EPSRC projects of certain relevance

Building Market Transformation

EPSRC website: http://gow.epsrc.ac.uk/ViewGrant.aspx?GrantRef=GR/S94292/01
From "key conclusions":
"High uptake of CHP and renewables by 2050 could imply significant commercial opportunity for Energy Services Companies (ESCos), particularly in social housing and in new build."

Bertoldi P, Hinnells M, and Rezessy S (2006) Liberating the power of Energy Services and ESCOs in a liberalised energy market. Paper to EEDAL 06 (Energy Effiicency in Domestic Appliances and Lighting, London June 2006.

Contact: Mark Hinnells http://www.eci.ox.ac.uk/people/hinnellsmark.php

Transitions to a Low Carbon Economy

EPSRC website : http://gow.epsrc.ac.uk/ViewGrant.aspx?GrantRef=EP/F022832/1

Tim Foxon's presentation mentioning ESCos
Transition Pathways For a Low Carbon Electricity Future (Theme 1) - Dr Tim Foxon
Part of Thousand Flowers scenario, connected with local generation
Check articles.
Contact: Tim Foxon

Current MUSCo activity (?)


No standard organisational structure for ESCOs has been developed in the UK, but guidance produced by the London Energy Partnership provides information on successful schemes. The projects below illustrate how these framework and structures could be applied to urban schemes. In the Budenberg Haus Project in Altrincham, Urban Splash and EcoCentreGen have successfully established an ESCO linked to the development of 290 homes.

A step further than ESCOs are multi-utility service companies or MUSCOs. These companies provide a variety of utility services and can ensure strongly joined-up service infrastructure and a highly efficient customer interface. Low carbon municipal MUSCOs are an excellent opportunity for local authorities to grasp the full opportunity for sustainable service infrastructure in cities and towns, while ensuring the benefit for the community is fully realised. The same team that established the Altrincham ESCO above has ambitions for the creation of a MUSCO linked to the New Islington Millennium Village development in Manchester.

Link to London Energy Partnerships: Making ESCOs work http://www.lep.org.uk/uploads/lep_making_escos_work.pdf

ESCo Scoping Study Camborne, Redruth and Pool Cornwall
B3.1. Provision of MUSCo Services
In some projects additional services are included to enhance the provision of energy
services to the development. Services such as water management and the provision
of an integrated ICT structure to provide internet services as well as monitoring and
CCTV services throughout the development could be included to provide a MUSCo
(Multi Utilities Supply Company) solution to the provision of services at the
The added benefits of a MUSCo approach are that there is one body providing all
services to site. This improves coordination of the installation of services and gives
customers a single point of communication with all services provided to the site
through a single customer services and billing centre.
If considering a MUSCo approach, it is essential to determine at an early stage of the
development which services should be delivered by the MUSCo to allow a
partnership between all service providers to be developed.

Southwark MUSCo plan abandonned: http://www.london-se1.co.uk/news/view/5052
Southwark Council is poised to shelve its plans for a multi-utility services company (MUSCo) to provide heating, cooling, electricity and communications to developments constructed as part of the Elephant & Castle regeneration.

From Rajat Gupta: Other examples which have received some success include Woking Borough Council which achieved above 60% reductions in CO2 emissions. Southwark Council operates an in-house ESCo for delivering a number of CHP schemes supporting community housing schemes. See: http://www.pas.gov.uk/pas/core/page.do?pageId=119208

**From TCPA eco-towns annex 5 ICT:**
MUSCo Utilities Model – Elephant and Castle9: A MUSCo consortium has
been created to support the redevelopment of the Elephant and Castle Area
between the following utility and technology partners: Dalkia & Three Valleys
Water, Inexus Fibre Networks Ltd, London ESCo, Veolia Water Outsourcing
Ltd & BskyB, Thameswey Energy Ltd, Albion Water Ltd and Redstone. The
delivery objectives of the MUSCo can be summarised as follows:
• Deliver integrated low carbon energy, non-potable water and data
services infrastructure via a combined services corridor
• Planning, design, construction, operation and then management and
administration of the infrastructure and services
• Meet performance targets including carbon emission targets and water
quality standards
• Manage the use of the infrastructure in the case of heat, cooling, power
and water services as the sole provider. And ensure equitable access
to data services for all potential service providers (telephony, TV,
internet connectivity) and other procurers of bandwidth available in the
• Make provision for the integration of renewable energy technologies
and locally derived sources of biomass fuel
Access will be provided for all ICT service providers to an area-wide ducted
fibre-optic network. The MUSCo will finance and install the optical distribution
network to the basement plant room in each building and provide the network
termination equipment at either end. Building developers can then install the
fibre distribution within the building to the customer premises equipment
“gateway box” in each apartment. The MUSCo charges service providers for
access to the network.
ref (link no longer works): http://www.elephantandcastle.org.uk/downloads/muscodocuments/
Working link to presentation: http://www.buildingcentre.co.uk/downloads/underground_london.pdf
See also : http://www.bdunlop.com/services.htm

Definition of MUSCo as utility supply
What are ESCos and MUSCos?
Energy Service Companies (ESCos) is a term used when referring to companies that provide the services of an Energy Supply Contract.
Multi Utiltiy Service Companies (MUSCos) is term usually refers to companies which provide the services of an energy supply contract for an expanded range of utilities. For example, as well as the generation and distribution of heat, cooling and power, they may also supply infrastructure or complete systems for water, sewage and telecoms.
The MUSCo would typically be the owner of the assets, and would receive repayment of it's capital investment through standing charges and/or usage charges.

Davis Langdon company:
http://www.davislangdon.com/EME/Sectors/InfInd/EU/PowerTransmission/ESCoAndMUSCoSolutions/ (no examples)
On development projects where several utility services need to be installed in unison, appropriately accredited companies can provide multi-utility services installations. These solutions can provide economies of scale in terms of cost and may ultimately benefit the overall programme. It is also possible to line a MUSCo to an ESCo to provide a complete and co-ordinated utility solution to development projects.
ESCo and MUSCo solutions
Projects with appropriate energy usage profiles have recently received significant interest from companies offering to manage the utility services under an ESCo arrangement. These energy services companies can offer an alternative service to that provided by traditional statutory undertakers. The Utilities Infrastructure Team have negotiated ESCo agreements on some of the premier developments in the UK.
On development projects where several utility services need to be installed in unison, appropriately accredited companies can provide multi-utility services installations. These solutions can provide economies of scale in terms of cost and may ultimately benefit the overall programme. It is also possible to line a MUSCo to an ESCo to provide a complete and co-ordinated utility solution to development projects. Utility Infrastructure services are generally considered a necessary evil in developing a project.
The costs of installing these assets are often written off as a cost to the development. By introducing an ESCo to a development, it has been proven that capital costs of installing these assets can be reduced or removed from the balance sheet and opportunities for an ongoing revenue stream can be realised

Ensuring Eco-Towns are Delivered
However, one strategic option that needs early consideration is whether to set up or find
a partner which can act as an Energy Services Company (ESCO) or Multi-Utility Services
Company (MUSCO). Both can now operate across a whole urban area and could provide
a means of co-ordinating infrastructure provision and ensuring that the various strands
(energy supplies, monitoring arrangements, information systems, water and waste
systems, etc.) are all designed to facilitate the vision of the eco-town. The provision of
these services can support sustainable lifestyles by providing information on:
  • l When the next bus will arrive.
  • l How much energy a house is using.
  • l How to minimise and recycle waste.
  • l Water use and re-use.
  • l Community services.
By contrast, sustainable lifestyles could be frustrated by the absence of such services.

Manchester ESCO Feasibility Study

Bedzed need for escos

From World Energy Council "Energy Efficiency Policies around the World: Review and Evaluation"
In the UK where the Energy Efficiency Commitment obliges energy suppliers to achieve energy savings with their customers, several programs were aimed at increasing the interest of consumers in EPC, but with limited success: consumers could not believe that energy suppliers were interested in reducing energy use and feared that the energy audit would be used to sell other products.
Furthermore, they judged EPC to be too complicated and not even free since they are paying a premium. Since the price for cavity insulation is very low in the UK, energy performance contracting is not considered necessary and effective. Other barriers to EPC in this sector include initial capital constraints and fiscal/VAT barriers. In Hungary, for example, EPC projects only enjoy reduced VAT rates if the ESCO operates the equipment and the project is therefore classified as an energy service project .


From Rajat:

Saxena, S., Hinnells, M., ‘Can Energy Services Companies deliver low carbon new build homes?',2006. Paper to BIEE conference. Oxford. Available from URL: http://www.eci.ox.ac.uk/research/energy/downloads/bmt-report4.pdf

· Bertoldi P et al., ‘Energy Service Companies Market in Europe - Status Report 2010’, Institute for Environment and Sustainability. 2010. Publications Office of the European Union. pp.63-66. Available from URL: http://publications.jrc.ec.europa.eu/repository/handle/111111111/15108

· Rezessy S. et al. ‘Energy Service Companies in Europe: Assembling the Puzzle. Preliminary Analysis of the Results to Date from the First European ESCO Database’, Central European University. Budapest.Hungary. Accessed: 2011, February 7. http://re.jrc.ec.europa.eu/energyefficiency/pdf/publications/ECEEE%202005%20paper%204%20209%20final.pdf