Initial costs are a major barrier to implementing energy efficiency projects in many areas of activity. An important objective of energy efficiency policies and programs is to help minimize the initial cost of these projects so that owners are encouraged to implement energy efficiency programs that will lead to significant improvements.
The energy service performance contract (ESPC) can be provided by an energy service company (ESCO). Such a funding aims to increase energy performance through a revamping of systems and equipment. It is aimed at the privately-owned commercial buildings, to production and logistics companies and to other energy-intensive areas.
Under an ESPC agreement, an external ESCO organization implements a project to improve energy efficiency and uses the revenue stream from cost savings to reimburse the project costs, including investment costs. This model guarantees savings for a certain amount of time in exchange for subsequent payment of energy cost savings.
ESCO will evaluate the opportunity for energy efficiency, acquire the necessary equipment to improve performance and install the equipment to the customer. The equipment investment is made by ESCO companies and is gradually recovered during the project.
Some of the revamping solutions that increase the energy efficiency of building installations are the following:
- Replacement of classic pumping groups with variable speed pumps
- Replacement of air conditioning equipment (cooling units, air treatment plant, etc.)
- Introduction of Building Management System (BMS)
- Introduction of intelligent metering systems
The steps of a revamping project to increase energy efficiency are as follows: audit, smart metering, monitoring, feasibility study, financing, integrated solution implementation, energy savings monitoring and reporting.
Energy efficiency programs offer the opportunity to reduce energy losses as well as to optimize consumption, which translates into an increase in the beneficiary’s profitability under the same operating conditions. EnergyPal, a brand of TimePal Romania, an ESCO company, offers flexibility in choosing the solution that suits the project, experience, expertise, and investment needed to achieve the expected energy.