What is contracting?
Energy Contracting is a service that helps to make energy intensive industry more efficient. It facilitates a significant improvement in factory’s energy efficiency, benefiting both the owner and the environment. The concept of energy contracting is a method and financial mechanism to support industry refurbishment. Energy consumption is reduced by new high efficienent cogeneration gen-sets and the resulting savings are shown as the company earnings. Renewable energy solutions can also be added to the contracting concept.
Contracting is an extensive energy service, provided by Contracting Company (CC) which is under ownership of Jager company. The ECC delivers energy, industrial heat for example, to the customers with discount up to 30% depending on the current state. ECC covers all implied investment costs and maintenance of the system. It accepts the operational risks with durations generally above 5 years and normal time spans of 10-15 years. The ECC typically offers customized energy contracting packages that contain planning, operation, and maintenance elements.
Energy Supply Contracting is efficient supply of energy. The contracting partner provides products such as heat, chilling, compressed air or electricity. The subject of the contract is not the energy value, like for example litres of oil, but the utility value – billed in Euros per volume items of heat, steam or compressed air. Financing, engineering design, planning, constructing, operation and maintenance of energy production plants as well as management of energy distribution are all included in the complete service package. The ESC is a service primarily used in the industrial sectors, however residential dwellings may also be included for example in a district heating scheme energy supply contract. The business model encompasses the entire process from the purchasing of fuel to the delivery and invoicing of energy. CHP plants and renewable energy solutions are also included in energy supply contracts.
The benefits of ESC are a significant boost in efficiency, clear and optimized operational costs, more supply assurance and the usage of the most recent safety standards. The customer no longer needs to worry about their energy supply concerns and, in addition there is an increase in environmental performance. The focus of the ESC service model is on the efficiency of the energy supply with the aim to bring the efficiency to its maximum while at the same time providing security of supply.
Contracting is an extensive energy service, provided by Contracting Company (CC) which is under ownership of Jager company. The ECC delivers energy, industrial heat for example, to the customers with discount up to 30% depending on the current state. ECC covers all implied investment costs and maintenance of the system. It accepts the operational risks with durations generally above 5 years and normal time spans of 10-15 years. The ECC typically offers customized energy contracting packages that contain planning, operation, and maintenance elements.
Energy Supply Contracting is efficient supply of energy. The contracting partner provides products such as heat, chilling, compressed air or electricity. The subject of the contract is not the energy value, like for example litres of oil, but the utility value – billed in Euros per volume items of heat, steam or compressed air. Financing, engineering design, planning, constructing, operation and maintenance of energy production plants as well as management of energy distribution are all included in the complete service package. The ESC is a service primarily used in the industrial sectors, however residential dwellings may also be included for example in a district heating scheme energy supply contract. The business model encompasses the entire process from the purchasing of fuel to the delivery and invoicing of energy. CHP plants and renewable energy solutions are also included in energy supply contracts.
The benefits of ESC are a significant boost in efficiency, clear and optimized operational costs, more supply assurance and the usage of the most recent safety standards. The customer no longer needs to worry about their energy supply concerns and, in addition there is an increase in environmental performance. The focus of the ESC service model is on the efficiency of the energy supply with the aim to bring the efficiency to its maximum while at the same time providing security of supply.
Save Energy, Carbon and Money
ESC is a business model for energy savings. The goal is to avoid wasting energy and to invest the savings in energy efficiency. The application span of Energy Performance Contracting involves the entire industry space as one incorporated energy consuming unit. It is a type of long term contractual agreement where the customer benefits from new or upgraded energy equipment and the ESC’s remuneration is directly tied to the savings achieved by the customer discounted energy consumption. The cost of investment is paid by ECC, and it’s income is summit of the energy sold to the customer and/or to the national grid. The energy produced from the ECC’s powerplant (on-site) is sold to the customer with the discount up to 30% depending on the current state.
More than a funding model, an ESC is a programme of practical engineered energy efficiency measures that are implemented in industry to deliver real energy savings. In addition, to ensure the industrial process is used in the most efficient way, customer occupants receive training on energy efficiency practices. The intention is to keep the total energy consumption to a minimum – by way of demand side energy efficiency methods. The final agreement is subject to the ESC contract, regulating the partnership between the ESC and the customer. The contract regulates general issues such as property rights, usage of the systems and partnership duration. Furthermore it stipulates the amount and structure of the investment, its implementation, how it is controlled as well as the maintenance of the energy saving measures which have been taken. It particularly determines the extent and distribution of the energy produced. The key benefits include risk transfer, the ability to modernise a factory energy infrastructure without necessarily having the funds and accessing external expertise. The key focus is on saving energy at the point of use first, before optimizing the supply of that energy. |