The Energy Savings Agreement (ESA)
The ESA is not as elaborate as a MESA, but has many of its desirable features, including the all-important performance-based remuneration.

Suitability:
This is suitable for those customers who have a few clearly identified measures to be implemented in their facility, which might have an annual energy bill between Rs. 50 lakhs and Rs. 200 lakhs. The ESA has a number of features of the MESA, but is a much simpler document.

Benefits:

1. All project related factors such as savings, costs, Baseline energy usage, measurement and verification protocols etc. are clearly defined in just one Report at the time of entering into the Agreement.
2. It ensures that the measures will perform well because of the performance-based remuneration for SUDNYA.
3. All costs incurred for the projects ultimately form a part of the project cost and are covered by SUDNYA’s Minimum Savings Guarantee. This comforts customers when a Measure incurs considerable soft costs on study, analysis and engineering in relation to the hard costs of equipment and implementation work.
4. It aligns SUDNYA’s interests with the customer’s interests, and ensures that they share the common long-term objective of maximising the reduction of energy costs.
5. It facilitates financial planning as an Energy Master Plan is drawn up early in the programme and forms the basis of the implementation plan.

Mechanism:
An Investment Grade Report is prepared before entering into an ESA usually through a Planning Agreement. This Report provides all the information necessary to decide whether or not the Measure should be implemented. The ESA defines the roles that SUDNYA as well as the customer would play, and how SUDNYA would be remunerated. It also defines the Minimum Savings Guarantee extended by SUDNYA.