Swiss

Evaluation of energy services and éco21 objectives and associated action plans

EXPERTISE : , Energy Performance Contracting
SECTOR : , Industrial

Client

SIG/éco21 .

Project description

SIG is an energy service company supplying the Canton of Geneva. SIG provides customers with regulated services, including distribution of electricity, natural gas and drinking water, sewage and waste treatment, telecommunications and remote heating. SIG also offers unregulated services through activities that must allow itself to meet an acceptable profitability threshold. Unregulated activities are offered by SIG Services, a division of SIG.

In addition, SIG also runs a CHF 52 million program to promote and support the implementation of energy efficiency measures in the electricity sector by its customers through a program called éco21. This mandate must be carried out in a cost-neutral way (without profit) for SIG Services.

highlights

To help structure this mandate, Econoler began by studying SIG’s business environment regarding energy, legislation and competition.

Econoler’s consulting assignment consisted of two parts:

Part 1: Econoler evaluated methods and means for providing commercial services using the energy performance contracting (EPC) approach as practiced by energy service companies (ESCOs). This part involved carrying out the following tasks:

  • Identifying key factors critical for the successful launching of an ESCO.
  • Analyzing best practices regarding an ESCO’s internal structure, required expertise, market positioning, financing solutions and EPC models.
  • Developing strategic recommendations for SIG to follow to implement an ESCO.
  • Providing training on conducting comprehensive energy audits.
  • Developing model contracts for the provision of EPC services.

Part 2: Econoler analyzed the éco21 program and made recommendations on improving its effectiveness and determining the probability of achieving its goal of reducing electricity consumption in Geneva. The program evaluation consisted of the following activities:

  • Analyzing the position of the éco21 program within this context.
  • Presenting examples of best practices applicable to the program.
  • Analyzing the program’s various action plans.
  • Developing recommendations on improving the management and performance of the éco21 program.

A detailed and comprehensive report was submitted by Econoler, with recommendations regarding: (1) the best approaches suggested for SIG Services to integrate the EPC concept into its operations; and (2) the optimization of the synergy between the éco21 program and the energy services that SIG intended develop.

As an additional value-added service, following completion of the assignment, Econoler provided SIG Services with technical support for developing an investment grade audit (IGA) for the main hospital of Geneva as part of SIG’s effort to prepare an offer under an EPC approach.

As a result of the overall assistance provided by Econoler, SIG Services was in a position to develop its strategy for implementing EPCs and determining the main direction of the éco21 program.

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