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Posts Tagged ‘capital contribution’

Capital contributions, the payments made by ESCOs to developers in exchange for long-term concession agreements, are a hangover from the days when everyone thought onsite generation would be highly profitable.

We’ve since discovered that it isn’t as lucrative as expected. Nevertheless developers continue to demand these upfront payments, leading to higher standing charges, longer contracts and unhappy residents. Isn’t it time for the practice to stop?

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