ESCOs for residential buildings: market situation in the European Union and policy recommendations

Despite the large economic energy saving potential in the EU the energy service companies (ESCOs) market for residential buildings is much less developed than in other demand sectors (e.g. the industry or public/service sectors). Given the existing situation, energy policy experts and researchers appear generally quite sceptic about the possibility of a real and significant development in the near future. Besides sector cross-cutting barriers (e.g. low level of energy prices, lack of information and awareness, lack of appropriate forms of finance) there are indeed specific barriers which make a large scale application of the ESCO model for residential buildings particularly difficult. However encouraging development trends are being registered in specific market segments where
the possibility of aggregating the demand or exploiting good relationships with customers have created interesting investment opportunities for ESCOs. This paper aims to analyse the present situation for the development of the ESCO market in the residential sector in Europe. Specific market barriers and some existing energy policies affecting this market are also described together with a series of interesting case studies highlighting promising development trends. Finally some recommendations for policy makers on how these trends could be further stimulated are formulated.

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Sectors: Cross cutting, ESCO, Finance

Country / Region: European Union

Tags: , , , , , , , , ,

In 1 user collection: Investment, Finance & Risk Management

Knowledge Object: Publication / Report

Published by: ECEE