Energy Service Company (ESCO), Energy Services Agreement
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What is an "Energy Service Company?"
An Energy Service Company, more commonly referred to as an "ESCO," is a company that provides/installs and manages a suite of comprehensive energy solutions for a client company which which reduces the energy expenses and greenhouse gas emissions for the client. Many times, the ESCO makes the investment(s) on behalf of the client company and owns/operates/manages the energy solution for a period of time, typically 10 years, through a "Power Purchase Agreement" (PPA).
The energy service company business model originated in the 1980's as a result of energy shortages and energy price spikes, primarily centered around natural gas and natural gas being deregulated by FERC under FERC Order 436. These companies primarily focused in the demand side management market by making "energy efficient lighting" upgrades, replacing old/inefficient lighting with more efficient lighting for hospitals, schools and office buildings.
Today's energy service company provides a much broader range of energy services that include onsite power generation systems such as a cogeneration or trigeneration energy systems. Today's ESCO's have identified a unique market opportunity wherein today's commercial businesses, including municipal/government agencies, are seeking to reduce or eliminate their greenhouse gas emissions as well as reducing their energy expenditures. Therefore, ESCO's are including energy management/energy engineering designs that integrate energy savings projects to include; energy conservation/energy efficiency, energy infrastructure outsourcing, onsite power generation, demand side management and energy supply with risk management.
ESCO's typically perform an in-depth analysis of the client's facility/facilities starting out with a review of the client's past three years energy expenses (natural gas, propane, electricity) and many ESCO's now also include past three years water, sewer and waste expenses as well. After the review and audit of of the past three years energy expenses, the ESCO develops an ESCO solution that installs/owns/operates the optimum energy services solution(s) maintaining the solution(s)/system(s) to ensure performance and energy savings during the payback period.
What is an Energy Services Agreement?
An Energy Service Agreement, also referred to as an Energy Services Agreement is similar to a Power Purchase Agreement.
While a Power Purchase Agreement is typically limited electrical power generated and sold, an Energy Service Agreement delineates and specifies the prices for all energy generated as an Energy Service Company normally installs a highly efficient trigeneration energy system, which generates 3 energies for the price of one - and all the energy a client customer will need - i.e. cooling, heating and power.
of an Energy
• No up-front capital costs
• Ability to monetize the tax incentives
• The ability to utilize accelerated depreciation
• Typically provides a known and long-term energy and power pricing
• No operations and maintenance responsibilities
• Minimal risk to the commercial, industrial or utility client
With Natural Gas priced at $4.00/mmbtu, our Clean Power CHP Systems generate power for about $0.04 / kWh (fuel cost). With operations & maintenance added, that's about 5.5 cents /kWh - or approximately 50% - 60% less than most electric rates.
CHP Systems and Dispersed Generation power plants are an ideal solution for electric utilities, data centers, electric co-ops, electrical sub-stations and hospitals. Our high-efficiency CHP Systems eliminate blackouts, electric grid supply problems and significantly reduce greenhouse gas emissions and hazardous air pollutants associated with electric power generation.
CHP Systems (Cogeneration and Trigeneration) Plants
Have Very High Efficiencies, Low Fuel Costs & Low Emissions
The CHP System below is rated at 900 kW with a
heat rate of 4100 btu/kW & system efficiency of 92%.
(2) Natural Gas Engines @ 450 kW each
on one skid with optional Selective Catalytic Reduction system
which removes Nitrogen Oxides to "non-detect."
CHP Systems may be the best solution for your company's economic and environmental sustainability as we "upgrade" natural gas to clean power with our clean power generation solutions. Our emissions abatement solutions reduce nitrogen oxides (NOx) to "non-detect" and can be installed and operated in most EPA non-attainment regions!
esco [ @ ] EnergyServiceCompany .com
What is "Decentralized Energy"?
Decentralized Energy is the opposite of "centralized energy."
Decentralized Energy energy generates the power and energy that a residential, commercial or industrial customer needs, onsite. Examples of decentralized energy production are natural gas fueled CHP Systems, Rooftop PV and solar cogeneration energy systems.
Today's electric utility industry was "born" in the 1930's, when fossil fuel prices were cheap, and the cost of wheeling the electricity via transmission power lines, was also cheap. "Central" power plants could be located hundreds of miles from the load centers, or cities, where the electricity was needed. These extreme inefficiencies and cheap fossil fuel prices have added a considerable economic and environmental burden to the consumers and the planet.
Centralized energy is found in the form of electric utility companies that generate power from "central" power plants. Central power plants are highly inefficient, averaging only 33% net system efficiency. This means that the power coming to your home or business - including the line losses and transmission inefficiencies of moving the power - has lost 75% to as much as 80% energy it started with at the "central" power plant. These losses and inefficiencies translate into significantly increased energy expenses by the residential and commercial consumers.
Decentralized Energy is the Best Way to Generate Clean and Green Energy!
How we make and distribute electricity is changing!
The electric power generation, transmission and distribution system (the electric "grid") is changing and evolving from the electric grid of the 19th and 20th centuries, which was inefficient, highly-polluting, very expensive and “dumb.”
The "old" way of generating and distributing energy resembles this slide:
The electric grid of the 21st century (see slide below)
Decentralized, Smart, Efficient and provide "carbon
free energy" and "pollution free
power” to customers who remain on the
electric grid. Some customers will choose to
dis-connect from the
(Electric grid represented by the small light blue circles in the slide below.)
Typical "central" power plants and the electric utility companies that own them will either be shut-down, closed or go out of business due to one or more of the following: failed business model, inordinate expenses related to central power plants that are inefficient, excessive pollution/emissions, high costs, continued reliance on the use of fossil fuels to generate energy, and the failure to provide efficient, carbon free energy and pollution free power.
Carbon free energy and pollution free power can also reduce our dependence on foreign oil while making us "energy independent" and reducing or eliminating Greenhouse Gas Emissions.
* Some of the above information from the Department of Energy website with permission.
What is "Cogeneration"?
Did you know that 10% of our nation's electricity now comes from "cogeneration" plants?
is so efficient, it saves its customers up to 40% on their energy expenses, and
provides even greater savings to our environment through significant reductions
in fuel usage and much lower greenhouse
Cogeneration - also known as “combined heat and power” (CHP), cogen, district energy, total energy, and combined cycle, is the simultaneous production of heat (usually in the form of hot water and/or steam) and power, utilizing one primary fuel such as natural gas, or a renewable fuel, such as Biomethane, B100 Biodiesel, or Synthesis Gas.
Cogeneration technology is not the latest industry buzz-word being touted as the solution to our nation's energy woes. Cogeneration is a proven technology that has been around for over 120 years!
Our nation's first commercial power plant was a cogeneration plant that was designed and built by Thomas Edison in 1882 in New York. Our nation's first commercial power plant was called the "Pearl Street Station."
What is an Energy Master Plan?
Now that greenhouse gas reporting is a vital and urgent issue for thousands of business in the U.S., and as they will now have to report their greenhouse gas emissions to the EPA, our Energy Master Plan format has been changed to address these concerns for all of the businesses we perform energy master planning services for.
Our energy master planning services are also focused in a broader focus as well for our customers interested in sustainable energy solutions for reducing their carbon footprint, fossil fuel intensity, total energy expenses, potential for blackouts as well as their overall vulnerabilities to being "tied" to their specific electric utility. Our energy master planning services also improve the air quality and work environment for all of our client's stakeholders through our focus on triple bottom-line results.
Our energy master planning services are not solely focused on our client's facilities' "demand side" of the energy equation, but also how our client's energy is acquired and purchased on their supply side. This understanding that supply and demand side planning is equally important enabled a holistic review of how CUMC uses and pays for energy and the impact of these sources on the environment.
Our energy master plan begins with a review of our client's past three years electricity, natural gas, oil, waste and water expenditures and depending on the final requirements and project scope authorized by the client, will typically include;
Perform ASHRAE " Level 2" Energy Audit
Perform a "retro" commissioning study
Provide a "benchmark" of client's energy use and their greenhouse gas emissions
Review client's current energy procurement methods and develop new strategies for reducing energy expenses
Identify opportunities for onsite power generation, including cogeneration, ecogeneration or trigeneration energy systems as well as renewable energy technologies such as; Distributed PV, Solar Cogeneration and Waste to Fuel
Review existing Power Purchase Agreements and all other energy agreements/contracts.
Identify external funding opportunities such as the use of Power Purchase Agreements
Identify current energy management system and/or building automation system potential
Identify LEED opportunities
What is "Trigeneration"?
Trigeneration is the simultaneous production of three forms of energy - typically, Cooling, Heating and Power - from only one fuel input. Put another way, our trigeneration power plants produce three different types of energy for the price of one.
Trigeneration energy systems can reach overall system efficiencies of 86% to 93%. Typical "central" power plants, that do not need the heat generated from the combustion and power generation process, are only about 33% efficient.
Trigeneration Diagram & Description
Trigeneration Power Plants' Have the Highest System Efficiencies and are
About 300 % More Efficient than Typical Central Power Plants
Trigeneration plants are installed at locations that can benefit from all three forms of energy. These types of installations that install trigeneration energy systems are called "onsite power generation" also referred to as "decentralized energy."
One of our company's principal's first experience with the design and development of a trigeneration power plant was the trigeneration power plant installation at Rice University in 1987 where our trigeneration development team started out by conducting a "cogeneration" feasibility study. The EPC contractor that Rice University selected installed the trigeneration power which included a 4.0 MW Ruston gas turbine power plant, along with waste heat recovery boilers and Absorption Chillers. A "waste heat recovery boiler" captures the heat from the exhaust of the gas turbine. From there, the recovered energy was converted to chilled water - originally from (3) Hitachi Absorption Chillers - 2 were rated at 1,000 tons each, and the third Hitachi Absorption Chiller was rated at 1,500 tons. The Hitachi Absorption Chillers were replaced shortly after their installation by the EPC company. The first trigeneration plant at Rice University was so successful, they added a second 5.0 MW trigeneration plant so today, Rice University is now generating about 9.0 MW of electricity, and also producing the cooling and heating the university needs from the trigeneration plant and circulating the trigeneration energy around its campus.
Trigeneration's "Super-Efficiency" compared
with other competing technologies
As you can see, there is No Competition for Trigeneration!
Our trigeneration power plants are the ideal onsite power and energy solution for customers that include: Data Centers, Hospitals, Universities, Airports, Central Plants, Colleges & Universities, Dairies, Server Farms, District Heating & Cooling Plants, Food Processing Plants, Golf/Country Clubs, Government Buildings, Grocery Stores, Hotels, Manufacturing Plants, Nursing Homes, Office Buildings / Campuses, Radio Stations, Refrigerated Warehouses, Resorts, Restaurants, Schools, Server Farms, Shopping Centers, Supermarkets, Television Stations, Theatres and Military Bases.
At about 86% to 93% net system efficiency, our trigeneration power plants are about 300% more efficient at providing energy than your current electric utility. That's because the typical electric utility's power plants are only about 33% efficient - they waste 2/3 of the fuel in generating electricity in the enormous amount of waste heat energy that they exhaust through their smokestacks.
Trigeneration is defined as the simultaneous production of three energies: Cooling, Heating and Power. Our trigeneration energy systems use the same amount of fuel in producing three energies that would normally only produce just one type of energy. This means our customers that have our trigeneration power plants have significantly lower energy expenses, and a lower carbon footprint.
What is Waste Heat Recovery?
In most cogeneration and trigeneration power and energy systems, the exhaust gas from the electric generation equipment is ducted to a heat exchanger to recover the thermal energy in the gas. These heat exchangers are air-to-water heat exchangers, where the exhaust gas flows over some form of tube and fin heat exchange surface and the heat from the exhaust gas is transferred to make hot water or steam. The hot water or steam is then used to provide hot water or steam heating and/or to operate thermally activated equipment, such as an absorption chiller for cooling or a desiccant dehumidifer for dehumidification.
Many of the waste heat recovery technologies used in building co/trigeneration systems require hot water, some at moderate pressures of 15 to 150 psig. In the cases where additional steam or pressurized hot water is needed, it may be necessary to provide supplemental heat to the exhaust gas with a duct burner.
In some applications air-to-air heat exchangers can be used. In other instances, if the emissions from the generation equipment are low enough, such as is with many of the microturbine technologies, the hot exhaust gases can be mixed with make-up air and vented directly into the heating system for building heating.
In the majority of installations, a flapper damper or "diverter" is employed to vary flow across the heat transfer surfaces of the heat exchanger to maintain a specific design temperature of the hot water or steam generation rate.
Waste Heat Recovery Installation
In some co/trigeneration designs, the exhaust gases can be used to activate a thermal wheel or a desiccant dehumidifier. Thermal wheels use the exhaust gas to heat a wheel with a medium that absorbs the heat and then transfers the heat when the wheel is rotated into the incoming airflow.
A professional engineer should be involved in designing and sizing of the waste heat recovery section. For a proper and economical operation, the design of the heat recovery section involves consideration of many related factors, such as the thermal capacity of the exhaust gases, the exhaust flow rate, the sizing and type of heat exchanger, and the desired parameters over a various range of operating conditions of the co/trigeneration system — all of which need to be considered for proper and economical operation.
Zero Energy Market to Become $1.3 Trillion/year Industry by 2035
Net Zero Energy Buildings Are Coming - What About The Buildings Already Standing?
The market for Distributed PV, also known as "Rooftop PV"
will be a $60 billion/year market by 2013!
We develop energy services company (ESCO) solutions with a focus on lowering our clients energy expenses and greenhouse gas emissions via Energy Service Agreement or Power Purchase Agreement business model. The ESCO will deploy clean power and renewable energy technologies including;
CHP Systems / Cogeneration
Demand Side Management
Energy Master Planning sm
Energy Services (ESCO)
Net Zero Energy
Waste Heat Recovery
Our new company is already receiving tens of millions of dollars in new business opportunities and RFP's each year - and in the past 4 months have received inquiries exceeding $60 million. Our company seeks to leverage these opportunities with a one or more joint venture partner(s) and deploy our solutions to qualified commercial, industrial and utility customers that are located in the USA.
A partial listing of clients include;
* Central Plants
* City centers
* Colleges & Universities
* Company campuses
* Data Centers
* District Heating & Cooling
* Electric utilities
* Food Processing Plants
* Government Buildings and Facilities
* Grocery Stores
* Manufacturing Plants
* Military Bases
* Nursing Homes
* Office Buildings
* Refrigerated Warehouses
* Server Farms
* Shopping centers
Our company's founder has >25 years experience in the energy and utility industry with experience in; Biofuels, Business Development, Demand Side Management, Distributed Generation, ESCO Services & Solutions, Management, Marketing, New Business Start-ups, Real Estate Development, Renewable Energy and Environmental Compliance. His education includes a Bachelor of Arts degree in Economics and an MBA.
Other services (some through affiliate or partner companies):
Advertising, architecture, business development, CHP systems, clean power, cogeneration, conference planning, conferences, emissions abatement, employment, energy master planning, engineering services, equipment sales, jobs, marketing, net zero energy, project development, public relations, renewable energy, sales, solar cogeneration, strategic marketing and trigeneration solutions that deliver!
support the Renewable
Energy Institute by donating a portion of our profits to the Renewable
Energy Institute in their efforts to reduce fossil fuel use by
transitioning to Renewable
Energy Technologies and reducing/eliminating Carbon
Dioxide Emissions and Greenhouse
The Renewable Energy Institute is "Changing The Way The World Makes and Uses Energy" SM by providing research & development, funding and resources that reduce the cost of Renewable Energy Technologies and making a faster transition to Carbon Free Energy, Clean Power Generation, & Pollution Free Power."
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