ZURICH, Sept. 12, 2000—Electrowatt-Ekono Oy and Private Energy Market Fund Oy have established a jointly owned company, Inesco Oy, specializing in implementing energy-saving investment projects. Inesco Oy started operations on September 1, 2000. Eero Siitonen, M.Sc.(Eng.) has been appointed Managing Director of the new company.

Inesco Oy assumes responsibility for planning, contracting and financing services for energy-saving projects, and for maintaining the technical operating reliability of new systems. There will be no need for the client to make capital investments or use its own operative resources. The client will pay for the total project cost from savings in the cost of purchased energy.

The business idea originates from Canada and the United States, where 90 percent of energy-saving investment projects are implemented according to the ESCO concept (Energy Service Company). This practice is now spreading to Europe. For example the European Commission’s recent operating plan intends to issue directives for supporting and developing the ESCO concept. The intention to develop the ESCO concept is also noted in the draft for the new national energy-saving program in Finland. Inesco Oy is a pioneer in this sector in Finland.

Major clients include industrial companies and the public and private service sectors in Finland and other Nordic countries. The industry is interested in the ESCO concept, because it speeds up the implementation of energy-saving investments and reduces emissions of greenhouse gases as required by the Kyoto Protocol.

Inesco Oy’s activities also support the energy review procedure coordinated by the Information Centre for Energy Efficiency and Renewable Energy Sources, Motiva, promoting investments found to be profitable in the course of the review process. Motiva has also been involved in developing and promoting the use of the ESCO concept in Finland. The Ministry for Foreign Affairs has supported the establishment of similar practices in neighboring countries, where there is considerable scope for improved energy efficiency.