ESCO | LED lighting ESCO

What is ESCO?

ESCO is acronym of Energy Service COmpnay. This is a company which is ready to execute energy conservation projects on performance basis. i.e. the revenue model of the ESCO is based on the energy saving performance of the equipment supplied by ESCO. This company is confident about the equipment & has domain knowledge of the applications, which makes it confident about energy saving predictions.


As the energy saving is the key concern from the environment & competitiveness perspective , lots of inventions in the technologies target energy saving as one of the major objectives .In this process , everyday , we come across new technologies which claim energy saving . However, the customer is hesitant to go for this technology due to two major reasons:

  • 1. Higher investment cost
  • 2. Lack of confidence on the technologies & also lack of trust with the technology vendors.


This aspect results into huge loss of energy saving opportunities.

So, there is a need of an entity, which creates this confidence & trust about technologies. In India, at present there are approx... 150 ESCOs registered with BEE (Bureau of Energy Efficiency), with less than 25 active. On the contrary, China has more than 5000 ESCOs, which had been instrumental in changing the Energy Efficiency scenario in China in last 10 years.

Realising this, Govt. of India has taken initiatives to promote ESCO & has offered few benefits for ESCOs to sustain.

How does ESCO work?

There are two prevailing models of ESCO business.

01. Performance sharing model

The supplier invests in the project& accepts performance based revenue per month for the contractual period. This model suits to the energy user , who does not want to invest for some reason

LED lighting ESCO

Performance Guarantee

The energy user invests in the equipment. However, the supplier guarantees the performance by accepting to pay per month, if the energy saving in the month is less than the committed value. Vice versa, if the energy saving is found to be more than the committed one, and then the energy user will pay the difference to the ESCO.

Types of ESCO

Based on the competencies of the company, the ESCOs can be classified as follows ..

01. Product based ESCO

These companies are manufacturers of an energy saving product. So, such product ESCO companies offer their product on ESCO model to increase the sale of their products

02. Finance based ESCO

These companies are basically financing companies having access to some funds. As they foresee a better return from ESCO business model, they want to invest in it. They normally tie up with energy auditors or manufacturers of energy saving products to confirm the energy saving before entering into the contracts

03. System ESCO

These are the companies which have domain expertise of a particular field such as HVAC, Lighting, Paper mfg., pumping. They are aware of various ways to reduce the energy consumption in a process , which can be just a process change or intervention by multiple technologies of energy saving .SO, they will not only offer a product but will take responsibility of all the system related changes in a process.

ESCO services by GreenMagic :

GreenMagic is an energy conservation business of Teknocrat’s Control systems (I) pvt. Ltd, a structured organisation, with more than 25 years of experience in Indian Industries .

It is empanelled ESCO organisation with BEE (Bureau of Energy Efficiency).

It offers system ESCO solutions on both ESCO models i.e. Performance sharing & performance guarantee.

At present, Greenmagic offers systems ESCO services in three segments:

01. Lighting

02. Small HVAC systems ( With individual ACs)

03. Large HVAC systems ( with centralised AC plants )

Lighting ESCO

Based on 25 years of industrial experience & able technology associates like PHILIPS. Greenmagic team has developed an integrated solution to save energy in lighting application. It is applicable for shop floor lighting as well as highway lighting.

The technology includes:

01. Day Light Harvesting

02. LED lighting

03. Voltage optimisation

04. Automated switching

05. Dimming based on ambient light level

06. GPRS based remote control

Our technology associates:


Energy consumption on HVAC is a major pain area for all types of industrial & commercial establishments. Small HVAC systems are defined as individual / isolated air conditioners working at different areas in an installation.

Major technologies used are:

01. Refrigerant additives for effective heat transfer

02. Optimised control of compressor

03. Occupancy control


Large HVAC system is defined as an HVAC installation where the centralised chillers are used.

Major technologies used are:

01. High efficiency chillers

02. Effective heat transfer

03. High efficiency AHUs

04. Optimisation of heat transfer in fresh air

05. Insulated roof paints

06. Occupancy sensors

07. Centralised control systems