ESCO
The ESCO model is a specific mechanism through which an ESCO partner finances, implements, and manages projects in the field of energy management. This encompasses both energy efficiency improvement measures and the provision of energy as a service, with the return on investment realized through savings or contracted energy delivery. This approach enables users to modernize, secure reliable supply, and optimize costs without substantial initial investments, while the ESCO partner assumes the risk and guarantees the outcomes. This model can be applied both between the public and private sectors as well as between two private partners.
ESCO projects hold particular significance as they address one of the most pressing challenges of our time – energy management. Their value resides in linking users, who serve as incubators of needs, with ESCO partners, who become indicators of solutions through implementation. Such projects are predictable, clearly structured, and based on risk-sharing, making them a reliable and sustainable cooperation model.
In practice, ESCO models are most commonly implemented through two primary contractual forms:
- EPC (Energy Performance Contract) – investment recovery through realized savings,
- ESC (Energy Supply Contract) – energy supply as a service.
The output-based approach in ESCO projects means that funds or technologies are not procured; rather, predefined results are targeted – energy savings, reduction of operational costs, reliable delivery, and enhancement of service quality. The ESCO partner assumes the financing and execution risks, while compensation is secured through objectively measurable outcomes.
As the fundamental law of physics reminds us: ‘Energy and matter cannot be created or destroyed – they can only be transformed.’ The ESCO model is precisely the tool for this transformation – towards a sustainable, secure, and responsible energy system for the future.
