|
contents | business | |||||||||
| ESCOs popularity is increasing following recognition by hospitals  Local authorities in Denmark have been increasing their expenditure on energy reductions, and the Energy Service Company (ESCO) model is proving successful in achieving positive returns on investment. Ramboll has played a leading role in introducing ESCO in Denmark and the model has also caught the attention of several other countries and sectors.The rationale behind ESCO is that an investor can finance energy reduction initiatives for public and private buildings and then recoup their money over time from the building developer, who will in turn achieve savings on electricity and heating bills. Under this unique partnership approach, the investor issues a guarantee that the energy savings are realised and maintained, without the developer needing to make any outlay. The investor generates a profit when energy savings are achieved beyond what has been agreed. The concept has been adapted from US and UK, where it is already widely used. Last year, the ten Danish local authorities that account for the highest volume of ESCO projects, shaved nearly EUR 5 million off their spending on electricity, water and heating. So far, 25 out of the 98 Danish local authorities have initiated ESCO projects. Ramboll has experienced strong demand for its six ESCO projects - particularly from Danish local authorities. In two of our latest initiatives, we are client advisor to the municipalities of Hvidovre and Herlev, providing procurement advice and concept development services prior to the appointment of ESCO suppliers. The capital expenditure for each assignment on energy upgrading is on EUR 10-13 million and aim to deliver energy efficiency measures for the municipalities' buildings, primarily through ventilation, climate control, roofs and facades. In Herlev, local traffic signaling systems will also be replaced. The two municipalities expect to achieve annual energy savings of up to 20 per cent on these initiatives. ESCOs popularity is now increasing following recognition by hospitals, public housing and rented accommodation. The model has also sparked strong interest in Germany and other parts of Scandinavia. According to Carsten Pietras, Senior Project Manager at Ramboll, this is due to the fact that many of the international projects feature micro generation, either through ground heat pumps, solar power or biogas. write your comments about the article :: © 2012 Construction News :: home page |