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As the world continues to grapple with climate change and its devastating effects, the need to reduce carbon emissions and increase energy efficiency has become more urgent than ever. In this regard, Guaranteed Energy Savings Performance (GESP) contracting has emerged as a promising solution for organizations looking to save energy costs while also reducing their carbon footprint.

So, what is GESP?

Simply put, GESP is a contractual agreement between an organization and an energy services company (ESCO) in which the ESCO guarantees that a certain amount of energy savings will be achieved. This model is commonly used in public sector organizations such as schools, hospitals, and government buildings, where energy bills can be a significant expense.

Under this model, the ESCO will conduct an initial energy audit of the facility to identify potential energy savings opportunities. This may include retrofitting lighting systems, upgrading HVAC systems, or installing energy-efficient equipment. The ESCO will then develop a comprehensive energy conservation plan that outlines the measures to be implemented, costs and energy savings projections.

The ESCO bears the upfront costs of implementing the energy efficiency measures, and the organization pays them back through the guaranteed energy savings over a specified period of time – typically between 5 to 15 years. If the expected energy savings are not achieved, the ESCO is responsible for covering the shortfall.

Benefits of GESP Contracting:

1. Cost Savings: GESP contracting enables organizations to reduce their energy bills by up to 40%, resulting in significant cost savings over the long term.

2. Reduced Carbon Footprint: By implementing energy-efficient measures, organizations can reduce their carbon footprint, contributing to the fight against climate change.

3. Improved Facility Operations: GESP contracting aims to optimize the performance of a facility`s mechanical and electrical systems, resulting in better comfort levels, indoor air quality, and reduced maintenance requirements.

4. No Upfront Costs: As mentioned earlier, the ESCO bears the upfront costs of implementing the energy efficiency measures, relieving organizations of the financial burden of upgrading their facilities.

In conclusion, GESP contracting is an effective way for organizations to reduce their energy costs while also contributing to a more sustainable future. By partnering with an experienced ESCO, organizations can achieve significant energy savings, improve facility operations, and reduce their carbon footprint.