Joined: 02 Jul 2019
|This company is confident about the equipment & has domain knowledge of the applications , which makes it confident about energy saving predictions.
As the energy saving is the key concern from the environment & competitiveness perspective , lots of inventions in the technologies target energy saving as one of the major objectives .In this process , everyday , we come across new technologies which claim energy saving . However, the customer is hesitant to go for this technology due to two major reasons:
鈥?Higher investment cost
鈥?Lack of confidence on the technologies & also lack of trust with the technology vendors.
Types of ESCO:
鈥?Product based ESCO
These companies are manufacturers of an energy saving product. So , such product ESCO companies offer their product on ESCO model to increase the sale of their products
鈥?Finance based ESCO
These companies are basically financing companies having access to some funds. As they foresee a better return from ESCO business model, they want to invest in it. They normally tie up with energy auditors or manufacturers of energy saving products to confirm the energy saving before entering into the contracts
These are the companies which have domain expertise of a particular field such as HVAC, Lighting, Paper mfg., pumping. They are aware of various ways to reduce the energy consumption in a process , which can be just a process change or intervention by multiple technologies of energy saving. So, they will not only offer a product but will take responsibility of all the system related changes in a process.
There are two ways with which the ESCO model works.
鈥?Performance sharing :
In performance sharing model, the ESCO invests the money. Supplies the equipment to the end customer. During the contractual period, proves & shares the saving with the end customer in mutually decided percentage (e.g. 70:30, 60:40 etc). After the contractual period the ownership of the equipment gets transferred to the end customer. This model is suitable for the customers who are not cash rich.
In performance guarantee model , the energy user invests in the equipment based on the ESCO guarantee of energy saving per month. Once installed, the energy saving per month is found per month. If the saving is less than the amount guaranteed by ESCO, then ESCO pays the difference amount to the energy user. In contrary to this, if the saving amount is more than the guaranteed amount, then the energy user pays the difference amount to ESCO. This process continues for the contractual period. This model suits to the energy user having own funds or to the ones who have very low finance cost.
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GreenMagic is an ENCON business vertical of Teknocrat鈥檚 group , which offers end to end solutions in Energy Conservation, which makes it a dependable partner with assured results.
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What will you do if the scenario in your office is like this? Your company was sponsoring a trade show exhibit next week but your boss received a text message that the event will be moved tomorrow morning. Being the one in charge for the flyers and brochures, you have not even sent anything for printing yet.
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