Feasibility
A technical and financial feasibility study will need to be carried out in order to ensure viability of a project. The objective of the feasibility study will be to understand the commercial viability of the project. The basic methodology for the feasibility study will include the following:
- The study area over which the analysis will take place;
- Establish the potential feasibility of an ESCO;
- Identify potential energy demands and appraise sites for connection;
- An evaluation of the ESCO options and its organisation;
- An assessment of local heat demand and energy sources, and
- A financial feasibility study.
Have the objectives of the project been agreed?
Have implementation and delivery constraints been identified?
Have operational scenarios been selected, analysed and modelled?
Have energy generation plant sizes been proposed and anchor loads identified?
Has a technical and financial feasibility study of the specified energy services project been produced?
The foundations for delivering an ESCO are based around a successful feasibility study. The objective of the commission will be to identify where potential heat demand exists, appraisal of these sites and connection to the district heating network. The study will evaluate the possible business and funding models for delivery of the network.
Have the objectives of the project been reviewed and agreed?
During the capacity building stage the initial objectives for the project will have been agreed. Following the energy masterplanning stage, it would be advisable to undertake a review of the objectives and understand if they are still relevant.
Have implementation and delivery constraints been identified?
It is important during the feasibility stage to identify potential delivery constraints. These could include planning, operational, financial or political constraints. These must be identified so that measures can be taken to mitigate such constraints.
Have operational scenarios been selected, analysed and modelled?
An appraisal of the operation of an ESCO will need to be carried out. The objective will be to determine the overall economic viability of the project, and modelling will include a technical and commercial analysis of the ESCO. Technical operation modelling will help estimate the scale of potential energy demand and the size of an energy generation plant. The commercial modelling will estimate the potential costs and cash flows from operating an ESCO.
Have energy generation plant sizes been proposed and anchor loads identified?
Energy generation plant sizes should be proposed in terms of capacity (kW) and potential energy generation (kWh). The sizing of the energy plant can be estimated by matching forecast demands from anchor loads. These loads are large consumers and could include: leisure centres; large offices; retail; and, universities.
If you have answered yes to all the questions above, please click on Delivery route and procurement options.