European industry is facing challenges of the EU obligation to reduce emissions CO₂ and improve the energy efficiency of production. In the current economic slowdown, implementation of energy efficiency solutions can be a way to build a competitive advantage in the industry. With limited resources for investments, one of the optimal ways to implement them is to use the ESCO formula. This model does not involve the company's financial resources and guarantees savings and cash from energy efficiency already in the first year after project implementation.
- The ESCO company guarantees improvement of energy efficiency of the industrial installation. Investments in the ESCO model are financed from external sources, i.e. the client does not engage his cash at the start of the project. However, savings appear already in the first year after the project implementation due to lower costs of energy consumption - says Piotr Danielski, Managing Director of Willbee Energy specializing in energy efficiency improvement projects in the ESCO formula.
#ESCO - an optimal model of investment realization for improvement #EnergyEfficiency in industry!
The traditional model of investments in energy efficiency improvement assumes the involvement of own financial resources, which are returned after about 3-4 years and more. ESCO is an operating model in which specialized companies offer the implementation of various projects that reduce energy demand in the production plant, without the need for the client to engage their own human and financial resources.
ESCO company is the best partner in energy efficiency improvement projects
The ESCO company identifies solutions that reduce energy consumption in a given company and its remuneration is closely related to the real savings achieved. The ESCO model is very attractive for companies, especially industrial ones, because it allows to transfer the elements of energy management to an external entity and use its expertise, experience, tools and financial resources, without engaging its own resources.
- Implementation of energy-saving investments in the ESCO model allows to build a competitive advantage in the industry in times of economic slowdown without the need to incur investment costs. Cooperation with the ESCO company enables the implementation of energy-efficient investments in the best possible way, minimizing technical or financial risks of the project - indicates Anke Fröbel, Managing Director of Willbee Energy.
ESCO - cash from energy efficiency already in the first year after the project!
In ESCO projects, the investment costs are covered by the ESCO company, sharing the savings with the customer. The customer gets part of the money from the energy savings already in the first year after the project, so he has free money to use for other projects.
- Contracts in this model do not have to increase the level of the client's liabilities, they can be off-balance sheet, sometimes being a good means to quickly increase the company's profitability, as the savings are visible in the profit and loss account immediately after the implementation of the investment. It is also a way to transfer financial responsibility, for investments and their effects, to an external entity - explains Piotr Danielski.
The EU ESCO market is growing, Germany at the forefront of growth!
According to recent estimates, the global ESCO market is valued at nearly 27 billion dollars, more than half of which is provided in China. The second largest market is the United States with revenues of nearly 7 billion dollars per year, and the European Union ranks third with revenues of about 3 billion dollars, most of which is Germany alone. The fastest growing markets in Europe are Germany, the Czech Republic, Austria and Hungary.
Willbee Energy is the first choice partner for industry when investing in the ESCO formula!
Willbee Energy has expertise in energy efficiency and experience in implementing such investments in industry, from design to energy efficiency management of the company. Willbee Energy is one of the few ESCOs on the market to provide both financing and implementation of EPC Shared Savings energy efficiency projects in industry. The EPC model assumes the distribution of savings between the customer and the ESCO company. Remuneration of the ESCO from savings motivates to maximize the reduction of energy consumption per production unit, which is the main goal of every industrial company in terms of energy efficiency.
Benefits of working with Willbee Energy in the ESCO model: