Energy Service Market in the EU

The European Union has committed to an economy based on energy efficiency as the first fuel, and has been progressing towards sustainable energy and climate change mitigation strategies via the combination of direct regulations and supporting market actors. Setting out the 2030 climate and energy framework, includes EU-wide targets, policy objectives, long-term goals, new and improved policies, as well as provisions for stepping-up Member States’ efforts require measures and actions on all levels and by all market stakeholders. On this road, the private sector, including energy service markets can play a critical role. Energy service companies (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 (EnPC), 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.