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Energy Service Contract for FBT

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The Energy Service Contract is generally recognized in the world as a form of relations aimed at energy saving and improving energy efficiency.

As a rule, an Energy Service Company (ESC) performs at its own expense and at its own risk activities aimed at saving energy resources, and receives a return on its investment with added value. The owner of the object (the Customer) is exempt from the need to invest and from the risks associated with the non-return of the investment.

Regulatory framework in Russia :

  1. Federal Law No.261-FZ of 23.11.2009 "On Energy Saving and on Improving Energy Efficiency and on Amendments to Certain Legislative Acts of the Russian Federation".
  2. Federal Law No.44-FZ of 05.04.2013 "On the contract system in the field of procurement of goods, works, and services for state and municipal needs". Article 108 "Peculiarities of concluding energy service contracts".
  3. "Action Plan for improving state regulation in the provision of energy services", approved by the Government of the Russian Federation No. 7803p-P9 of 20.11.2014.
  4. Resolutions and Orders of the Government of the Russian Federation ( http://government.ru/en/).
  5. Orders of the Ministry of Energy of the Russian Federation ( https://minenergo.gov.ru/en).
  6. Orders and Letters of the Ministry of Economic Development of the Russian Federation ( https://en.economy.gov.ru/).
  7. Explanations of the Federal Antimonopoly Service of the Russian Federation ( http://en.fas.gov.ru/).

According to Article 19 of Federal Law No.261-FZ of 23.11.2009, an Energy Service Contract

Must contain:

  • Condition on the amount of energy resource savings, including in value terms, that must be provided by the ES Company as a result of the execution of the energy service contract;
  • Condition on the validity period of the energy service contract, which must be at least the period required to achieve the amount of energy savings.

May contain, among other things::

  • Condition on the obligation of the ES Company to ensure, in the performance of the energy service contract, the modes of operation of energy-saving facilities agreed by the parties, the conditions for the use of energy resources;
  • Condition on the obligation of the ES Company to install and put into operation metering devices for used energy resources if they are not available;
  • Condition for determining the price of the contract, which will based on the achieved indicators, as well as on the cost of saved energy resources.

Abroad, the practice of working on energy service contracts (performance contract) is very common. At the same time, the following classification has developed:

    • Shared Savings contract. All project implementation costs are borne by the ESC. The contract specifies how the savings are divided between the property owner and the ESC. Usually, such contracts are concluded for a period of 3 to 10 years.
    • First Out contract - with a guaranteed return on investment. At the same time, the ESC receives all the economy savings until it returns 100% of its investment, after which the owner of the object begins to receive the savings. The term of the contract is set depending on the level of savings achieved and can be extended.
    • Guaranteed Savings contract -  with guaranteed energy savings. Financing is carried out at the expense of the owner of the object. ESK guarantees the customer to achieve the results of energy saving and money saving specified in the energy service contract.

The experience of working under an Energy-Service Agreement was obtained by employees of "Green Ray Ltd." in Bulgaria at JSC "LUKOIL Neftohim Burgas".

In 2015, a European project was implemented at JSC "LUKOIL Neftohim Burgas" in Bulgaria on the basis of an Energy-Service Contract with HEC coating in the P-101 Furnace of the AVD-1 Unit.

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Results of implementation Furnace Blackening Technology (FTB) in the P-101 Furnace of the AVD-1 Unit of JSC "LUKOIL Neftohim Burgas" for the first 4 months after start-up:

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The employees of "Green Ray Ltd" have practical experience of such work on projects in Bulgaria at LUKOIL Neftohim Burgas JSC, where three projects were implemented in the period from 2015 to 2019.

Reviews of JSC "LUKOIL Neftohim Burgas" can be viewed at the link:

http://greenrays.ru/reviews-from-lukoil-about-fbt/

References of employees of "Green Ray" company on works related to the implementation of the Furnace Blackening Technology (FBT) using High-Emissivity Ceramic (HEC) coatings are described on the website page :

http://greenrays.ru/en/reference-list-for-russia-and-europe.html/

The qualifications, references and experience of the employees of "Green Ray Ltd." are described at the link of this website:

http://greenrays.ru/en/references.html/

Customer reviews can be found on the page:

http://greenrays.ru/en/feedback/

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