What is an ESCO?

The global movement toward energy efficiency (EE) and the use of renewable energy (RE) in businesses is beginning to gain ground in the Philippines. This is due in large part to the need to find solutions to the country’s ever-increasing energy costs.

In addition to offering educational and training programs, the government encourages local businesses to adopt green standards by supporting and working in partnership with ESCOs, or energy service companies.

TREES is an ESCO that has responded to the Philippine government’s call to promote energy efficiency in the country. Founded by the top management of Total Energy Solutions, the leading independent ESCO in Australia, TREES provides over 100 years of collective expertise that has allowed the success of many EE and RE projects in Australia.


What is an ESCO?

An ESCO is a business that performs the following:


Unlike other energy-efficiency improvement companies, ESCOs offer their services under a performance-based agreement. The ESCO’s own financial returns are incumbent on the cost savings generated by the project, essentially shifting the project’s inherent risks to the ESCO.


Benefits of Working with TREES

As a leading ESCO in the Philippines, we at TREES offer our clients several important benefits:

EXPERTISE: TREES’ engineers are highly trained in all the technologies the company implements, as well as in the various aspects of general contracting. These include construction inspection, commissioning, management, and contract administration.

TURNKEY SOLUTIONS: TREES provides turnkey solutions, from project design to implementation to monitoring, freeing clients to focus on their core business. An “Owner’s Engineer” is designated as project manager, and serves as the client’s solo contact point, regardless of the number of suppliers or contractors the project may involve.

GUARANTEED SAVINGS: TREES guarantees the energy savings to be generated by a project over a period of five or more years. This aspect of TREES’ service is essential to the effectiveness of the entire project.

FINANCING. TREES uses its guaranteed savings to help clients obtain financing for the project. TREES may provide initial funding for the project, or help the client obtain financing from a third party

RISK REDUCTION & MANAGEMENT. With TREES’ guaranteed performance service, we shift the project’s inherent risks to ourselves, making the project highly viable for our clients.


Return on Investment

There are two financing models that ESCOs adopt to provide assistance to their clients:

1.    Shared savings – the ESCO provides the capital investment, and receives payments under any of the following arrangements:

a fixed percentage of the savings

a share of the savings plus a fixed amount

a fee scale, where the fee is reduced over time as the ESCO’s investment is recovered

if actual savings exceed the target, both the client and ESCO may benefit


2.    Guaranteed savings – the ESCO provides the capital investment, but the client may also put in their share. The ESCO receives payment through the following:

a fixed payment term and schedule, with the ESCO guaranteeing at least a minimum energy savings level

if the actual savings exceed the target, the ESCO may not benefit from the excess


Contact TREES Corporation to learn more about the financing options we offer. Do not pass up on this chance to improve your business’ energy efficiency, reduce your O&M costs, and help protect the environment.