We can help you select the right type of contract for your project.
Based on your specific requirements, we can help you select the best ESCo contract type for your project from DFBOM to Joint Ventures, there is an option available to suit your ambitions.
Here the ESCo designs, finances, builds, and operates the infrastructure for long term contracts of typically 25 – 40 years before transferring ownership back after the specified period. This model is ideal for significant infrastructure projects and allows the client to benefit from expert management without initial capital expenditure.
Under this long-term arrangement, an ESCo assumes full responsibility for energy services at costs comparable to an alternative method of generating heat. This model is particularly attractive for clients looking to outsource the management of their energy needs comprehensively, as it includes all fuel procurement, operation, maintenance and lifecycle replacement within the contract.
This is an agreement in which a project sponsor outsources the delivery and ownership of a heat network to a third party through an ESCo.
It is a strategic option for organisations looking to avoid long-term commitments and risks associated with a development.
This approach is particularly appealing to entities that may not have a lasting interest in maintaining or managing the infrastructure involved. By transferring these responsibilities to an ESCo, the project sponsor can leverage the expertise and experience of a company that specialises in managing such projects effectively.
Energy Performance Contracts (EPCs) involve a commitment by the ESCo to achieve certain energy savings. The savings themselves may offset the project costs. EPCs can be structured in two ways:
Instead of outright purchase, equipment or facilities may be leased with payments structured over the life of the project.
This method can be particularly attractive as it aligns payment schedules with the savings generated, easing budgetary pressures on the client.
Creating a joint venture for an ESCo can be a strategic move, especially for project sponsors who might not possess all the technical expertise to manage an ESCo on their own.
This partnership involves the project sponsor teaming up with a proven heat network operator to establish a jointly owned ESCo.
This model is particularly beneficial as it allows the sponsor to tap into the specialised knowledge of their partner while maintaining a degree of involvement and influence in the operations.
