ESCO is the short form of Energy Service Company
ESCO is the organization which takes guarantee of an energy saving solution & undertakes the financial risks involved in the solutions by assuring the performance.
Govt. of India wants to promote ESCO to accelerate the mission of improving energy efficiency of Indian Industries.
ESCO is a company having technical knowhow of certain applications of energy saving. It need not be manufacturer of the solutions / products. It may source the solution from a manufacturer & installs the solutions with a service back up for the contractual period.
There are two ways with which the ESCO model works...
In performance sharing model, the ESCO invests the money (either own or raised from financial institution). Supplies the equipment to the end customer. During the contractual period, proves & shares the saving with the end customer in mutually decided percentage (e.g. 70:30, 60: 40 etc). After the contractual period the ownership of the equipment gets transferred to the end customer. This model is suitable for the customers who are not cash rich.
In performance guarantee model, the energy user invests in the equipment based on the ESCO’s guarantee of energy saving per month. Once installed, the energy saving per month is found per month. If the saving is less than the amount guaranteed by ESCO, then ESCO pays the difference amount to the energy user. In contrary to this, if the saving amount is more than the guaranteed amount, then the energy user pays the difference amount to ESCO. This process continues for the contractual period. This model suits to the energy user having own funds or to the ones who have very low finance cost.
GreenMagic is an authorized channel partner for BOSCH for ESCO solutions in
- Steam & hot water generation
- Heat Pump Solutions for pretreatment
- Heat recovery from re rolling
GreenMagic also offers Philips LED lighting ESCO & Teknocrat’s make LES on ESCO basis.