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The ESCO guarantees that the improvements will generate energy cost savings sufficient to pay for the project over the term of the contract. After the contract ends, all additional cost savings accrue to the agency. [2] The savings must be guaranteed and the Federal agencies may enter into a multiyear contract for a period not to exceed 25 years.
The grant funds could also go towards transportation programs that conserve energy, projects to reduce and capture methane emissions from landfills, renewable energy installations on government buildings, energy efficient traffic signals and street lights, combined heat and power systems, district heating and cooling systems, and other projects ...
The energy savings project often begins with the development of ideas that would generate energy savings, and in turn, cost savings. This task is usually the responsibility of the ESCO. The ESCO often approaches a potential client with a proposal of an energy savings project and a performance contract. This ESCO is said to “drive” the project.
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Energy subsidies are measures that keep prices for customers below market levels, or for suppliers above market levels, or reduce costs for customers and suppliers. [4] [5] Energy subsidies may be direct cash transfers to suppliers, customers, or related bodies, as well as indirect support mechanisms, such as tax exemptions and rebates, price controls, trade restrictions, and limits on market ...
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