Why Energy Services?
The building stock is the largest energy consumer in Europe. With a share of 40 percent (2012) of the total final energy consumption, buildings are responsible for 38 percent of the EU’s CO2 emissions. In order to achieve the European CO2 reduction and energy efficiency targets, the modernisation rate in the building stock has to be increased significantly to overcome the prevailing modernisation backlog. As public budgets are strained in many countries, it is crucial that private capital is activated with advanced energy services to implement the necessary energy saving measures (ESM).
Energy Performance Contracting (EPC) is an energy service model which has been applied successfully in the modernisation of mostly public buildings since 20 years. A strong roll-out of EPC beyond the public sector has so far been prevented mainly because of two unresolved issues: the split incentives dilemma in rented facilities, and the lack of sufficiently flexible contract models.
Within guarantEE, 14 experienced partners will develop innovative business and financing models for performance-based ESCO projects. For rented facilities, the aim is to develop and test solutions adequately sharing costs and benefits between user, building owner and ESCO (triple-win approach).
With a special focus on private sector building owners, EPC contract variants providing enhanced flexibility will be developed.
Market stakeholders will be intensively involved in the analysis of current barriers and the definition of adequate contractual solutions.
The innovative energy service models are to be tested in pilot projects, in which the building owners will receive support from experienced EPC facilitators.