Energy efficiency with no CAPEX: we are paid from the power that stops being wasted
PT. The M&E Contractor delivers energy efficiency as an Energy Service Company (ESCO): we audit, retrofit the systems that waste the most, HVAC first, and are paid out of the saving. You spend no capital.
Energy efficiency, sold as an outcome, not as hardware.
An ordinary contractor is paid to install equipment. As an ESCO, TMEC is paid out of the energy actually saved once that equipment is installed and genuinely working. The difference is not semantic: because our payment depends on the measured saving, the risk moves from you to us.
In Indonesian regulation this is an Usaha Jasa Konservasi Energi. In practice it means buildings and plants can cut their electricity bill without first finding a capital budget.
Three ways to fund it.
The payment scheme is chosen from your situation, not the other way round. The core stays the same: you pay from the saving, not from a capital budget.
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OPEX scheme, no CAPEX
You spend no capital. TMEC funds the audit, the equipment, and the installation, and is paid out of the energy the retrofit stops wasting. The cost of efficiency moves from the capital budget to an operating cost that is by construction smaller than the bill it replaces.
- No upfront capital outlay for chillers, AHUs, or cooling tower fans
- Payment is drawn from the measured saving, not from your cash
- Equipment performance risk sits with TMEC through the contract term, not with you
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Guaranteed performance
For buildings that finance through a bank, TMEC guarantees the energy performance level and covers the shortfall if the measured target is missed. The guarantee attaches to a measured number, not to a promise.
- Fits where financing is already available from a bank or own budget
- The performance level is guaranteed and verified against an agreed protocol
- Any shortfall against the target is covered by TMEC per the contract
Where the energy is wasted, and what gets retrofitted.
In an air-conditioned building or plant, HVAC is the largest electrical load. That is why the first three systems below are almost always looked at first.
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Chiller Retrofit
In an air-conditioned building the chiller is the single largest electrical load. An aging chiller running far from its efficient point is where the largest, fastest-visible saving sits.
- Replacing aging chillers with high-efficiency variable-speed (VSD) units, oil-free magnetic-bearing types included
- Chiller sequencing so each unit runs near its efficient point rather than part-loaded
- Condenser- and chilled-water temperature reset that follows the real load, not one fixed setpoint
- Conversion to variable primary flow on the chilled-water distribution
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AHU & Fan Retrofit
An Air Handling Unit running flat out around the clock wastes fan power and cooling on rooms that are empty. Fan power falls with the cube of speed, so a small reduction in speed removes a large share of the energy.
- Replacing AHU fans and their motors with EC fans or variable-speed (VSD) drives
- Demand-controlled ventilation, so fresh air is supplied when people are present rather than all hours
- Static-pressure reset and coil cleaning to restore heat transfer
- Heat recovery on the exhaust stream where the latent load is high
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Cooling Tower Fan Retrofit
Cooling tower fans are a commonly overlooked waste point: an old motor runs flat out to hold a condenser-water temperature that could in fact float. This is where fan selection and speed control feed straight back into chiller efficiency.
- Replacing cooling-tower fans and motors with high-efficiency axial fans or direct-drive EC fans
- Variable-speed (VSD) control that follows the heat-rejection load rather than cycling on and off
- Tower approach optimisation so the chiller receives condenser water as cold as is reasonable
- Water distribution repair and fill replacement to restore capacity
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Pumps, BMS & Controls
A large share of the saving needs no major replacement, only making the system stop working when it is not needed. Retro-commissioning finds the wrong setpoints and schedules before any equipment is bought.
- Variable-speed (VSD) drives on chilled-water and condenser-water pumps
- Retro-commissioning: rechecking setpoints, schedules, and interlocks that have drifted from design
- Building Management System optimisation and trend logging so drift is caught early
- Lighting retrofit to LED with occupancy and daylight controls where it fits
How an ESCO project runs.
Four steps. What separates an ESCO from an ordinary retrofit lives in the first and the last: the saving is measured up front as a baseline, and proven at the end with the same protocol.
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Energy audit
Real consumption is measured on site, not assumed from a datasheet. We map where the energy goes and which systems waste the most, then set the baseline that every saving figure is later measured against.
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Proposal & guarantee
A list of energy conservation measures, the OPEX payment scheme that fits, and the performance level that is guaranteed. This is where the risk transfers: what is promised is the guarantee structure, and the number comes from the measured baseline.
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Retrofit & install
The retrofit is installed in a building or plant that keeps operating, sequenced from your schedule. Every task touching a live system has a written rollback plan before it starts.
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Measurement & verification
The saving is proven, not claimed. Measurement and verification follow the IPMVP protocol: post-retrofit consumption is compared against the adjusted baseline, so payment rests on energy actually avoided.
Codes, standards, and protocols.
A saving only means something if the way it is measured can be defended. Verification follows IPMVP, and the work rests on the Indonesian energy conservation framework.
| Energy conservation | Government Regulation PP 33/2023 on Energy Conservation |
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| Energy management | SNI ISO 50001, ESDM regulation on energy management |
| Measurement & verification | IPMVP (International Performance Measurement and Verification Protocol) |
| HVAC energy conservation | SNI 6390 air conditioning systems |
| Building envelope | SNI 6389 envelope energy conservation |
| Lighting | SNI 6197 lighting energy conservation |
| Competency | Certified energy auditor and energy manager |
Questions we are asked
- What is an ESCO, and how is it different from an ordinary M&E contractor?
- An ESCO (Energy Service Company), in Indonesian regulation an Usaha Jasa Konservasi Energi, sells an outcome, not equipment. An ordinary M&E contractor is paid to install hardware; an ESCO is paid out of the energy saved after that hardware is installed and working. So the ESCO shares the risk: if the saving is not measured, neither is the payment. TMEC does both, and on an ESCO offer our interests and yours point the same way.
- How can there be no CAPEX? Who pays for the equipment?
- On a shared-savings scheme TMEC funds the audit, the equipment, and the installation. You spend no capital. Payment comes from the gap between your old energy bill and your new one, split on an agreed share for the contract term. When the contract ends, the whole saving is yours. For buildings that prefer to finance through a bank, a guaranteed-performance scheme is available instead.
- Which systems save the most?
- In almost every air-conditioned building and plant the HVAC system is the largest electrical load, so that is where the largest saving is: the chiller, the AHUs, and the cooling tower fans. An aging chiller far from its efficient point, an AHU running flat out over an empty room, and a tower fan with no speed control are the three places we almost always look first. Pumps, BMS controls, and lighting come after.
- Why is there no saving percentage on this page?
- Because an honest saving figure only comes from a baseline measured in your building, not from an industry average on a brochure. That is the point of the ESCO model: the saving is verified with the IPMVP protocol after the retrofit, and that is what gets paid. A number quoted before the audit is a guess, and we do not build a contract on a guess. What we set out up front is the guarantee structure and which systems waste the energy.
- Can the retrofit be done without shutting the building down?
- Yes, and it is the most common situation. The work sequence is built from your operating schedule: night windows, weekends, or a planned shutdown. Every task touching a live system has a written rollback plan before it starts, so the building stays cool and stays running through the changeover.
- Does TMEC also handle the mandatory energy audit and its reporting?
- Yes. The energy audit is the first step of every ESCO project, and for large energy users energy management is required by the energy conservation regulation. The audit is done by a certified energy auditor, follows the SNI ISO 50001 framework, and its output serves both as the retrofit basis and as material for compliance reporting.
Energy efficiency is PT. The M&E Contractor’s core offer, but not its only one. The same retrofits are delivered by the team that also installs the full mechanical and electrical scope, inside a TCC EPC contract or standalone.
Tell us about the project.
Send the outline: location, approximate area, process type, and target production start. We will come back with the questions that need answering before any number means anything.