Distributed Energy (DE) is a fundamental part of the design of most low or zero carbon energy schemes. Typically, a developer will commission a scheme, usually with an energy services company (ESCO). The ESCO will build, finance and operate the scheme and assume financial and operational risk. The ESCO agrees to make the required energy services available (usually involving the supply of thermal energy as well as electricity) by means of a long-term contract between it and the developer, or an appointed management company. Under that contract, the ESCO undertakes to offer the energy services to individuals on the site on pre-set terms, including price benchmarking.
Note that the ESCO may negotiate for a capital contribution from the developer, possibly based on any infrastructure cost save by the developer as a result of the on-site low/zero carbon heat and power provision.
Tags: de, distirubted energy, energy services company, esco, low zero carbon energy schemes
PAY AS YOU SAVE
The current climate has been it less financially attractive for developers to construct new-build developments which would otherwise have attracted DE solutions.
However, given new-building homes only account for around 1-2% of the total housing stock in the UK, DE can also play a large role in reducing the carbon emissions of the existing housing stock.
The is a report titles Pay as you save-financing low energy refurbishment in housing Aug09.
The report recommnded to government measures to implment and finance low carbon refurbishment to the UKs existing housing stock including the low energy refurbishment provider uses finance, from a 3rd party; the obligation to repay is linked to the property over an extended period of time and the repayments are calculated to be les than the savings that will be made on the fuel bills and at change of tenure the benefit of the measures and the obligation to pay is transferred to the new householder.