Energy Service Company
EcoGeneration Solutions, LLC. is an "energy
service company." We provide turnkey energy management
design and project development solutions that provide our customers with
energy savings through increased efficiencies and decreased power and
energy costs. We also offer other energy-saving technologies that
include; absorption chillers, cogeneration,
Side Management or other Energy
Unlike most companies, we are equipment
supplier/vendor neutral. This means we help our clients select the
best equipment for their specific application. This approach provides our
customers with superior performance, decreased operating expenses and
increased return on investment.
Our company provides turn-key project solutions that include all or part
of the following:
- Engineering and Economic Feasibility
- Project Design, Engineering &
- Project Construction
- Project Funding & Financing Options
- Shared/Guaranteed Savings program with no
- Project Commissioning
- Operations & Maintenance
For more information: call us at: 832-758-0027
What is an Energy Service Company?
EcoGeneration Solutions, LLC., is an Energy
Service Company. An Energy Service Company (ESCO) is a business that provides energy
management services to an energy user. Services provided by an ESCO may be
contracted through an Energy Services Agreement or through specific energy
management solutions identified by the ESCO that provides the best return
on investment for the customer.
* What is Energy Performance
Here’s how it works:
enter into an agreement with a private energy service company (ESCO). The
ESCO will identify and evaluate energy-saving opportunities and then
recommend a package of improvements to be paid for through savings. The
ESCO will guarantee that savings meet or exceed annual payments to cover
all project costs—usually over a contract term of seven to 10 years. If
savings don’t materialize, the ESCO pays the difference, not you. To
ensure savings, the ESCO offers staff training and long-term maintenance
Many types of
building improvements can be funded through your existing budgets— new
lighting technologies, boilers and chillers, energy management controls
and swimming pool covers, to name a few.
What is an Energy
An Energy Performance Contract is a financing or operating lease provided
by an Energy Service Company (ESCO) or equipment manufacturer. What
distinguishes these contracts is that they provide a guarantee on energy
savings from the installed retrofit measures, and they usually also offer
a range of associated design, installation, and maintenance services. The
contract period can range from 5 to 10 years, and the customer is required
to have a certain minimum level of capital investment (generally $200,000
or more) before a contract will be considered.
Under an energy performance
contract, the ESCO provides a service package
that typically includes the design and engineering, financing,
installation, and maintenance of retrofit measures to improve energy
efficiency. The scope of the improvements can range from work that affects
a single part of a building's energy-using infrastructure (such as
lighting) to a complete package of improvements for multiple buildings and
facilities. Generally, the service provider will guarantee savings as a
result of improvements in both energy and maintenance efficiencies.
Flat-fee payments tend to be structured to maintain a positive cash flow
to the customer with whom the agreement is made. With the increasing
deregulation of conventional energy utilities, several larger utilities
have formed unregulated subsidiaries that offer a full range of energy
efficiency services under performance agreements.
An energy performance contract must define the methodology for
establishing the baseline costs and cost savings and for the distribution
of the savings to the parties. The contract must also specify how the
savings will be determined and address contingencies such as utility rate
changes and variations in the use and occupancy of a building. While
several excellent guides exist for selecting and negotiating energy
performance contracts, large or complicated contracts should be negotiated
with the assistance of experienced legal counsel.
A qualified ESCO can help you put
the pieces together:
and evaluate energy-saving opportunities;
engineering designs and specifications;
the project from design to installation to monitoring;
your staff and provide ongoing maintenance services; and
that savings will cover all project costs.
The Many Benefits of
Energy Performance Contracting:
By updating or replacing equipment that is old and obsolete with
newer, more efficient technologies, you will have higher-quality systems,
fewer breakdowns and reduced maintenance. When building occupants
experience improved lighting, better air quality and more comfortable room
temperatures, they are likely to be happier and more productive.
Energy performance contracting allows you to divert funds that
would be spent on energy bills into investments in your buildings. For
governments, this means limited budgets can stretch further, putting
taxpayers' money where it really counts. For all building owners, more
modern, efficient energy systems can increase your property value and
improve marketability of your buildings.
Energy performance contracting allows you to tackle energy efficiency
projects now even if no funds are available. This means you can still
afford improvements when faced with budget cuts or competing priorities.
And, with energy performance contracting, you can take a comprehensive
approach that will optimize your benefits.
New systems and equipment can lower your energy costs. Many building
owners see energy savings of 15 to 35 percent and also reduce their
long-term maintenance costs. You keep all the savings once the equipment
is paid off, plus any excess savings during the contract term.
Technology and Expertise
Since the late 1970s, performance contracting has become a widely accepted
and reliable way to make energy improvements. Today's ESCOs use
industry-standard practices and proven energy-saving technologies and have
excellent track records for satisfying their customers. ESCOs have a
financial incentive to make sure savings are achieved throughout the
Performance contracting offers a streamlined approach to making facility
improvements because, with a single contract, you can tackle multiple
energy-efficient projects throughout your facility, rather then doing one
project at a time. Your ESCO can provide a full range of services and
continue working with you once the projects are complete to ensure that
you get optimal long-term energy performance.
Energy Service Companies: Cost-Savings Partners
As electric utilities transform themselves to meet the changing
marketplace, energy users must learn a new lexicon of acronyms and
abbreviations. Enterprises such as ESPs, LDCs, ISOs, PXs, UDCs, RESCOs,
DISCOs, Transcos, and ESCOs operate alongside traditional electric
utilities. Of these, the ESCO, or energy service company, may be the least
understood, since it offers services historically outside the domain of
regulated electric utilities. ESCOs also provide the broadest range of
services to energy users.
|Energy Services Offered by Various Types of
||A&E Design/Build Firms
|Construction and Project Management
|Performance Monitoring and Verification
|Commissioning and O&M
|Source: Goldman and Dayton.
The ESCO is the only type of energy services provider whose compensation
depends upon energy savings. This is the "shared savings," or
"performance-based" contract where the ESCO retains a portion of
the value of the saved energy as compensation.
ESCOs that concentrate their efforts within the industrial sector tend
to differentiate themselves by focusing within specialized industries,
such as textiles or petroleum refining.
ESCO projects often employ a variety of measures and technologies to
achieve energy savings, including:
- High-efficiency lighting
- High-efficiency heating and air conditioning
- Efficient motors and variable speed drives
- Centralized energy management systems
ESCOs generally act as project developers and assume much of a
project's risk. Typically, they offer these services:
- Develop, design, and finance energy efficiency projects
- Install and maintain energy-efficient equipment
- Measure, monitor, and verify the project's energy savings
- Assume the risk of guaranteed energy savings1
For manufacturing facilities with significant motor-related end uses,
there are potentially large energy saving opportunities through motor
system and pump system upgrades. However, resources such as time,
expertise, and capital are often not available to facility management for
energy efficiency projects. In addition, management may be more concerned
with increasing productivity and reliability than reducing energy costs.
Energy consumers tend to look for comprehensive solutions to their
operating situation instead of just energy savings. While the effort may
concentrate on energy efficiency improvements, there are usually
collateral improvements in reliability, process control, environmental
compliance, and increased productivity associated with it.
One of the greatest benefits of the performance-based contract is that the
ESCO supplies the project funding, which relieves the company of paying
up-front capital costs. This makes the ESCO a valuable partner for
facility management and ownership. In return for providing the up-front
capital, the ESCO receives some portion of the measured savings that
result from the project over a number of years.
Who is at Risk?
Clearly, there is risk associated with performance-based contracting, and
there are many ways the ESCO and customer can share that risk. Typically,
the ESCO shoulders much of the risk, since the ESCO estimates energy
savings a priori and determines whether the savings will repay
their investment. However, if the customer does not operate the project as
planned, then energy savings will be less than forecasted and payback will
be delayed. The same is true if the ESCO overestimates savings, even if
the customer operates the project as planned. Thus, ESCOs have led the
effort to measure and verify, rather than simply estimate energy savings.
When the customer is responsible for operating the equipment, the ESCO
must train operating personnel in the principles of energy efficiency and
proper operation. Training is also valuable to the customer, who could
assume some risk if energy savings do not meet forecasts.
Frequently Asked Questions
do I find those energy savings?
By working in partnership with a professional energy service company (ESCO),
you can tap its expertise to determine what building improvements make the
most sense for improved comfort, easier maintenance and your budget. An
ESCO's recommendations might include replacing lighting equipment,
modifying or replacing boilers and chillers, installing modern energy
management control systems, replacing motors or even installing pool
covers or more efficient kitchen equipment.
I do this myself?
Sure, if you have the time, money and expertise. But an ESCO can
work with you to put together a complete package of services that meets
your needs and saves you time and money. An ESCO can identify and evaluate
energy-saving opportunities, provide engineering services, order and
install equipment, and manage all phases of construction. To complete the
package, the ESCO can guarantee the savings and even arrange financing.
risky is this for me?
ESCOs typically work under a performance guarantee that shifts the risk to
the ESCO. Your guaranteed energy savings pay for the upgrades, so you have
no up-front costs. If energy savings don't materialize, the ESCO pays the
difference, not you.
more information on Energy Service Company services, call
the experts at: 832-758-0027
* From the Department of Energy
website with permission