What is ESCO?

ESCOs (Energy Service Companies) are specialized companies for energy issues with proper know-how and experience. Their role is based on securing a specific amount of energy savings and their remuneration is linked to the success rate of guaranteeing energy savings

The very first ESCOs constituted in 1970 in USA and Canada during the period of energy crisis.

Greek Legislation

The Law 3855/2010"Measures to improve energy efficiency in end judgment, energy services and other provisions" set key policies, regulations and measures for the market development for energy services in Greece, and set the foundations for a major development of Energy Service Companies

European Context

The European Union Directive 2006/32/EC promotes the creation of ESCOs in the Member Countries. Some paragraphs of this European Directive refer exclusively on this issue and even clarify terms used frequently in this work.

Some of the paragraphs of this European Directive only concern on this issue and even specify terms frequently used in the present study:
The third party financing is an innovative practice and should be encouraged. In such arrangements, the beneficiary avoids investment costs using the economic value of the energy savings stemming from the investment of a third party and pay off the investment costs and interest on loans.

"ESCO» (Energy Service COmpany): a natural or legal person that delivers energy services and / or other energy efficiency improvement measures at user site and accepts a degree of financial risk in the process. Payment for services is based (wholly or partially) successful in saving energy and meeting the agreed performance promises.

"Energy performance contract": an agreement between the beneficiary and the provider (normally one ESCO) for measures to improve energy efficiency. Investment measures are paid for by the percentage of the agreed attainable energy savings.

"Third party financing": an arrangement that includes a third party in addition to the energy provider and the recipient of measures to improve energy efficiency, which provides the capital for the measures and charge the beneficiary an amount equal to the benefits of energy savings achieved as a result of improvement measures. The third party may be an ESCO, but this is not essential.

Furthermore it is stated that:

Member Countries must ensure that the following information should be available in final energy consumer with clear and understandable manner by distributors or managers of power distribution system, and to reach this with your account or contracted contracts and evidence. Specific information to be provided to consumers will concern:

• Current actual prices and consumption
• Present energy comparisons with last year's in the form of graphs
• If possible comparisons with a standard consumer landmark in the same category

To provide the above services is necessary mediation of ESCOs, but mainly the development and implementation of appropriate algorithms and applications for data processing and measurement of energy consumption.

ESCOs services

Our serviced include:

• Development, design, and ensure for the "FINANCING" of energy efficiency projects.

• Installation and maintenance of equipment needed for energy efficiency projects.

• Measurement, monitoring and verification of energy savings.

• Commitment effectiveness of intervention.

These services included in the cost of the project and paid through the savings achieved.

Business Model