ESCOs, Myth and Reality: Negotiation misunderstandings when outsourcing energy efficiency

Energy efficiency outsourcing negotiations, as mathematical coupled system problems, are concerned by multiple dimensions -business administration tools, state-of-the-art technologies knowledge, legal frameworks, specific national energy policies, organization structures and operative mechanisms experience- that must be managed as dependent variables related to each other in a unique process. Energy Services Companies (ESCOs) business model is commonly introduced as a one-dimensional matter, simple and universal. This simplicity is the cause of negotiation misunderstandings; it also is a real barrier for a wide implementation of this interesting solution for energy efficiency outsourcing requirements. The aim of this brief book is to stress and give solution to the complexity of unexplored fields in ESCO matters to make win-win arrangements easier from a non-unilateral point of view. Although elemental concepts are described for a better understanding, this approach is neither about energy efficiency nor about ESCO basics; actually, it has to do with a transversal and global vision of the different dependent variables involved in the dealing sequence between customers -facilities ownership or institutional holders- and ESCOs –energy services companies-. Either you act on behalf of an ESCO or of an organization looking for energy efficiency, this new book will uncover to you a set of powerful clear-cut concepts. You will accomplish long term agreements without issues out of the blue during the long lasting relationship with your business partner. A convenient step-by-step approach to new technologies for energy efficiency, ensures you to save your resources. No more ESCO business model's secrets for you after reading it. Contents 1 APPROACH TO ENERGY EFFICIENCY AND THE ESCO MODEL. 1.1 Efficiency concept. 1.2 Energy efficiency idea. 1.3 Energy efficiency management. 1.4 ESCO business model basics. 2 ESCOs CONTRACTING MODELS. A REASONABLE COMPENSATION BETWEEN RISKS AND GUARANTEES. 2.1 ESCO contracting drivers. 2.2 Contracting models description. 2.2.1 Energy Performance Contract (EPC). 2.2.2 Energy Supply Contract (ESC). 2.2.3 Build Own Operate Transfer (BOOT). 2.2.4 Chauffage. 2.2.5 First Out. 2.2.6 ESPCs. 2.2.7 4-5Ps. 2.2.8 Leasing. 3 TRADITIONAL FINANCIAL ANALYSIS. 3.1 Customer analysis. 3.2 ESCO analysis. 4 BEYOND THE COMMONLY KNOWN TERRITORIES. 4.1 More answers are required. 4.2 Two things to know before dealing:Obsolescence and LCCA. 4.3 Four issues to focus on negotiation. 5 GLOCALIZATING ACTIVITIES, COMPLEXING THE MULTIVARIABLE EQUATION. 5.1 About glocalization. 5.2 Local Framework Conditions. 6 ESCO BUSINESS NEGOTIATION: FROM THE DEFENSE OF SELF-INTEREST TO WIN-WIN AIMS. 6.1 EE-ESCO business essence. 6.2 Negotiation sequence. 7 BUSINESS PROPOSALS, PRESENTING AN ESCO PROJECT. 7.1 From customer to ESCOs. 7.2 From ESCO to customer. 8 RECOMMENDATIONS. POSTFACE. Controversies of the future. 1- The future of ESCO industry environment and the WEC energy Trilemma. 2-American pragmatism vs European contradictions. Who moved my cheese? 3-Energy efficiency: anyway, the best fuel to compete in a global market. Bibliographical references Index Online Contents