Benchmarking  
  Audit  
  Energy Rating  
  Promotion  
  ESCO Support  
  Demonstration
Projects
 
  Local Equipment Manufacturers  
  EE Financing  
 
 



The rapid growth of the industrial sector has strained the capacity of the sector having to focus on multiple objectives. There is opportunity for energy services companies (ESCOs) to assist the industrial sector in achieving energy efficiency objectives without compromising on industrial productivity and growth.

 
 

The overall objective of this component called for the successful development of an energy services companies (ESCOs) support programme in creating a business sector capable of meeting the  energy efficiency challenges of the identified industrial sectors of Malaysia.

The following workshops, seminars and training sessions on business plans, financing, energy engineering & design tools and energy auditing to build the capacity of local ESCOs have been organised.

ESCO Business Development Workshop
   
ESCO Comprehensive Development Workshop
Mini Workshop on Energy Performance Contract (EPC).
 
National ESCO Workshop in collaboration with Component 8
 
Financial Institutions Forum in collaboration with Component 8
 
Mini Workshop on Model of ESCO Business Plan and Strategy
 
Individual consultancy for 7 ESCOs in their respective business
 
Industrial Energy Performance Contract (EPC) Workshop in collaboration with Component 4
 
Energy Engineering and Business Tools Workshop
 
Energy Engineering Tools Workshop follow-up for ESCO
 
Business and Financial Planning Workshop
 
Hands on energy auditing training for 8 ESCO companies in the industrial sector
 
Hands on energy auditing training for 12 ESCO companies in the building sector


The transfer of knowledge and experience, facilitated by both local and foreign experts, have assisted the ESCOs prepare bankable proposals and market their services to a wider clientele. The programme have also achieved the following:

Developed a suitable institutional and legal framework for ESCO activities in the country
Developed institutional arrangements that promotes ESCO to the industrial sector
Advised ESCOs in defining the feasible products and services that they can offer and evaluate the risks associated with performance contracting.

What is an ESCO?

An ESCO or energy service company is one that is trained in providing energy management services to industries/clients. Most ESCOs began by providing engineering services or consultancies to clients, but later, they moved into providing financial solutions as well as risk mitigations for energy efficiency activities. The ESCOs then started backing their services with performance guarantees, secured the financing for the project and introduced a method of loan repayment from the savings enjoyed.


When do you require ESCO Service?

If you answer `Yes' to any or all of these questions, then you are most likely in need of assistance from an ESCO to implement energy efficiency improvement project
s.

Do you need help in identifying and implementing energy efficiency projects?
 
Do you lack available/experienced staff to install and manage the project?
 
Do you lack availabe/experienced staff to maintain equipment?
Do you lack financing?

The Energy Performance Contracting (EPC)

One of the project goals is to promote a scheme of implementing energy efficiency projects that is more attractive than the normal engineering solutions provided by equipment engineers and suppliers. The MIEEIP has adopted the internationally-recognised energy performance contracting (EPC) approach that will offer a more viable solution to the industries, especially in a financial market that has not included energy efficiency as a potential portfolio.

The fundamental principle of the EPC approach is the implementation of energy efficiency projects by transferring the financial, technology and management risks away from the energy end-user to the ESCO.

Among the attributes of performance contracting are:

   
It offers turnkey services, including feasibility analysis, design, engineering, installation and commissioning, maintenance and financing;
ESCOs are compensated based on the performance of the projects;
Most of the technical, financial and operational risks are borne by the ESCOs.

Guide to implementing Energy Efficiency projects under the EPC concept:
1 Preliminary Audit;
   
2 Signing of the MESA
   
3 Detail audit*
   
4 Conceptual Design *
   
5 Detail Design with specification for tendering
   
6 Procurement of Project 
   
7 Installation of Project
   
8 Testing and Commisionig of Project

The MESA

The Master Energy Services Agreement (MESA) was drawn up by the Malaysian Industrial Energy Efficiency Improvement Project (MIEEIP) Team at Pusat Tenaga Malaysia as a sample document to assist energy service companies and industries in the implementation of energy efficiency (EE) activities. It is part of MIEEIP's designated objectives in the overall aim of reducing the barriers to the implementation of industrial EE activities through capacity and institutional building

This is the first attempt at testing the viability of energy efficiency projects under the energy performance contracting (EPC) approach.



*Both processes are involved in the investment grade audit (IGA)

 
See Sample Document : Master Energy Services Agreement (MESA)
Download : ESCO Project Implementation
Case Study : MIEEIP's 1st ESCO Concept Demonstration Project
Proceeding : The 1st Asia ESCO conference, October 20-21, 2005 Bangkok, Thailand

 

Links to International sites

Energy Performance Contract
http://www.aepca.asn.au/documents/epcguide.pdf (australia)
http://www.hawaii.gov/dbedt/info/energy/efficiency/state/performance/epc.pdf(Hawaii)


Measure and Verification
https://www.aepca.asn.au/documents/BPGtoMeasurementandverificationofEner gySavings.pdf

Measurement and Verification of Energy savings document from the Department of Business, Economic Development & Tourism, Energy , Resources and Technology Division State Of Hawaii

.