Environmental Engineering Reference
In-Depth Information
economic incentives available in Spain. Section
4
presents the current state of the
ESCO market within the Barcelona metropolitan context in the public and the
private sector. The
nal section is devoted to conclusions.
2 The Energy Services Company Model
An Energy Services Company (ESCO) is a tool to enhance the sustainable use of
energy through promoting energy ef
ciency and renewable energy resources. The
function of an ESCO is commonly known as Energy Performance Contracting (EPC).
In other words, an ESCO takes the
nancial risk of developing and performing
measures for an improvement in energy ef
ciency, and recovers the investment
through the energy cost savings derived from that intervention (see Fig.
1
).
Figure
2
depicts how the ESCO assumes the interaction with relevant players,
eliminating the need for the client to deal with them. It shows that the ESCO
s
remuneration is directly linked to the good performance of the various actors. Thus,
the maximum energy savings are ensured for the client.
The basic steps of an ESCO project can be divided into two major phases: before
and after the installation. At the beginning, a preliminary analysis of energy con-
sumption patterns is carried out to evaluate the savings potential. Then, a detailed
technical analysis is executed to detect inef
'
ciencies. If the client decides to con-
tinue with the installation, a formal contract is prepared and the project is executed.
Once the equipment is operating, a continuous guarantee phase starts and lasts until
the contract terminates. During this period, the ESCO monitors the installation and
takes any necessary corrective actions. In addition, a clause is usually included
stipulating a periodic revision of energy consumption in order to correct for any
deviations. For instance, if the actual consumption is less than expected, the energy
cost savings may be shared between the ESCO and the client. On the contrary, if the
client exceeds the expected consumption, the ESCO may assume the difference or,
if stipulated in the contract, the client must pay the difference.
ESCO model
20,000 €
15,000 €
10,000 €
5,000 €
0 €
2012
2013
2014
2015
2016
2017
2018
2019
2020
"Normal" consumption
ESCO fee
Actual saving
Fig. 1 Illustration of the energy cost savings using the ESCO model.
Source
Prepared in-house
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