How does an Energy Efficiency project works

The implementation of an energy efficiency project begins to be carried out with an energy assessment of the unit energy consuming systems where the work will be performed, then the way the financial sources to implement the project, hiring stage, verification of results and project delivery.

There are projects that the ESCO also takes over the operation and maintenance throughout the contractual period of the project.

An energy efficiency project defines actions in certain operation primarily aiming toreduce costs with energy and water consumption , making suggestions of technical and economic feasibility of implementation, including technical specifications, the “project finance”, equipment, materials, services and actual deployments, in addition to the project management and management of the results after the end of interventions.

So any company or enterprise can be benefited from energy efficiency project, through retrofit of operating assets and facilities, and adaptation of procedures.

In short, is a set of well-defined measures which, when implemented, will lead to a previously determined reduction of the water and energy consumption costs of a company or enterprise, maintaining production levels and the quality of final product.

The EE project step by step

As shown above energy assessment may be performed via a pre-diagnosis (PD) or a diagnostic energy (DE).

Usually it first performs a PD presenting comprehensively the opportunities and then hires the DE aiming at detailing the most attractive and important actions for the client.

These services can be hired at once or step by step (first PD and then DE). Another way to be held these jobs is through a Letter of Intent (or Service Authorization), which develops the PD and DE to identify the consumption reduction possibilities, settling economic viability criteria.

The letter of intent is made when the client and ESCO intend to implement the project through a Performance Agreement (CP), so from the beginning that the ESCO will contribute technical and financial resources.

When the customer wants to bid or perform quotations in every stage of the work, the right path is the contracting and payment by the customer of each action.

Upon acceptance of the energy diagnosis, we have the progress of actions for the project implementation stage and the engagement of ESCO to carry out the relevant services for implementation. This can be accomplished in a specific or comprehensive manner within a “turn key” system, ie the ESCO is responsible for all steps and actions for implementation, and only at the end of the project its responsibilities cease. The services of ESCO can only be technical or may be related to financial solutions, ie the ESCO can assist the client in obtaining financial resources to realize the project.

If set for a Performance Agreement –CP, the ESCO is responsible for all project technical and financial actions.

Set all this, begins services defined in the contract and are developed the detailed procedures of the executive project, equipment purchase and installation services, aiming to deployment, start-up and commissioning of the necessary implementations.

The results achieved are assessed through a Measurement & Verification Plan, demonstrating the reduction of energy consumption.

After results, begins the return on investments calculated on the generated savings.

Steps to an Energy Efficiency traditional project (EE)

• Hiring ESCO for energy analysis;
• Energy and Water Prediagnostic and Technical-Economic Viability
• Detailed diagnostics: Energy and Water
• Feasibility Financing
• Contract Negotiation
• Hiring of ESCO as a provider of technical services and / or financing
• Implementation of actions
• Measurement & Verification Results

Steps to an Energy Efficiency project (EE) through Performance Agreement

• Letter of Intent (or Service Authorization)
• Energy and Water Prediagnostic and Technical-Economic Viability
• Commitment Agreement
• Detailed diagnostics: Energy and Water
• Feasibility Financing
• Contract Negotiation
• Implementation of Actions
• Measurement & Verification Results


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