What is an ESCO?


ESCO is the strongest arm that a company can count, if interested in reducing costs in energy and water: the goal is the establishment of a partnership, sharing the results.

What is an ESCO?

ESCO (Energy Services Company) are engineering companies, specialized in Energy Conservation Services, or rather, to promote energy efficiency and water consumption on the premises of its customers.

Steps of the services offered by an ESCO

• Energy Evaluation

A comprehensive analysis is performed using a pre-diagnosis – PD.

A detailed analysis is performed on an Energy Diagnosis – ED.

The pre-diagnostic features how a customer unit uses energy in a given period (usually 12 months), where and if it is possible to reduce the consumption and cost of energy. The financial figures of investment and savings from the project are presented.

Due to a non-realization measurements of electrical quantities or accurate quotations, the numbers have margin of error of 20 to 30%.

With the work conclusion we have a comprehensive overview of the customer unit energy situation and what actions can be performed. The next step is taken along, ESCO and customer will define which systems are the most interesting and attractive studying in detail with a view to implement the energy efficiency project (EE).

Settings made, the process advances to the energy diagnosis stage where systems and actions will be detailed. The ED is not an executive project, it hasa basic design but will detail, how, where, how, who and when the deployment will be performed from a technical point of view.

From a financial point of view, the ED will accurately present the necessary investment to the EE project implementation, with details and opportunities for each system and the savings of the project. In this way there will have a clear view of the cost-benefit for each specific opportunity and also for the project as a whole.

What we find in an energy assessment:

Identify opportunities to: reduce energy costs (electric, gas, fuel, renewable energy and water) in its various forms of use and evaluate the supply reliability and the possibility to partial ou fully replace the energy input in consumption.

And also:

valuation of attractive and economic opportunities, including suggestions for process changes and / or equipment that are viable; financing advice; implementation of the identified opportunities; begin implementations, including the Measurement Plan & Verification (M & V) to confirm the savings.

Opportunities evaluated by ESCO

1. Types of inputs:

electricity (including generation and cogeneration, demand and consumption parameters, power factor, harmonics, electric charge modulation, etc ..), natural and liquefied petroleum gas, fuels, solar energy, water, renewable energy and other energy sources.

2. Types of charges / systems:

indoor and outdoor lighting, air conditioning, ventilation, cooling and heating, pumping, transporting materials, machine tools, surface treatment of metals, presses, boilers and furnaces, production and distribution of compressed air, storage and distribution of industrial gases, and others;

3. Types of buildings uses:

industrial, commercial, service, residential and other

4. Types of financial benefits:

Lower-cost credit lines, adequate tariffs, carbon credit and other

Differential and training of an ESCO

The main difference between an ESCO and a consulting firm or a traditional engineering company is that it knows and has expertise in reducing energy costs. In addition, it can share the risk with the customer in the investments contribution and is committed to the client on project results and can compromise their compensation with the successful results obtained in reducing energy consumption costs.

Specialized in conducting EE projects, one ESCO is able to:

– Identify opportunities,
– Study alternatives,
– Evaluate technical, environmental and financial solutions,
– Develop projects,
– Manage and deploy works
– Install and perform measurements,
– Propose economic and tariff guidelines.

Main advantage of hiring an ESCO for EE Project

Expertise to implement cost reduction opportunities without the use of the Company equities = Positive Cash Flow ALWAYS!


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