An energy services company (ESCO) is a company dedicated to the provision of energy efficient technology and services including energy appraisals, financing, design, implementation and management of energy efficiency projects.

Engaging an (ESCO) is one way to identify and implement energy efficiency projects in your facility. If your company lacks time, expertise or experience in implementing energy efficiency projects, engaging an (ESCO) could provide the expertise required to implement them.

Types of Services

The typical services that are provided by (ESCOs) include:

Energy appraisal

An energy appraisal is a detailed study on the energy consumption to identify and quantify to save energy . Learn more about energy appraisals.

Project financing

Some ESCOs provide financing for energy efficiency projects. Financing for projects could be available through (ESCOs) or other sources. Do not let unavailability of funds prevent your company from making energy investments that pay for themselves from energy savings.

Project guarantee

A project guarantee requires the (ESCO) to verify that the energy efficiency project meets the energy performance guarantees. (ESCO) provides a guarantee that the project will achieve the promised energy savings. Any shortfall in savings will therefore be made up by the (ESCO). To do that, (ESCOs) provide project monitoring and verification.

Equipment maintenance and servicing

For (ESCOs) to achieve the guaranteed energy savings stipulated, they often will require a maintenance contract of the equipment.

Companies can enter into performance contracts for the implementation of the energy efficiency projects. More information on performance contracting can be found here.

Selecting an (ESCO)

It is important to select an (ESCO) that matches your needs and requirements best.

1. Request for the ESCO’s project references and track records. Carefully assess their technical expertise and experience in implementing projects of similar scale and scope to yours.

2. Request for the ESCO’s financial statements if project financing is required. Review their financial capability and stability.

ESCO Accreditation Scheme

Energy Sustainability Unit (ESU), a unit of the School of Design and Environment, National University of Singapore, administers an accreditation programme to enhance the professionalism and quality of services offered by ESCOs. The list of accredited ESCOs in Singapore can be found here.

Find out more about the ESCO Accreditation Scheme at the ESU website.