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The ESCO concept

Danfoss Solutions is an “Energy Service COmpany” (ESCO). What does it mean to you? Put simply, it means we guarantee the energy savings performance, we offer.

The ESCO concept is defined in more ways and understood differently from one country to another. However, there are three common denominators of an ESCO:
 
  • ESCOs guarantee energy savings
  • Payment to ESCOs is directly tied to the energy savings achieved 
  • ESCOs can finance energy efficiency measures  

An ESCO offers to go through a client’s buildings and/or processes to identify energy savings potential and implement energy saving measures.  
ESCO with industry focus offers you attractive investments

Historically ESCOs have focused on buildings whereas  Danfoss Solutions’ starting point was the major energy consumers inside the buildings. We focus on industrial processes based on a “follow-the-money” philosophy. In other words, we focus where you get most savings for the money.  

Although, our main focus is industrial processes, buildings are covered with optimization of cooling, heating, and air condition to the extend it is financially viable.    


Closing a gap between savings potential and resources

The ESCO business model is currently boosting forward in Europe and the USA. The most important driver is probably business leaders who increasingly become aware of the strategic potential of energy efficiency.

The ESCO model closes a potential gap between actual energy savings potential and actual resources, such as time, capital, organizational structure or knowledge.   Whether or not financing is part of an EnSave® project is decided by our clients in the specific projects. We offer Energy Performance Contracting (EPC) or client based financing. Read more about this from below link.