Energy As A Service Agreement

Let`s start with the name. The change in the reputation of the entire sustainable energy as a service sector (SEaaS) helps to determine the fundamental values of the sector. Defining what or is not an agreement on sustainable energy services will simplify and standardize offerings, use customers and accelerate the scale and scope of project implementation. In return, a single SEaaS market will attract the additional private investment needed to simultaneously modernize and accommodate our country`s buildings and infrastructure. The current, often piecemeal approach is ineffective for customers and investors and will not be able to expand the market to move the needle on climate change. Determine payments based on measured power. One of the conditions of as-a-service is that debtor payments vary according to the performance of the project and must be defined according to a pro-project issue or use unit. For energy efficiency, this means that customers will be recharged for each unit of measured savings, whether it is a kilowatt-hour of rine saved or a natural gas thermal saved. ESA also offers other companies.

Carbon Lighthouse focuses, for example, on large commercial buildings, usually at least 200,000 square meters, especially offices, hotels and conference centres. Sometimes it also works in buildings with an area of 50,000 square meters. Through a process called „efficiency production,“ Carbon Lighthouse collects original data from dozens of sensors located throughout the building, supplemented by supply information, meteorologists and other information available to identify scattered and hidden inefficiencies that lead to considerable savings – usually 10-30% of building energy expenditure (15-20% savings are the most frequent). Upgrade packages are often based on a building management system, but include lighting improvements, appliance replacement and, if possible, solar installations. One way or another, the energy team will consider the host`s energy needs, operational needs, and long-term and short-term goals when designing the microgrid. A university with a carbon-free commitment, for example, wants to integrate renewable energy into the micro-grid. A producer who uses thermal energy in production can benefit from cogeneration. ESA entails significant ex ante costs for the service provider and credit and performance risks. these fees are passed on to customers during the duration of the contract. For example, payments made under a sealed 20-year contract double on average the initial cost of work, with the difference between pre-investments and lifelong payments primarily covering financing costs (including risk premiums), as well as marketing and management costs.

Under a typical agreement, the ESA supplier develops, finances and operates projects, with the customer paying for these services through a service fee based on the savings achieved. The ESA supplier will often outsource an energy services company capable of implementing complex projects and securing savings. In some cases, the ESA supplier pays the energy bill for a facility and charges the customer for the combination of energy and energy efficiency services (this variant is sometimes called the Managed Energy Services Agreement or MESA). Almost all facilities have cost and environmental benefits through energy efficiency and building optimization. This is often a starting point for the development of Microgrid. By reducing the energy consumption of a facility, the energy team immediately reduces the host`s costs and designs a microgrid that is the right size for the installation.