ECCJ / AOTS Malaysia training course

Malaysia

ESCO Project

CONTENTS
2 What is an ESCO Project ?
3 The ESCO Approach
4 Cost & Profit of ESCO Project
5-6 Contract Schemes & Financial Flow
7 Breakdown of Combined Order Value
by Type of Contract
8 Breakdown of Combined Order Value
by Type of Service
9-12 ESCO Project Example - City Hotel

What is an ESCO Project ?

ESCO:Energy Service Company
An ESCO project is an energy conservation project undertaken as "a business activity of a private enterprise (ESCO)".
Definitions of ESCO Project
All service related to energy
Energy center business (Energy supply business)
Third party finance
Heat source facility operation (Contract energy management): UK
Performance contracting: USA, Canada, Japan, EU

The ESCO Approach

Cost and Profit of ESCO Project

Contract Schemes and Financial Flow (1/2)

Contract Schemes and Financial Flow (2/2)

Breakdown of Combined Order Value by Type of Service

Breakdown of Combined Order Value by Type of Contract (ESCO Projects)

ESCO Project Example (city hotel)

ESCO Project Example (city hotel) cont'd

5. Finance Self-financing
6. Utilization of assistance measures
High-Efficiency Housing/Building Energy System Introduction Promotion Program
7. Type of contract and contract duration
Guaranteed-savings, three years
8. Owner benefits - sales points
Although the hotel is open for business twenty-four hours a day all year round, the air-conditioning load fluctuates from season to season and hour to hour. In this regard, the project will make it possible to optimize the operation of the air-conditioning system by automatically changing its output according to load conditions, thus eliminating energy wastage, and this is its greatest benefit.
9. Client's comments
The introduction of the energy conservation system has been delivering the expected energy savings. In fact, BEMS-based energy data analysis has brought about an even higher energy efficiency by inducing more energy-conscious building operation.
10. Problems encountered at time of introduction and solution measures
As the project was implemented while maintaining normal business activities, close consultations were held in advance regarding the equipment delivery schedule, working hours, etc.

ESCO Project Example (city hotel) cont'd

11.Energy conservation equipment used

ESCO Project Example (city hotel) cont'd

12. Energy savings achieved
Energy consumption before ESCO project 388,669 GJ/year
Energy consumption after ESCO project 307,921 GJ/year
Reduction in energy consumption 80,748 GJ/year (20.8% reduction)

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