Services Overview

ESCO Services     Carbon Services     Green Energy Finance     Green Retail

An Energy Services Company that designs, implements and finances energy efficiency and energy conservation projects on behalf of its Project Promoter under a guaranteed performance basis.

It guarantees amount of energy savings through an “Energy Performance Contract” and ties up its remuneration / returns to the quantum of Energy Savings achieved. It can also finance or arrange finance for the operation.

In essence, RENCO’s ESCO Services provides single-point solution to realizing Energy Efficiency by assuming financial and performance risk and providing guaranteed savings to its customers.

Basic ESCO Business Models:

    Guaranteed Savings Model:
    Guarantee of the energy saved and the value energy saved is guaranteed to meet debt service obligations. Funding liability goes on the client’s balance sheet and this may affect the client’s borrowing limits.

Shared Savings Model:
Project Promoter and the ESCO share a pre-determined percentage split of the energy savings cost. ESCO’s carry both the performance risk and the credit risk. Financing for the Project Promoter is often off-the-balance sheet. The economic viability rests on the price of energy.

Special Purpose Vehicle (SPV) Model:
Financing is done through a separate entity (SPV) created specifically for the project. SPV collects the revenues and pays-off the financial debt.

Why use RENCO’s ESCO-Biz Model?

  • Shared Financial Risk : Off the Project Promoter Company’s Balance Sheet
  • Carbon Credit Revenue: The Project Promoter can enjoy the benefits of Carbon Credit Revenue even after the ESCO contract seizes
  • SPV is a specialist company with all skill sets. The Project promoter need not move from their Core Competence which would have conventionally resulted in Time & Cost Over run
  • Future Power prices are projected and considered for the first 10 years. The rest of 15 years of life of the equipment costs only the O&M cost considered. Hence Power generation cost becomes negligible
  • Enhance Brand Image as a Green Company
  • A Biz Model tried, tested & well-proven in the industrialized countries (USA, UK, Canada, Australia, etc.) and now being introduced in India, as a result of the substantial increase in fossil fuel prices and / or frequent power outages.