What are ESCOs and How can They Help?

There is a growing demand for Pennsylvania electric companies to develop sustainable energy strategies. With climate change on the rise, there is an increasing need for electric companies to reduce fossil fuel consumption, reduce greenhouse gas emissions, and in general be more environmentally friendly.

When it comes to sustainable energy models, energy efficiency is key. However, creating a comprehensive energy retrofit project that pays for itself, let alone maintaining and operating one, can be a complex and difficult affair. Not only does the plan need to minimize energy lost or wasted, an energy retrofit project also needs to guarantee that the savings will justify the project.

With the rising demand for energy efficiency, a new type of company has emerged to help Pennsylvania electric companies to make the necessary transitions: ESCOs.

What are ESCOs?

Energy Service Companies (ESCOs) offer an effective and reliable delivery mechanism that provides Pennsylvania electric companies with the maximum amount of energy efficiency resources. ESCOs are experienced when it comes to project design and management, and can help mitigate risks, integrate multiple energy efficiency methods and measures, and provide a guarantee to project lenders that the energy savings will justify an energy efficiency retrofit project.

In essence, ESCOs are reliable project developers. An ESCO contract can last anywhere from seven to twenty years, depending on which measures are installed and the scope of the energy retrofit project.

Types of Benefits ESCOs provide Pennsylvania Electric Companies

When designing an energy retrofit plan for a Pennsylvania electric company, ESCOs will take into account the specific needs of the company. These comprehensive plans will help maximize savings as well as include multiple conservation measures.

ESCOs provide a number of different services, including:

  • Providing Investment Grade Audits.
  • Obtaining and installing necessary equipment.
  • Monitoring and verifying energy savings for the entire duration of an ESCO contract, or longer if the customer prefers.
  • Providing regular energy savings reports and reconciliation plans in the event that energy savings do not meet initial projections.

Over the last three decades, ESCOs have proven their reliability. Since 1990, ESCOs have procured $55 billion in energy savings.

Spring Power & Gas is a great example of how ESCOs work and if you’re looking for an alternative to Pennsylvania electric companies, click here!