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Hong Kong Energy Services Company (ESCO)

Registered Energy Assessor Hong Kong
John Herbert
Registered Energy Assessor (REA)

An Energy Services COmpany is a type of business that leverages the cost savings resulting from improved energy performance as part of the finance strategy for retrofitting energy improvement work without the building owner paying any upfront capital investment.

The building owner typically signs an agreement with ESCo, who will install anad manage new equipment, for example, new chillers or new lighting.

During the contract period your expenses remain the same, and after the contract is finished, you keep the equipment, and enjoy lower energy costs thereafter.

The main advantage for the building owner is avoiding the upfront capital expenditure while their expenses remain unchanged, at the pre-contract level, for each kwh used.

If during the term, the actual energy usage is higher than the agreement, those fixed expenses may increase, and because ESCo contracts are typically written by the ESCo, with technical terms, its important to check the fineprint before signing.

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