Environmental Engineering Reference
In-Depth Information
STANDARD PROJECT
ESCO PROJECT
Electricity
Suppliers
Maintenance
Energy
Consultants
Electricity
Suppliers
Maintenance
Installers
Energy
Consultants
CLIENT
ESCO
CLIENT
Financing
Equipment
Providers
Installers
Financing
Equipment
Providers
Fig. 2 ESCO interactions with necessary players.
Source
Prepared in-house
2.1 Technological Areas in Which the Model Can Be Applied
The application of the ESCO model is generally limited to the installation, reno-
vation, implementation and/or maintenance of the following technologies: lighting,
energy management devices and software, solar thermal for hot water and space
heating, combined heat and power appliances, insulation, HVAC, cooking and
refrigeration appliances and product manufacturing equipment [
5
]. ESCO projects
vary in complexity depending on the characteristics of the technologies being used,
the combination of technologies installed and the related regulations that need to be
complied with in order to install each technology. Another important factor that
determines the overall risk, and therefore economic viability, of an ESCO project is
the degree to which future savings can be guaranteed. For instance, installing LED
bulbs is considered
for ESCOs because the savings are easily
calculated and the regulatory procedures necessary for the project are minimal. On
the other hand, HVAC replacements involve more complex permits and savings
calculations, which may increase the perceived risk of the customer as well as that
of the ESCO.
“
low-hanging fruit
”
2.2 Drivers of the ESCO Industry
There are many conditions that have collaborated to the birth and continuous rise of
the ESCO market. Over the next several years, the global ESCO industry is
expected to maintain or exceed its current growth trajectory due to factors such as:
(a) rising energy prices, (b) concerns surrounding increasing greenhouse gas
emissions and climate change, and (c) challenges in obtaining sites and permits for
new power plants and major transmission facilities [
11
]. As it can be seen, the main
Search WWH ::
Custom Search