Energy services company ( ESCO ) is a commercial or nonprofit business that provides a variety of energy solutions including the design and implementation of energy saving, retrofitting, energy conservation, energy outsourcing, power and energy supply, and risk management.
The new generation of ESCOs growing in the UK is now more focused on innovative financing methods. This includes off-balance sheet vehicles that have a variety of applicable equipment configured in such a way as to reduce the cost of building energy. The building occupants, or owners, then benefit from energy savings and pay fees to ESCO SPV in return. At any time, savings are guaranteed to exceed costs. ESCO begins by conducting property analysis, designing energy-efficient solutions, installing required elements, and maintaining systems to ensure energy savings during the payback period. Energy cost savings are often used to pay back capital investment projects over a period of five to twenty years, or are reinvested into buildings to allow for possible capital increases that are not feasible. If the project does not provide a return on investment, ESCO is often responsible for paying the difference.
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Histori
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The start of the energy services business could be attributed to the energy crisis in the late 1970s, when entrepreneurs developed ways to combat rising energy costs. One of the earliest examples was a company in Texas, Time Energy, which introduced the device to automate the switching of lights and other equipment to regulate energy use. The main reason that the product was not initially sold was because the prospective user doubted that the savings would actually materialize. To overcome this doubt, the company decided to install the device in advance and ask for a percentage of the accumulated savings. The result is the basis for the ESCO model. Through this process, the company achieves higher sales and more profits because of its huge savings.
Industrial growth during the 1970s and 1980s
As more and more entrepreneurs see this market grow, more and more companies are starting to create. The first wave of ESCO is often a small division of large energy companies or small, newly established, and independent companies. However, once the energy crisis is over, companies have little influence on potential clients to undertake energy-efficient projects, given the lower energy costs. This prevented the growth experienced in the late 1970s from continuing. The industry grew slowly through the 1970s and 1980s, driven by specialist companies like Hospital Efficiency Corporation (HEC Inc.), established in 1982 to focus on the energy-intensive medical sector. HEC Inc., later renamed Select Energy Services, was acquired in 1990 by Northeast Utilities, and sold in 2006 to Ameresco.
1990: Consolidated energy utilities and companies become major players
With increasing energy costs and availability of efficiency technologies in lighting, HVAC (heating, ventilation and air conditioning), and building energy management, ESCO projects are becoming much more common. The term ESCO also became better known among potential clients who want to improve their outdated building systems and need to be replaced, or to upgrade energy plants on campuses and districts.
With deregulation in the US energy market in the 1990s, the energy services business has been rapidly increasing. Utilities, which for decades enjoy monopoly protection with the assurance of return on investment of power plants, must now compete to supply electricity to many of their biggest customers. They are now looking for energy services as a potential new business path to retain their existing large customers. In addition, with new supply-side opportunities, many energy services companies (ESCOs) are beginning to expand into the generation market, building district power plants or including cogeneration facilities in efficiency projects. For example, in November 1996 BGA, Inc., formerly a private company, regional energy performance contractor and consulting firm acquired by TECO Energy, and in 2004 was acquired by Chevron Corporation. In 1998, BGA entered the District Energy Factory business, completing construction at the first district cooling plant owned and operated by a third party in Florida.
Decade 2000: Consolidation, out of many utilities
Immediately after the demise of Enron in 2001, and the sputtering or reversal of deregulation, many companies shut down or sell their energy services business. There is significant consolidation among the remaining independent companies. According to the NAESCO industry group, ESCO revenue in the US grew 22% in 2006, reaching $ 3.6 billion.
Maps Energy service company
ESCO operating principle
Introduction
The energy services company (ESCO) is a company that provides comprehensive energy solutions to its customers, including auditing, redesigning and applying changes to the way consumers consume energy, the ultimate goal is to improve efficiency. Other services that may be provided include energy infrastructure outsourcing, energy supply, financing and risk management. This is the service that distinguishes ESCO from general energy companies, whose core business is simply energizing its customers. Usually the compensation to ESCO is based on performance so that the benefits of increasing energy efficiency are shared between client and ESCO.
ESCOs often use performance contracts, which means that if the project does not provide an investment return, ESCO is responsible for paying the difference, thus convincing their clients about energy savings and costs. Therefore, ESCO is fundamentally different from engineer consultants and equipment contractors: the first is usually paid for their advice, while the second is paid for equipment, and does not accept any project risk. The risk-free nature of the services provided by ESCO offers a convincing incentive for their clients to invest.
Some typical characteristics of ESCO are as follows:
- Ownership - ESCO may be privately owned, independent or part of a large, state-owned, non-profit, joint venture, producer or producer company.
- Clients - ESCO typically specializes in niche markets by sector (industry, utilities, real estate, etc.) and by size (large or small projects).
- Technology - Some ESCOs have technological specializations (eg lighting, HVAC, certain industrial processes) while others aim for a holistic approach.
- Project financing - Funding capabilities vary with the ESCO financial situation. Some have large parent companies, allowing them to finance their own projects. However, all ESCOs rely on third party funding.
Developing a project
Energy conservation projects often begin with the development of ideas that will result in energy savings, and in turn, cost savings. This task is usually the responsibility of ESCO. ESCOs often approach potential clients with project proposals for energy savings and performance contracts. The ESCO is said to "push" the project. Once the owner is aware of a possible energy savings project, he or she may choose to bid, or keep using the original ESCO. During the initial period of research and investigation, energy auditors from ESCO observed the location and reviewed the project system to determine areas where cost savings were feasible, usually free to clients. This is an energy audit, and this phase is often referred to as a feasibility study. A hypothesis of potential projects developed by clients and auditors, and then the ESCO engineering development team extends and develops solutions.
This next phase is called the engineering and design phase, which further defines the project and can provide stronger cost and cost estimates. The engineers are responsible for making cost-effective measures to gain the highest energy saving potential. These measures can range from highly efficient lighting and heating/upgrading of air conditioning, to more productive motors with variable speed drivers and centralized energy management systems. There are a variety of sizes that can result in substantial energy savings.
Once the project has been developed and a performance contract is signed, the construction or implementation phase begins. Upon completion of this phase, the monitoring and maintenance or Measurement and Verification (M & amp; V) phase commences. This phase is the verification of pre-construction calculations and is used to determine actual cost savings. This phase is not always included in the performance contract. In fact, there are three options that the owner should consider during a performance contract review. This option, from the cheapest to the most expensive:
- There are no guarantees other than those given to the equipment.
- ESCO provides M & amp; V to denote the projected energy savings during the short term after completion.
- ESCO provides M & amp; V to denote the projected energy savings during the entire payback period.
Typical transactions involve ESCO loan cash to buy equipment or to apply energy savings to its clients. Clients pay ESCO their regular energy costs (or most of it), but energy savings allow ESCO to pay only a fraction of it to their energy suppliers. The difference is paying interest on the loan and the profit. Typically, ESCs are able to implement and finance better efficiency improvements than their client companies by themselves.
Choose ESCO
Once the project has been established, but before many engineering jobs are completed, it may be necessary to select ESCO by placing the project "out for bargaining". This usually happens when a client has developed his own project or is required to allow others to bid on jobs demanded by the government. The latter is the case on any funded state or federal project. Common processes include Requests for Qualification (RFQ) in which interested ESCs submit company resumes, business profiles, experience, and original plans. Once accepted, the client creates a "short list" of 3-5 companies. This listing is a company whose profile is for the project that best fits the owner's idea in the RFQ. The Client then requests a Request for Proposal (RFP) which is a much more detailed description of the project. This document contains all sizes of cost savings, products, M & V plans, and performance contracts. Clients often allow at least six weeks to gather information before submitting. Once submitted, the Proposal is then reviewed by the client, who can conduct interviews with applicants. The client then selects ESCO which presents the best solution for the energy project, as determined by the client. A good ESCO will help the owner collect all the parts from start to finish. According to the Energy Services Coalition,
"Qualified ESCO can help you combine snippets:
- Identification and evaluation of energy-saving opportunities;
- Develop engineering design and specifications;
- Manage projects from design to installation to monitoring;
- Arrange financing;
- Train your staff and provide ongoing maintenance services; and
- Ensure that savings will cover all project costs. "
Energy-saving tracking methods
After installing energy conservation measures (ECMs), ESCO often determines the energy savings generated from the project and presents savings results to their customers. A common way to calculate energy savings is to measure the energy flows associated with ECM, and then apply spreadsheet calculations to determine savings. For example, a chiller retrofit would require measurement of cold water supply and return temperatures and kW. The benefit of this approach is that the ECM is isolated, and only the energy flow associated with the ECM itself is considered.
This method is described as Option A or Option B in the International Performance Measurement and Verification Protocol (IPMVP). Table 1 presents different options. Option A requires multiple measurements and allows for estimation of some parameters. Option B requires the measurement of all parameters. In both options, the calculation is done (usually in a spreadsheet) to determine what energy savings. Option C uses utility bills to determine energy savings.
There are many situations where Option A or Option B (Measurement and Calculation) is the best approach to measuring energy savings; however, some ESCO insist on using Option A or Option B only when clear Option C will be most appropriate. If ESCO is a lighting contractor, then Option A should work in all cases. Measurement of spot spots before and after, agreed hours of operation, and simple calculations can be incorporated into spreadsheets that can calculate savings. The same spreadsheet can be used repeatedly. However, for ESCOs that offer different retrofits, you should be able to use all the options so that the best option can be selected for each job. Control Retrofits, or retrofits for HVAC systems are usually excellent candidates for Option C.
After installing energy conservation measures (ECMs), savings made from the project must be determined. This process, called Measurement and Verification (M & amp; V), is often done by ESCO, but may also be performed by customers or third parties. The International Performance Measurement and Verification Protocol (IPMVP) is a standard M & amp; V to determine the actual savings made by the energy management program. Because the savings are the absence of energy use, they can not be measured directly. IPMVP provides 4 methods for using measurements to determine with certainty the actual savings. Plans to apply the most appropriate general methods for 4 specific projects are usually created and approved by all parties prior to the ECM implementation.
IPMVP A Options - Retrofit Insulation: Measurement of the Main Parameters The savings are determined by field measurements of key performance parameters that define the energy usage of the affected system ECM (s). Unselected parameters for field measurements are estimated.
IPMVP B Option - Retrofit Insulation: All Measurement of Savings Parameters is determined by field measurement of energy use from ECM-affected systems.
IPMVP C Option - Full Facilities Savings are determined by measuring energy use at all facilities or sub-facility levels.
IPMVP Option D - Calibrated Simulation Savings are determined through simulated facility energy usage, or from sub-facilities. The simulation model should be calibrated so as to predict energy patterns that roughly match the actual meter data.
Table 1 provides the recommended IPMVP options for different project characteristics. For each project, the M & amp; V which balances the uncertainty in the savings achieved and the cost of the M & V must be selected. Some plans include only short-term verification approaches and others include repeated measurements for long periods of time. Since the cost of determining the amount of savings achieved erodes the benefits of the savings itself, IPMVP advises against spending more than 10% of the expected savings on M & V. Often the M & amp; V is bundled with monitoring, support or other maintenance services that help achieve or ensure the performance of savings. These costs should not be considered M & amp; V and depending on the details of projects and services, can greatly exceed 10% of savings.
Utilize savings
Once the project is completed soon the results of energy savings (often between 15 and 35 percent), and long-term maintenance costs can be put toward capital investment to improve the energy system. This is often how ESCO and contract performance work. Initial implementation is, in a sense, free, with payments derived from the percentage of energy savings collected by the finance company or ESCO. The client may also want to use some capital investment money to lower the percentage during the payback period. The payback period can range from five to twenty years, depending on the contract negotiated. Most government-funded or federal projects have a maximum return of 15 years. Once equipment and projects have been paid, the client may be entitled to the full amount of savings to use as they see fit. It is also common to see large capital increases financed through energy saving projects. Upgrades to mechanical/electrical systems, new building wrapping components, or even restorations and retrofits may be included in the contract even if it does not affect the amount of energy savings. By utilizing energy savings, clients may be able to place the funds used to pay for energy to capital increase that would otherwise be unfair with the funds currently allocated.
US Federal Programs: "Super-ESPC"
Since its founding in the 1990s, a US government program known as "Super-ESPC" (ESPC stands for Energy Savings Performance Contracts) has been responsible for $ 2.9b in ESCO contracts. The program was modified and re-authorized in December 2008, and sixteen companies were awarded an unlimited contract/unlimited quantity (IDIQ) contract of up to $ 5B each, for a total potential energy savings project worth $ 80B.
The grouping of sixteen companies provides an easy illustration of the industrial structure and the ways in which each company generates value through projects using the ESCO model of the energy-saving performance contract. Firms that are affiliated with equipment use performance contracts as sales channels for their products. Utility-related companies offer ESCO projects as value-added services to attract and retain large customers and generally focus solely on their utility footprint. Non-utility energy services companies are neutral products, tend to have larger geographic footprints, and usually offer a range of services from energy retrofits to renewable energy development.
Perlatan terafiliasi
- Noresco (Operator)
- Solusi Gedung Honeywell SES
- Johnson Controls Government Systems, L.L.C. (York)
- Schneider Electric
- Layanan Pemerintah Siemens, Inc.
- Trane
Berafiliasi dengan utilitas
- ConEdison
- Konstelasi
- Layanan Energi FPL
- Pepco Energy Services
- Grup Sistem Energi
Non-utility energy services
- Ameresco (Ennovate, Exelon Services Federal Group, E3, APS... Acquired)
- The Benham Company, LLC (SAIC Acquired)
- Clark Energy Group LLC (formerly named Clark Realty Builders, L.L.C.)
- Lockheed Martin, Inc. Services
- McKinstry
- Brewer Garrett
ESCO 2.0
In June 2005, GAO released the report, "Energy Savings: The Benefits of the Offer Performance Contract, But Precautions Are Necessary To Protect the Government's Interests." The Office of the Minister of Defense for Technology, Acquisition and Logistics agreed with GAO's findings. "Although these complex contracts are structured to ensure that savings will exceed costs," DOD said, "we recognize that our measurement and verification procedures should be upgraded to confirm the forecast with actual data." Unverified savings, often set rather than proven, do not add more oil to the soil, take CO 2 from the air or reduce operating budget
The ESPC GAO study questions whether there is sufficient data to prove that the improvements produced by ESCO are sustainable over time. Further studies questioned the practice of having ESCO monitoring and validating the performance of their own projects.
In fact, most buildings and facilities show the same basic limitations with respect to optimal energy conservation and maintenance. US Federal studies show that large and small building systems routinely fail to meet performance expectations, and these errors often escape over time. The building function, the number of tenants, and the configuration of space change over time in unexpected behavior that affects systems that control building performance.
Surprisingly, almost all buildings, building complexes, and systems inside buildings still operate in a disconnected and stand-alone manner. Proprietary systems produce buildings that are a waste of energy. A recent study found that about 30% of LEED-certified buildings performed much better than anticipated, while 25% performed much worse than anticipated. In general, LEED-certified buildings perform 25-30% better than non-LEED certified buildings related to energy use. Ultimately it is difficult or impossible for customers to build an integrated image that links energy use and maintenance costs to control system performance, space use, conservation measures, and the behavior of those using the facility space.
A newer phenomenon is the concept of merging performance benefits contracts with green building benefits, which are well described as green performance contracts . The reason the concept makes sense is because for green buildings, the most expensive prerequisite to fulfill is usually the requirements of energy efficiency. The LEED scoring system requires buildings to be compared with the EPA EnergyStar system. The minimum value to meet the LEED prerequisite is a score of 75 or greater (which means that the building is above 75 percent of the building having benchmarks). Because performance contracts seek to find all sources of energy waste, buildings that have undergone a performance contract process must meet LEED prerequisites.
Green performance contracts can be used to achieve sustainability goals in the design and construction of new buildings as well as in existing buildings. New Building: High efficiency options compared to model performance of less efficient designed buildings. Implementing performance contracts on buildings that are being designed and built is the perfect remedy for pressure to "value engineers" the efficiency and sustainability of new buildings as designed. In new buildings, the performance contract bridges the gap between a first-cost and cost-of-life-cost perspective by using long-term energy savings to pay for the additional cost of the first high-efficiency measures.
Existing Buildings: Green performance contracts provide mechanisms for implementing and financing building efficiency and enhanced sustainability, including improved operations. Achieving sustainable building performance in existing buildings can be done at a reasonable cost. If required, system or building improvements may be disseminated over time and implemented when capital capital is available.
Green performance contracts provide comprehensive integrated solutions for a wide range of building, site and infrastructure improvements, and enable building owners to pay for increased sustainability of this development, including increased capital or renewable energy, with funds in the organization's cost budget.
The result is better performing buildings along with all community relationships and green building marketing benefits.
Retro-commissioning
Studies show that almost every building suffers from a complete unplugged control system, excessive cooling and heating capacity, and inability to get the data needed for senior decision makers to understand how a building is performing. The National Institute of Standards and Technology (NIST) found that the average building consumes only two-thirds of its estimated lifespan before it needs to be replaced or substantially installed. Often the explanations for this group of issues are incomplete or the construction of the building is not appropriate at the beginning of the life cycle of the building. (Building commissioning is a start-up process whereby each new building system is initially configured and calibrated to its occupancy load to build and run it.)
According to NIST, the time needed to establish the right of commissioning is rarely available, disabilities and opportunities are ignored, and the system's potential is not realized. Longer equipment performance and control sequences are naturally degraded, and sub-standard performance or even system and component failures are not recognized. The end result is an almost universal waste of various types, including enormous energy and maintenance costs.
Independent Measurement and Verification
Little, if any, of these factors can be addressed by the Energy Services Company or through ESPC because the information needed to determine the real problem is not captured. There is a clear need for integrated solutions that offer this type of accountability and transparency - and many "actual data" - which are currently lacking in the ESPC process. What is actually needed is an independent tool for continuous performance monitoring so that buildings achieve peak performance faster and maintain peak performance over time (as represented by the yellow field in the image) despite changes in usage, maintenance, energy costs, and user behavior.
ESCO 2.0 main component
- Real-time integration and visibility of building management systems, measurement subsystems, and asset management applications.
- Automatic analysis, real time, and reporting of key performance indicators related to subsystem operations, energy usage, and equipment maintenance management.
- Recommendations for results-oriented energy use and improved maintenance programs that will enable energy reduction targets to be met or exceeded.
- Continuous monitoring of subsystems to continue expanding energy conservation efforts and improved maintenance management for further cost reductions.
- Independent verification of ESCO and other Energy Conservation (ECM) programs.
US Federal Reporting to OMB Scorecard
English and European ESCO
A number of companies have started offering ESCO services in Europe. As in the US, some belong to utilities, some belong to manufacturers and others are independent.
See also
- Efficient energy use
- Industrial Assessment Center
- RESCO - renewable energy service company
References
External links
- ESCO Europe conference, 20-21, Milan, Italy
- New York Times, September 1, 2008 Ambit and other ESCO for consumers
Source of the article : Wikipedia
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