E.S.Co model and EPC
Efforce platform brings together those who want to improve the energy efficiency of their buildings or industrial processes with a pool of contributors interested in being repaid in tokens representing the energy savings achieved.
This method of implementing the energy efficiency market for the first time makes a particularly complex energy-financial system simple and accessible. Thanks to Efforce any economic entity wishing to implement solutions on its energy systems, be them industrial processes or buildings, will be able to negotiate part of its energy savings directly with contributors.
Through the tokenization of the energy saved, it will be possible to guarantee liquidity and extend access to capital investment. To optimize the cycle of financing and access to capital, Efforce allows the tokenization of energy savings. It represents a contractual mechanism between companies wanting to improve the efficiency of their processes and contributors.
The proposed model is the same as that of Energy Service Companies (E.S.Co) which, through Energy Performance Contracts (EPC), manage to obtain positive economic returns against an initial investment in energy efficiency projects. This contractual form makes it possible to channel financial investments into projects for the redevelopment and performance improvement of an energy system, be it an industrial plant or a building, owned by a third party (the Beneficiary).
The value of energy savings deriving from the intervention is shared between the E.s.Co, which made the investment and implemented the redevelopment process, and the Beneficiary. The E.s.Co uses its own energy saving quota to make a return on the investment, while the Beneficiary sees its energy expenses decrease. Energy Performance Contracts allow the savings deriving from lower energy consumption to be divided between the party that improved the performance of the efficiency-improved energy system (the E.s.Co) and the party benefitting from the energy efficiency intervention (the Beneficiary)
The way it works is extremely linear from a financial point of view, but decidedly more complex from a technical-implementation point of view:
  1. 1.
    Before carrying out an energy efficiency project, any entity that owns an energy system pays its bill to a private or state-owned supplier of electricity and gas.
  2. 2.
    The E.S.Co evaluates the energy systems owned by the Beneficiary and implements them, in order to invest its financial resources in redevelopment interventions or energy efficiency improvement of plants or buildings.
  3. 3.
    For the entire duration of the contract, the Beneficiary pays a part of the energy savings generated to the E.s.Co. This gives a return on the initial investment.
  4. 4.
    At the end of the contract, the Beneficiary can take full advantage of the savings and the technology installed.
  5. 5.
    The financial investment is fully borne by the E.S.Co. The Beneficiary obtains an immediate guaranteed reduction of energy costs and, at the end of the contract, benefits from a new and already installed efficiency improvement intervention.
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