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Commonly referred to as ESCO or ESCo, an Energy Services Company or Energy Savings Company, can either be a non-profit business or a commercial enterprise that offers a wide array of energy solutions ranging from designing and executing energy savings campaigns.
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Commonly referred to as ESCO or ESCo, an Energy Services Company or Energy Savings Company, can either be a non-profit business or a commercial enterprise that offers a wide array of energy solutions ranging from designing and executing energy savings campaigns, overhauling and modernizing energy systems, introduce better conservation of energy, outsourcing of energy infrastructure to third-parties, generating power and enhancing energy supply, and managing risks involved in the energy business.
The first recorded commencement of the Energy Services business began sometime in the late 1970s, when the energy crisis was at its peak. The aim of initiating this business was to expand ways to deal with the escalation in energy costs, during the time. One such early example was an organisation set up in Texas, known as Time Energy that proposed a particular tool/instrument to automate the control of lights being switched on-and-off and also introduced a range of other apparatus to control and organise the use of energy. However, none of the devices introduced by Time Energy, managed to sell, as initially buyers were not convinced that energy savings would actually take place with the use of the devices.
To popularise the concept, the company resolved to set up their primary device at the start of the energy project and gather a percentage of the savings that would be collected, with the use of the device. This resulted as the foundation of the Energy Savings Company model (ESCO). With the establishment of this procedure, Time Energy became a success, received rapid sales and achieved huge ROI as the savings got bigger. With this, an increasing number of businessmen initiated new companies as the market for this business began to grow rapidly.

 

 
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