ESCO Energy Service Company
ESCO is the organization which takes guarantee of an energy saving solution & undertakes the financial risks involved in the solutions by assuring the performance. Govt. of India wants to promote ESCO to accelerate the mission of improving energy efficiency of Indian Industries. ESCO is a company having technical knowhow of certain applications of energy saving. It need not be manufacturer of the solutions / products. It may source the solution from a manufacturer & installs the solutions with a service back up for the contractual period. There are two ways with which the ESCO model works... Performance sharing : In performance sharing model, the ESCO invests the money (either own or raised from financial institution). 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 equipme...