Jul 15, 2014, 3:19 PM
News Code: 2721390
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Iran mulls energy service company

Tehran, July 15, IRNA - Managing-Director of Iran’s Fuel Conservation Organization (IFCO) Nosratollah Seifi said that preparations have been made for establishment of energy service market in the country.

Seifi said that these markets would set the price on energy carriers, define the type of contracts and determine conditions for contribution to Iran’s oil sector, Shana reported on Tuesday.

Seifi added that the Petroleum Ministry’s Engineering Affairs Department has defined a single type of contracts for energy services companies.

Energy services companies are required to meet certain conditions before starting their activity, he pointed out.

Seifi said a pricing model is being finalized by Iran’s Petroleum Industry Efficient Energies Council, adding that the final version of this model would be set as precondition.

An energy service company or energy savings company (ESCO or ESCo) is a commercial or non-profit business providing a broad range of energy solutions including designs and implementation of energy savings projects, retrofitting, energy conservation, energy infrastructure outsourcing, power generation and energy supply, and risk management.

After installing energy conservation measures (ECMs), ESCOs often determine the energy savings resulting from the project and present the savings results to their customers.

A common way to calculate energy savings is to measure the flows of energy associated with the ECM, and then to apply spreadsheet calculations to determine savings.