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ENERGY SERVICE CONTRACT
(LOAN AGREEMENT)

One of the key activities of MKS Group is the implementation of energy service contracts (generation equipment lease agreements) as a single comprehensive integrator. In the current economic realities energy service contract is the most beneficial and simple mechanism of interaction for the consumer to obtain real savings in energy costs with minimal risks. Key message is that all capital investments for the construction of a turnkey mini-thermal power plant, all risks, and operating costs for the operation of this facility during the term of the energy service contract shall be borne by the contractor – the MKS Group. The customer is guaranteed to receive a discount on electricity and heat without financial investments on his part.

ENERGY COMPLEX
FOR RENT


An energy service contract (loan agreement) - is a format of turnkey implementation of small-scale power projects (mini-CHPs) by the contractor (MKS Group) at its own expense with further economic effect for the consumer, who is guaranteed to receive a discount on electricity and heat immediately after the commissioning of the facility without any financial investment on his part.

Mechanism of energy service contract implementation - lease of generating equipment

Energy service contract (generating equipment loan agreement) is implemented in the form of a loan agreement for complete generating equipment of mini-CHPs. The lessor (the MKS Group) rents out mini-thermal power plants. The lessee (consumer) pays regular rental payments calculated based on a discount against the current tariffs of energy supply companies. At the same time, during the entire term of the loan agreement (energy service contract) the MKS Group performs maintenance and operation of the generating facility using its own resources.

Conditions for implementation of the energy service contract (loan agreement)

availability of gaseous fuel of the required quality and quantity;

the need to optimize energy supply costs;

the need to improve the reliability and energy efficiency of the enterprise.

How is an energy service contract (loan agreement) concluded?

The offer under an energy service contract (loan agreement) is realized NOT within the framework of an energy saving contract (Federal Law No. 261-FZ dated 23.11.2009 "On Energy Saving and Energy Efficiency Improvement and on Amendments to Certain Legislative Acts of the Russian Federation"), does not restrict the customer in consumption, is a more flexible scheme and implies obtaining economic effect immediately after the generation facility is put into operation.

How is an energy service contract concluded?

1

Before concluding an energy service contract (loan agreement), the MKS Group collects basic background information on the customer's facility (consumption statistics, hourly load profiles, prices for consumed energy resources);

2

A brief feasibility study with determination of economic effect for the consumer is formed and a preliminary financial and economic model for the contractor is calculated;

3

A technical and economic proposal for the customer to conclude an energy service contract (loan agreement) is prepared, with parameters agreed with the customer on the type and number of GPUs, generated volumes of electricity and heat, discounts, etc.

4

The loan agreement is formed, approved, and signed, and implementation of the energy service contract begins.

Stages of implementation of the energy service contract (loan agreement)

Stage 1 

Turnkey construction of a mini-CHP at the expense of the MKS Group, including engineering networks and commissioning

Approximate realization period - 10‑12 months

Stage 2

Maintenance, dispatching and operation of the mini-CHP throughout the entire term of the energy service contract (agreement)

Approximate period before overhaul of mini-CHPs - from 6 to 10 years depending on the type of GPU

Planning
work
Supply of main
and auxiliary
equipment
Production of
block modules
Execution of
construction and
installation works
Performing
commissioning
works
Putting
the facility into operation

Complete block-module 4.3 MW

In 2019, the MKS Group was the first in Russia to develop a 4.3 MW block module based on the largest-sized gas piston engines. This development was a milestone in the history of decentralized energy supply in the country.

12.08 x 16.59 m
(dimensions with installed equipment)

8.73 m
(total height of the structure)

Main advantages of implementing an energy service contract project for the Consumer

Implementation of the project reduces energy costs: the consumer receives a guaranteed discount on electricity and heat.

There are no capital expenditures for project implementation on the part of the consumer, and the economic effect is achieved immediately after the facility is put into operation.

All works on construction of the mini‑CHP and its maintenance are performed by the MKS Group, the consumer only pays the rental fee.

Implementation of the project increases the reliability of power supply to the enterprise by connecting a modern generating facility (mini‑CHP).

There are no risks for the consumer to build a mini‑CHP and its maintenance. The MKS Group regulates all issues with supervisory authorities, natural monopolies and networks.

The consumer has an opportunity to promptly relocate the power units of the mini-CHP made according to the technology of block-modular design.

Service maintenance, remote dispatching and monitoring of the energy facility is performed by the MKS Group by its own forces during the entire term of the energy service contract.

The MKS Group regulates all issues with supervisory authorities, natural monopolies, and networks.

Implemented and launched power complexes of block-modular design by the MKS Group of Companies

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