Distributed Energy (DE) is a fundamental part of the design of most low or zero carbon energy schemes. Typically, a developer will commission a scheme, usually with an energy services company (ESCO). The ESCO will build, finance and operate the scheme and assume financial and operational risk. The ESCO agrees to make the required energy services available (usually involving the supply of thermal energy as well as electricity) by means of a long-term contract between it and the developer, or an appointed management company. Under that contract, the ESCO undertakes to offer the energy services to individuals on the site on pre-set terms, including price benchmarking.
Note that the ESCO may negotiate for a capital contribution from the developer, possibly based on any infrastructure cost save by the developer as a result of the on-site low/zero carbon heat and power provision.
