Energy Efficiency Projects

Most expenses of enterprises can be calculated with a simple equation: quantity × price × time. Money spent on energy can be calculated with the same formula: how much energy is used (quantity), how energy procurements have been conducted (price), and when energy is consumed (time). Knowing these three parameters helps to improve the company’s profitability, which is essential for every commercial enterprise.

In terms of commercial buildings, energy efficiency means an economically reasonable combination of energy consumption, sustainable development, user satisfaction, and proper indoor climate. Energy efficiency and optimal energy consumption directly benefit the owner or user of the property, as these increase their profitability by controlling unnecessary costs. Achieving energy efficiency is not a one-time activity but a systematic process with targeted intermediate stages. Each energy efficiency project starts by mapping the situation, i.e. fixing and describing the current situation.

Our energy efficiency project, which we have tested over the years and which has been proven to function well, consists of three stages:


Preparation / auditing
Realisation / implementation of measures
Follow-up inspection / evaluation of results

The preparatory stage is also called auditing although auditing, in its classic meaning, is not the most accurate term for describing the model we implement. The purpose of the first stage is to determine the current situation in regards to energy or, more broadly, resource consumption. In addition to the activities specified in the scheme, this also includes many different aspects for each individual company from spot metering and surveys to year-long monitoring.

After the first meeting and a general discussion, we can make a specific cooperation proposal to the client for carrying out the entire process or the first stage. Depending on the client’s wishes and possibilities, we can always offer the optimal solution for the schedule, cooperation model, and financing model across all stages.

Taking a financial risk to achieve the success of our chosen energy efficiency measures is usual for us. This is known as Energy Performance Contracting (EPC) in the world and it is often used together with the term ESCO (Energy Service Company). EPC is an energy service contract between the contracting entity and the client (who is usually an ESCO), in which the partner’s investments in energy efficiency measures are paid by the contracting entity on the basis of actual achieved energy savings.

ESCO is defined as an energy service company, which finds the source of funding for the energy project or helps the client in doing so. ESCO earns a profit on the savings from the implementation of energy efficiency measures and provides security for the creation of savings. If the expected energy savings are not achieved in the planned volume, the ESCO will bear the losses.

Energy performance contracting has several formats, but it is important to fix:


what will be done
who will finance it
how the remuneration will take place
what will happen if the planned result is not achieved

The two most common implementation models of energy performance contracting are guaranteed savings and shared savings. In the first case, the contracting entity will finance and make the investments and the energy service company proposes the conservation measures and ensures the energy savings at the agreed level. With shared savings, the energy service company will offer a complete solution from analysing the conservation measures to financing and making the investment.

Regardless of the contracting format, the second stage includes a more detailed planning of measures, planning the activities, and implementing the planned measures. As it is a renovation process, it is crucial not to interfere with the normal use of the building. This requires very precise planning and compiling an organisational plan for the activities. Once the planned activities have been carried out, the monitoring and adjusting stage will begin, which we call the third stage of our complete concept. This stage usually lasts for about 12–24 months to allow us to deploy the planned and realised solutions as efficiently as possible. The value and importance of this stage must not be underestimated, even though investments are no longer being made during that time. During the third stage, we will create value from the investments.

Usually, the potential of improving energy efficiency in non-residential buildings has not been realised in the utility systems. Insulating barriers and work on the exterior facade require major investments for increasing energy efficiency. The savings achieved as a result of these measures is not comparable to the optimal configuration of systems that ensure indoor climate and adding or arranging automation. It is quite common that the most cost-efficient activities that require smaller investments have already been carried out by the company itself (this includes, for example, training staff and raising general awareness).
In accordance with our practice, the most common and cost- efficient measure is installing a well-designed building management system (BMS) and an expense monitoring system (EMS). The building management system manages different systems as efficiently as possible and alerts people of any deviations. Establishing such a system requires accurate terms of reference every time because otherwise, the company will have a building management system, but not a cost-efficient management system. With energy efficiency projects, we find it elementary to define detailed requirements for the management system every time. The programme principles of the building management system and the device sizes also require attention after the installation in order to achieve maximum efficiency with the established system.

The direct benefits of increasing energy efficiency:


1. The value of the property increases
2. Total expenses decrease – improved competitiveness, a more positive cash flow
3. Awareness increases – less administrative costs
4. Lower costs for tenants in commercial buildings with tenants – a better position on the market
5. Cost reduction in conjunction with replacing technology – reduced need for repairs
6. An adequate overview of the actual situation of active energy consumers in the buildings – more certainty

What our customers said

Tenants expectations rise by every year. On one side good indoor climate is needed, but on the other side reasonable costs are also desired. In cooperation with Estonian Energy Service Company we have managed to achieve good results with both subjects.


Hindrek Leppsalu, real estate entrepreneur, member of management board of Sikupilli Keskus

2017-06-04T16:33:54+00:00

Hindrek Leppsalu, real estate entrepreneur, member of management board of Sikupilli Keskus

People at the Estonian Energy Service Company are goal-oriented specialists, who don’t waste time arguing about things, but instead focus on results. Communicating with them makes you feel like your time is spent effectively. With their help, I’ve managed to find solutions to my problems, plan investments, reduce energy costs, and increase my returns on investments. The energy and maintenance costs of our working sites have fell a considerable amount and the results of our partnership have been impressive.


Tiit Ottis, Hotell Olümpia AS

2017-06-04T16:51:24+00:00

Tiit Ottis, Hotell Olümpia AS

People at the Estonian Energy Service Company are thorough and their solutions holistic. Analysis of the current situation, the desired new situation and achieved results are always thoroughly documented. With their help, we have saved energy, created better working conditions for our employees, and adjusted our systems to fit our actual needs. The Estonian Energy Service Company is a reliable partner that I definitely recommend working with.


Alari Maavere, Kaupmees & KO AS

2017-06-04T16:38:34+00:00

Alari Maavere, Kaupmees & KO AS

The Estonian Energy Service Company is a reliable partner that keeps its promises. You can communicate with its professional employees as if they’re your own people. The organisation is characterised by a professional and personal attitude, open communication, and a desire for progress.


Indrek Moorats, E.L.L. Kinnisvara AS

2017-06-04T16:37:05+00:00

Indrek Moorats, E.L.L. Kinnisvara AS

The Estonian Energy Service Company is a dependable and trustworthy partner, and is able to quickly find good solutions, even in complicated situations.


Kairit Matto, Aura veekeskuse juhataja

2017-06-04T16:49:22+00:00

Kairit Matto, Aura veekeskuse juhataja

We have had a wonderful cooperation with AU Energiateenus since the beginning. Their detailed analysis, plan and expertise gave us confidence in their ability to understand our unique situation and to deliver on their promises. While other suppliers have been superficial, they have been transparent in every step of the process and have been able to achieve the estimated results. Every time we call them we find people that are good at communicating and flexible in their approach to keep us happy. They helped us save on electricity costs and our tenants are very happy about that. They are a great company that helps us achieve great results.


Oskars Antans, Technical director of Spice shopping mall at Riga

2017-06-04T16:35:05+00:00

Oskars Antans, Technical director of Spice shopping mall at Riga

People at the Estonian Energy Service Company are more active and better communicators than our other service providers. Thanks to them, we have less to worry about, we track things down quickly, and our own workload has decreased.


Martin Komendant, EKE Invest AS

2017-06-04T16:47:30+00:00

Martin Komendant, EKE Invest AS

The people at the Estonian Energy Service Company are easy to deal with. My calls are quickly responded to and things get done.


Tiina-Kai Vürst, Seesam Insurance AS

2017-06-04T16:41:30+00:00

Tiina-Kai Vürst, Seesam Insurance AS

Friendly collaboration partner. Professional solutions. Competent team.


Harri Rosenthal, Coop Estonia

2017-06-04T16:32:31+00:00

Harri Rosenthal, Coop Estonia

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