We found the key points of the ESCO business model in a research report that the British «Department of Energy and Climate Change», DECC, commissioned to Carbon Trust and SPA Future Thinking.
«Exploring the design of policies to increase the efficiency of electricity use within the industrial and commercial sectors”, dated in November 2012, had to build an evidence base on a system of incentives to stimulate efficiency solutions in the ESCO business environment.
That happens because the Department of Energy and Climate Change pushes the project Electricity Demand Reduction, EDR. This project aims to ensure the effectiveness of efficiency measures and that potential energy and cost savings are actually realized.
Two key points in the ESCO Business Model
The researchers interviewed end-users and ESCOs. Opinions revealed that there´s no unanimity about the best payback period, but, on the other hand, there´s consensus about two key points in this business model:
Trust in ESCO model. Literally:
End users: ‘No upfront cost’ offer is ‘too good to be true’
ESCOs : “The biggest barrier for ESCOs is selling and getting the concept accepted”
Efficiency project size. A single large project is easier to finance than a lot of small projects.
“If [the banks are] going to lend you something, they want to lend you £1m shall we say rather than £10,000.”
CEOs and energy experts collect 200 ideas. America drives clean energy.
The Center for the New Energy Economy (CNEE) at Colorado State University has released a report. The report title is «Powering Forward: Presidential and Executive Agency Actions to Drive Clean Energy in America». 100 CEOs and energy experts developed it last year. Report`s aim is to help President Obama to Curb Climate Change with a Clean Energy Economy. America drives clean energy with this initiative.
Some of these ideas are:
Update regulations related to clean energy technologies. Today’s regulations complicate wind energy and rooftop solar systems at American’s homes. Today’s new energy technologies are 10 years ahead of utilities. Utilities are 10 years ahead of regulations,
Empower state leadership.
Create new opportunities for clean energy investments by the private sector.
Issue even more aggressive goals for the government’s use of third-party financing for energy efficiency and renewable energy improvements in federal operations. This financing tool allows the government to have guaranteed savings on its energy bills at no cost to taxpayers.
Resume reporting the number of green jobs in the economy.
Encourage early adoption of new energy efficiency and renewable energy measures.
Explain how reduce greenhouse gas emissions from existing fossil-fuel power plants.
Issue rulings and interpretations of the tax code to increase incentives for private investors to capitalize clean energy technologies.
Require that oil and gas companies use bestpractices on federal lands on natural gas production.