Although ESCO companies exist for more than half a century, only recently has the interest in ESCO model implementation increased. The aim of the ESCO projects is to reduce energy and maintenance cost by installing new and more efficient equipment and optimizing energy systems, which ensures investment repayment through savings in the period of 5 or 8 years, depending on client and project. The risk of savings being achieved is assumed by an ESCO company by giving guarantees to the client in accordance with the international protocol.

APIS ESCO is a division of APIS energy service-providing company which develops, implements and finances energy efficiency projects on a commercial basis. Projects include energy efficient modernization, reconstruction and refurbishment of existing plants and facilities including installation of renewable energy sources. After the investment is repaid, APIS ESCO withdraws from the project and passes all benefits to the Client.

Market

Market potential for energy efficiency projects in Kosova is estimated at more than 0.7 billion EURO and is on the steady increase. This is due to growing prices of oil, gas, electricity and other sources of energy, the process of harmonization with the EU where energy efficiency has become a high priority topic, the strengthening of “green” awareness, etc. APIS ESCO additionally develops the ESCO market for the services which besides energy savings include investment payback through savings.

APIS ESCO clients are customers of all forms of energy in the following areas:

In addition to clients from the above areas, domestic businesses, consulting and engineering firms, equipment manufacturers, installers, commercial banks and others are included in the projects by APIS ESCO.

Benefits

The client or end user of APIS ESCO services is the direct beneficiary of all benefits deriving from the execution of an ESCO project.

The benefits of a APIS ESCO project are:

• Knowledge and new equipment immediately with existing costs
  The client gains international knowledge of ESCO business operations and new efficient equipment immediately.
• Investment repayment from savings
  The client pays back the investment for energy efficiency from savings over a period of 5 or 8 years.
• APIS ESCO assumes the risk
  Project technical and financial risk, organization and management in all phases are assumed by APIS ESCO. Depending on project type, APIS ESCO assumes the risk of savings being achieved over the investment payback period and guarantees for their achievement.
• Client has an extensive insight into the project
  The cooperation with the client in all project phases unfolds through a joint expert team.
• Client contributes to pollution reduction
  Energy efficiency projects directly contribute to reduction in environmental pollution.
• ESCO’s fast withdrawal from the project
  After the investment is repaid, APIS ESCO withdraws from the project and leaves all project benefits to the client, including reduced energy and maintenance costs.

Basic Principles

The investment for ESCO projects is repaid through savings.

For a project with APIS ESCO it is not necessary to secure financial resources for energy efficiency which are repaid during 5 or 8 years, depending on client. This means that it is possible to undertake the project without any financial burden.

Legend:

• phase I – before APIS ESCO project execution
• phase II – during investment payback
• SAVINGS for investment repayment
• phase III – after investment payback

During the repayment for the investment in energy efficiency, the client pays an even amount which is divided into energy cost (blue II) and investment repayment cost (green).

What is different in ESCO model