Improving energy efficiency is one of the most important pillars of a sustainable energy policy and a key component of climate change mitigation strategies. The private sector, including energy service companies (ESCOs) can play a critical role in improving energy efficiency at the market level. ESCOs have the necessary know-how to provide turnkey services and solutions achieving significant energy cost reductions while addressing various market related barriers on the ground. ESCOs can handle projects, manage or mobilize financial resources, undertake installation and maintenance work as well as
collaborate with other market players. When providing Energy Performance Contracting (EPC), ESCOs share the unique characteristic to assume performance risks by linking their compensation to the performance of their implemented projects, thus incentivising themselves to deliver savings-oriented solutions.
Sectors: Cross cutting, ESCO
Country / Region: European UnionTags: climate change, climate change mitigation, energy, energy efficiency, market players, mitigation strategies, performance risks, private sector, projects, risks
Knowledge Object: Web Resource
Published by: Europe JRC