equipment of the industrial or commercial building. And the savings will be in effect from time to time to ensure energy conservation (Performance Guarantee) by the ESCO

Figure 2 Form of investment prospects of the borrower (Guaranteed Saving)

2.2 Investment by the ESCO is the borrower (Shared Saving)

The ESCO will invest this money and energy saving plan. The patient is responsible for paying the  fee. And bring the benefits of energy savings to be called Sharing Saving. It has ratio of fee have to pay for ESCO more than Guaranteed Saving. Because of ESCO to bear the risks. Forms of investment projects for energy companies can be classified as a major investment into 2 types.

Figure 3 Investment Management Company is an energy recovery (Shared Saving)

3. To measure and verify energy efficiency results (Measurement & Verification)

3.1 Monitoring and verification of energy savings

Measurement and verification of energy savings as well. The plan should include monitoring and verification of energy savings M & V plan should include the following information.

  • Details of conservation measures and energy savings are expected to receive
  • The scope of monitoring to determine the energy savings
  • Details of the terms and conditions. For reference, the base year (Base Year) and the estimated energy consumption in the establishment of the amount of energy used
  • How to identify the various schemes. That is used to change the reference
  • The investment budget. And the cost of energy conservation measures
  • Condition. Which is used to modify the way the measurements
  • Details on the energy conservation measures and procedures for delivery. Which is used in the following subjects

 to prove the energy efficiency of energy conservation measures
 Format the M & V is used to determine the energy savings
 Set the storage hypothesis. And how to analyze data clearly
 The position description is to be measured. Characteristics of the transition. The instrument
 read the witness and (Witnessing Protocol) to read the meter. Transmission process. Each instrument. To modify the instrument. And how to edit data is lost or can not be measured
 determine how the quality of the project
 The form of the M & V reports and presentations of energy each year

3.2 The process of monitoring and verification of energy savings

Measurement and verification of savings is particularly important in the energy conservation measures by the ESCO to correct the measurements. And that the energy savings will result in a payback period of the owner of the establishment. Process monitoring and verification of energy savings. It summarized as follows

  • Select a format suitable for the measurement of energy conservation measures. And if the correction. Change the energy
  • Performance and Energy-related information. For use as a reference base year (Base Year) and the.
    Evaluation for that to happen
  • Determine how energy conservation measures
  • Plan, audit and verify the energy savings (M & V Plan)
  • Design, installation and test equipment required under the M & V plan
  • Design, installation and test equipment required under the M & V plan
  • Collection of information and power up the device. After updating the measures already taken.
    Compared with reference data before the update. To store this information
  • Calculate and report energy savings in accordance with the plan (M & V Plan) has been placed on the examination. Measurement and verification of energy savings may be made by a central agency to ensure the results of the measurements

3.3 Energy Performance Contract

Specify how to think clearly in the M & V is important. Both methods are used. The data used to calculate the data on the use of energy. Energy consumption after installation in the year and the constant need to be set up. If there is no clear way of thinking then. Proven energy savings by the ESCO to the problem by the industrial or commercial building. It should explain how to achieve acceptance by both parties. Include a low maintenance device

This will guarantee the energy savings can be achieved if the energy savings guaranteed by the ESCO will be designed to measure. In accordance with parameters. Since the industrial or commercial building of these parameters are already configured. The factors, it allows to calculate the savings insurance

During each year of the warranty period, the ESCO is to monitor, audit and verification of energy savings and report send to industrial or commercial building within the specified period. The purpose of the report is to make energy savings of the ESCO