what is esco

An Energy Service Company (ESCO) is a business that provides a wide range of energy solutions, including designing and implementing energy savings projects, retrofitting, energy conservation, energy infrastructure outsourcing, power generation, and more. ESCOs typically act as project developers for various energy conservation measures and assume the technical and performance risks associated with the project. They are distinguished from other firms by their use of performance-based contracting methodology, where their compensation is directly linked to the actual energy cost savings. ESCOs offer services such as identifying and evaluating energy-saving opportunities, developing engineering designs and specifications, managing the project from design to installation to monitoring, arranging for financing, training staff, providing ongoing maintenance services, and guaranteeing that savings will cover all project costs. Additionally, ESCOs may provide specialized training for the customers maintenance staff as part of their contracts. These companies are known for their comprehensive approach to energy efficiency, employing a wide array of cost-effective measures to achieve energy reduction and savings.