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New energy efficiency services in the industrial sector. A case study from an ESCO operating in the bio-ethanol industry. Analysis of experience.

Panel: 6. The role of financing to improve industrial efficiency, global perspective

This is a peer-reviewed paper.

Authors:
Claudio Rochas, Ekodoma Ltd., Latvia
Dagnija Blumberga, Riga Technical University
Institute of Energy Systems and Environment, Latvia
Marika Rosa, Riga Technical University
Institute of Energy Systems and Environment, Latvia
Andra Blumberga, Dept. of Environmental Protection and Energy Systems, Riga Technical University

Abstract

The paper is based on a case study of an energy service company providing energy delivery to an industrial plant and then new energy efficiency services.

"ESCO-1" is an energy service company that was founded for an energy partnership contract between another ESCO (Energonams) and an industrial partner. In this specific case the industrial partner has the majority of shares. In this scheme, "ESCO-1" takes over operation and maintenance of the energy supply at the industrial plant using energy delivery contracting (EDC). The ESCO then added new energy efficiency services including the implementation of energy efficiency improvement measures to reduce final energy demand at the industrial plant using EPC combined with the ongoing EDC.

The paper provides and analysis of energy savings by the ESCO company, both at supply and end-user side. The article analyses the measures implemented by "ESCO-1", which operates at the industrial site since three years. It describes the principles under which the ESCO has been established, and the methods for its operation.

The paper shows how human factors are important for successful ESCO operation in the industrial sector, in particular at the initial phase. The analysis shows how this ESCO scheme is a win-win solution, in particular for risk sharing and rising of capitals. These last in "ESCO-1" are raised by: financial investments from savings, co-financing from industrial plant and know-how investments of the ESCO.

In the first year "ESCO-1" developed and introduced a demand side programme for the reduction of energy consumption and gained 10% savings from the costs of energy. The variety of recommendations covered all process blocks of the industrial plant and energy supply. The article reviews methodology for developing and comparing alternatives for improvement of energy efficiency. The paper presents the approbation of the evaluation of the ideas and technical solutions. The method is based on applying a step by step principle and a benchmarking method.

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