Energy Contracting – also labeled as ESCo or Energy Service (ES) – is a many times proven DSM instrument to implement performance-based energy efficiency measures for lighting, HVAC-technologies or even comprehensive refurbishment of buildings. An Energy Service Company (ESCo) takes over the technical and commercial implementation and operation risks and has to guarantee for it’s cost and results. ESCo services are also well suited to implement innovative energy technologies and renewable energy systems.
In this Task ESCo experts from around the world joined forces to contribute to the market development of performance-based Energy Services by:
1. establishing an Energy Services Expert Platform,
2. designing, elaborating and testing innovative energy services and financing models and to publish them in a series of manuals,
3. developing and following up on country specific activities for implementing energy services in the market with a focus on selected market segments and
4. offering expertise and initiating joint projects and services with other international organizations (e.g., presentations, coaching and training).
The success of further increasing energy efficiency in all sectors of consumption plays a vital role in coping with the challenges of our common energy future. Avoiding energy consumption by increasing end-use efficiency is a highly effective way to meet all three key targets of energy policies: Security of supply, affordable costs of energy services and environmental soundness.
But what are the appropriate instruments to bring energy efficiency to the end-user? One of the most urgent energy policy and energy economics challenges continues to be the search for suitable “tools” to execute energy conservation potentials. The level of success is far from satisfactory as the continuous increase in final energy consumption reveals. Now and for the foreseeable future there is an urgent need to conclude and support all suitable political, regulatory and market based instruments for the implementation of Energy Efficiency and Renewables.
The ESCo industry is an expanding business throughout the world contributing to the improvement of energy efficiency, control of energy costs and reduction of greenhouse gas and other emissions. The models of offering these services can get various forms like Energy Supply Contracting (ESC) or Energy Performance Contracting (EPC) resulting in diverse contract models and financing arrangements. Our view of the basic features of “real” Energy-Contracting projects can be downloaded here: IEA-DSM-Task16_Task-Flyer_Sept2013.pdf
What is Energy Contracting? An integrated service with results guaranteed.
Task 16 serves as a research and expert platform, while national experts carry out individual national implementation activities. The results of Task 16 are discussed and disseminated in a series of stakeholder workshops, publications, presentations at conferences and workshops.
Energy contracting activities have been started in different segments of energy consumption in different countries. White areas on the market map are gradually being covered by existing and new enterprises. Nevertheless Energy Contracting still is a complex product, which can not be sold or procured easily in the markets. As it is the case with energy efficiency in general. In many other countries markets are still immature and in a developing stage. There are many reasons to take the work of Task XVI further on the way towards developed energy service markets:
Task 16 has received considerable interest in its previous work, expressed in a number of invitations to conferences and workshops to more than ten IEA as well as non IEA countries. Also the task work itself benefits from feedback on its publications. This international and national dissemination activity of IEA DSM work should be taken further and will also enhance the visibility of the DSM programme as a whole.
The goals of the Task 16-extension are, to contribute to the development and implementation of innovative and competitive energy efficiency and demand response services. Thus we want to
The underlying goal is to increase understanding of Energy-Contracting as a tool to implement energy efficiency projects: Pros and cons, potentials, limits and added values of ESCo products in comparison to in-house implementation.
The benefits for the participating countries and for the DSM agreement will encompass:
Last but not least networking with innovative ESCo market players may be considered as an added value.
The Think Tank has worked on a variety of topics which have led to the following key publications:
As of October 2013, 15 Energy Service Expert Platform Stakeholder workshops were held in the participating countries.
National Implementation Activities were carried out according to the individual plans of country experts and activities were reported and reviewed at the platform meetings. Ongoing activities can be integrated into the NIA’s.
Phase 1: July 2006 – June 2009
Phase 2: July 2012 – June 2015