Short films about EPC
What is Energy Performance Contracting? How does it work? And could it work for me? The partners in the EESI 2020 project (Germany, Austria, Czech Republic, Belgium, Bulgaria, Croatia, Spain (Catalonia), Norway and Ireland) created 5-min. films in national languages to explain the idea of Energy Performance Contracting to potential clients.
You will find all short films on: http://eesi2020.eu/videos-2/
EPC is a proven model for modernizing mostly public buildings by ESCOs with guaranteed energy and cost savings. Nevertheless, a broad roll-out of EPC is being prevented mainly because of two unresolved issues: the split incentives dilemma and the lack of adequately flexible contract models. The "guarantEE" project, which is funded under the Horizon 2020 programme, will address prevailing barriers to EPC in a team of 14 experienced partners, covering large parts of Europe in a mix of advanced and emerging ESCO markets.
Starting in April 2016, the guarantEE project, which is being co-ordinated by the Berlin Energy Agency and with as Belgian partner Factor4, will develop innovative business and financing models aiming to overcome the split incentives dilemma in performance based ESCO projects. This will be done by looking for ways to adequately share costs and benefits between user, building owner and ESCO in a triple-win approach, thus opening up new project opportunities. Furthermore, EPC contract variants will be elaborated and tested, addressing the need for enhanced flexibility (e.g. exit clauses, simplified M&V). The target groups are public and - especially in advanced EPC markets - private sector clients.
The developed models will be applied in pilot projects involving private and public building owners. Furthermore. guarantEE will support market development by providing standards, an online EPC pre-check, best practices (continuation of the EESI 2020 database), EPC information and project facilitation services. Broad dissemination activities, including the European Energy Service Award, will maximise the project visibility. The project website is scheduled to go online in May 2016.
The guarantEE project aims to unlock additional EPC project opportunities, contribute to standardisation, and provide political advice and steps towards a common energy service market in Europe.
You may register already now for the guarantEE newsletter service by writing an eMail to email@example.com
Condensing the core experiences within EESI 2020, a concise position paper has been elaborated and published, which is addressed at EU level stakeholders and multipliers in the context of energy services.
Energy performance contracts aim to increase confidence among building owners and investors that the energy-saving measures in which they invest will, in practice and with guarantee, deliver the expected energy and cost savings over the lifetime of the contract.
Drawing on the experience of practitioners across 9 European regions the EESI 2020 project produced identified main barriers to the Energy Performance Contracting (EPC) market in Europe.
There are still inhibiting factors for EPC on the regulatory level, the most urgent one being the Eurostat guidance note on EPC, which mostly rules out off-balance financing options in EPC.
A central message is that a large part of the non-technical barriers to EPC can successfully be overcome through professional guidance from qualified Project Facilitators who understand the complexity of the EPC model and who can develop good communications and build trust among the parties to the contract.
From the experiences of the partners in the EESI 2020 project the following main recommendations are now presented:
- Create new ways to work within and around the recent Eurostat ruling which determines that the capital expenditure undertaken by an energy services company "shall be recorded on the government balance sheet"
- Recognise the role of Project Facilitators in the realisation of specific EPC projects, and train more Project Facilitators at regional level
- Encourage programmes aimed at improving national frameworks for EPC and financially supporting the EPC clients, as for example the National Energy Services Framework in Ireland and the BAFA programme in Germany
The project "European Energy Service Initiative towards the EU 2020 energy saving targets" (EESI 2020), which was implemented between 2013 and 2016 by a consortium of European energy agencies or experts with support of the European Commission's Intelligent Energy Europe Programme, has been addressing ways to improve the impact of Energy Performance Contracting (EPC) in 9 European regions.
To improve the sustainability and the scaling up of the business model, EPC schemes on the regional level were supported by creating task forces, by including EPC in regional energy plans and by assisting pilot projects. In nine metropolitan regions, a total of 27 EPC pilot projects have been realised within EESI 2020, with cumulative investments in energy efficiency of more than 26 M€, leading to average energy cost savings more than 30%, reducing CO2 emissions by 16.000 tons per year.
Additionally EESI 2020 promoted the role of EPC facilitators through dedicated capacity building measures: Facilitation materials in 9 languages have been elaborated, including a project database with over 50 best practices, a detailed facilitator guideline and training modules. Furthermore, some 800 energy stakeholders have participated in EPC facilitator trainings within the project, broadening the available expertise to spark further growth in the EPC markets.
With the European Energy Service Award, successful projects, promoters and providers of energy services - many of them in the context of EPC - received public recognition within high-level awarding events in Brussels 2014 and 2015.
In the evaluation of the project activities and especially the pilot projects, barriers preventing the stronger uptake of EPC have been identified: High complexity of EPC, trust in the ESCO services, but also a cultural barrier persisting between public building owners and private ESCOs. Furthermore, EPC is currently focussed too much on public buildings, while for private building owners adapted business models still need to be developed.
The Eurostat Guidance Note on EPC published in 2015, which restricts off-balance accounting of EPC projects, is seen clearly counter-productive for EPC especially in less mature markets, as the bureaucratic burden for starting projects is being increased by the ruling.
However, the EESI 2020 project also identified and further developed success factors for EPC. Through qualified EPC facilitation, many of the non-technical barriers can be tackled successfully. An experienced neutral facilitator can support EPC clients in identifying new EPC projects, provide his expertise in the complex procurement process and help bridging the cultural divide between the public and the private side. This will ultimately lead to increased experience, smother management, lower transaction costs and thus a stronger market development on the demand side.
Energy can be a major cost factor in the industry. That's why it is financially interesting for industrial companies to realise energy saving measures. To support companies with their energy saving investments, the Flemish government actively promotes ESCOs or 'energy service companies'.
In a video, broadcasted by Kanaal Z, Annemie Turtelboom (Minister for energy) and Joachim Castelain (Flemish administration, Innover) clarify the main principles an advantages of an ESCO. Thomas Seynaeve (CEO Seyntex) and Sven Wuyts (Factor4) explain how an EPC-project is in practice realised in the industrial company 'Seyntex'.
Watch the short video (4') below or follow this link.
An important result of EESI 2020 is the development of a systematic guide for facilitators. It provides in a modular structure all necessary steps of project facilitation
Although Energy Performance Contracting (EPC) is an established energy service model since many years, the significance of experienced facilitators for the success of EPC projects has long been underestimated.
By supporting a project's initial set-up, by assessing, its feasibility, and by communicating the concept towards decision makers, the facilitator is crucial for putting the train on track. Many EPC projects which never reached the phase of implementation, have failed in this initial phase due to a lack of knowledge about and arguments in favour of EPC. Furthermore, facilitators guide their client through the procurement of the EPC-project, which requires sound knowledge of the process, the right handling of the tools, such as contract, baseline and tender documents, and the organisational requirements of EPC.
An important result of EESI 2020 was the development of a systematic guide for facilitators addressing the facilitator's responsibilities in the course of an EPC-project. It supports all types of interested parties in undertaking developing steps towards EPC-projects, no matter if they are energy auditors, energy managers within public bodies or companies, who are aiming on initiating an EPC-project or prospective EPC-facilitators, who intend to serve with the whole procurement process of an EPC-project.
With its modular structure, the guideline allows facilitators to support the client in the whole life cycle of the project or only in selected phases:
- STEP 1 How to identify potential EPC project opportunities
- STEP 2 How to Present EPC Projects to Customers
- STEP 3 Added Value of EPC compared to In-House Solutions
- STEP 4 Procurement of EPC: Tendering and Awarding of Contract
- STEP 5 The EPC Contract
- STEP 6 Financing of EPC-projects
Within the EESI 2020 project, the consortium partners trained in more than 30 training events a total of almost 800 consultants facilitators on the application of the EPC facilitator guideline. The newly trained facilitators can now start supporting additional clients and become multipliers for EPC in Europe.
Watch also the video about EPC-facilitators.
Since 2010, the Belgian province of Flemish Brabant supported the realization of energy savings by its municipalities via conventional energy audit and energy management programs. Confirming observations by many public authorities in other member states, the decision makers of the province concluded in 2013 that in reality this conventional approach generated almost no energy saving results. It was decided to create a Helpdesk Energy Management to take the role of EPC market facilitator and to develop EPC projects for the municipal building stocks. As the municipalities do not have a long term action plan and the required financial resources to implement energy efficiency measures, the province coaches municipalities towards energy performance contracting.
Tie Roefs, Vice-governor of Province of Flemish Brabant "Via an innovative EPC coaching trajectory, the province successfully guided six municipalities towards the implementation of an EPC-project. Nine new municipalities recently subscribed for our second trajectory."
Supported by the EPC- and change management experts of EY and Factor4, the officials of the province started with a careful analysis of the successes and failures of previous EPC-development tracks in Belgium and abroad. Based on this analysis, and making use of modern change management and communication techniques, the province launched an innovative EPC coaching trajectory composed out of 4 steps.
In the first step, municipalities followed an EPC-training. Before being allowed to the next step, they had to sign a Letter of Intent engaging them to actively participate in the rest of the process. If they would drop out, lack participation, or just drop out of the process, they are obliged to realize a concrete energy savings target through an energy management action plan
Next, experts of the Helpdesk Energy Management of the province executed an EPC-pre-feasibility study for the municipal buildings, including collection of basic building data (energy consumption, technical condition of the building, ...) and inventory of possible energy saving measures. All the necessary data were collected by the municipalities themselves, and transferred in data sheets provided by the helpdesk. After the data collection and pre-feasibility, other strategic aspects are discussed with the municipality to develop a tailor made building master plan (demographic trends and needs, multiple use and concersion of existing buildings, occupation level).
The conclusions are discussed in an interactive workshop with the EPC-experts and municipal stakeholders. In parallel, in order to also convince the technical staff, the experts conducted 3 'spot advices' (a walk-trough audit with the building manager) to show the energy and non-energy saving potential that hasn't been taken care of, and talk about their jobs. Confronted with potentials, most of the building managers admit to be aware of the potentials, but regret having not enough time to handle all of these small and big projects. The combination of the pre-feasibility workshop and spot advices resulted in an EPC-pre-feasibility report approved by all the officials as well as by the politicians.
The major objective of this phase was nor 'technical' or 'theoretical', but rather 'psychological', responding to 'what's in it for me?' for every stakeholder.
In the third step, all the stakeholders of at least 3 municipalities (i.e. the Mayor, deputy mayors, technical and environmental team) participated in a 'JAM-session' where, after a short recapitulation of the basics of EPC, they were divided in 3 parallel workshops: financial, operational and juridical. This allowed everyone to ask more and more complex questions about their expertise to an expert specialized in this aspect of EPC. The workshops ended with a networking lunch enabling the politicians, officials and experts to connect more informally and to increase trust of all stakeholders furthermore.
During interactive 'JAM-sessions', EPC-experts answered the last remaining questions of the municipal officials
Based on the conclusions of the prefeasibility report and the 'JAM-session', the municipality agrees on the scope of the EPC-project and the assignment of an EPC-facilitator.
In the last step of the EPC coaching trajectory the municipalities procured an EPC-facilitator using procurement documents developed by the province in collaboration with EPC-experts.
The first EPC trajectory was a big success. Of the eight municipalities that started the program six (75%) will go for EPC. This is a big success as previous experiences with local EPC-development programs based on a more conventional approach (e.g. classic workshops, informative meetings etc.) showed that only 10-20% of the municipalities would go for EPC.
The success of the first trajectory motivated nine new municipalities to subscribe for the recently launched trajectory in 2016.
Old street lighting systems can account for 30-50% of municipalities' total electricity consumption. Yet, current technology offers 30-70% energy saving potential. The EU-project "Streetlight-EPC" creates demand and supply of street lighting refurbishment by means of EPC projects.
These savings potentials have been recognised and incorporated into European policy: EU Regulation 245/2009 sets phasing out requirements for nearly 80 % of all currently used lamps types between 2012 and 2017. This means that these lamp types will no longer be available on the market for purchase.
Energy Performance Contracting (EPC) offers municipalities an innovative, but still under-used solution towards energy efficient street lighting, without having to pay upfront and with energy savings guarantees. This constitutes a good "learning and testing ground" for EPC due to its lower technical and economic complexity compared to building-related EPC. Furthermore, the recent market introduction of LED technology offers high energy and cost savings with comparatively short pay-back times.
The European project "Streetlight-EPC" is setting up regional EPC facilitation services ("helpdesks") which are providing one-to-one support to both municipalities and SMEs as potential ESCOs in 9 European regions. The project partners aim to implement 36 EPC street lighting projects. This will help create knowledge and trust in both LED technologies and the EPC model.
You can find more information on Streetlight-EPC project on: www.streetlight-epc.eu
In the context of EESI 2020, the largest European Best Practice Database for successful EPC projects has been elaborated. The database is equipped with a comfortable search engine, allowing to identify projects by choosing combinations of 12 different criteria.
The projects presented come from various sources. Several examples are from earlier EU projects, such as the Transparense project. Several winners of the European Energy Service Award are also included. Finally, almost all of the 27 new pilot projects which have been initiated in EESI 2020 are to be found in the database.
This EPC database is targeted both at facilitators (consultants, energy agencies etc.) and final customers (i. e. predominantly decision makers and officials of public administrations/city governments). It provides a single point of access to high quality EPC reference, guidance and marketing information.
With more than 50 projects from 14 European countries, the database is a valuable data source which will be further maintained and enlarged in the context of the new Horizon 2020 project "guarantEE" (see other article).
Examples of best practices:
|Enebakk Municipality – Norway|
|Rudolfinum Prague - Czech Republic|
|Seyntex industry - Belgium|
|Berlin: Pool 27 - Germany|
Link to Best Practice Database: here
European EPC markets overview conducted
The Transparense market overview consisted of an online database of European EPC markets, built using the responses to two EU-wide surveys conducted in 2013 and 2015; and two series of national and EU-wide reports on EPC markets. Both these deliverables were achieved successfully, but the latter in particular proved to be very well received by the markets.
Two series of national reports were created: one focusing on the barriers and success factors for EPCs, and one developing recommendations for action based on these findings. Both types of reports were also summarised into EU-wide reports, which compiled the findings of national reports while highlighting trends and common characteristics between countries or groups of countries (beginners, intermediate or advanced).
Throughout the course of the project, it became obvious that the reports (national as well as EU-wide) were of interest to the European stakeholders, as many Tranpsarense partners reported being often asked about the reports and engaging in conversations about their findings with both end-clients and EPC providers. As the reports were written fairly early in the project, they became a great way to attract stakeholders to the Transparense project and to increase interest in EPC business. In the end, the success of these reports in generating interest amongst national stakeholders is reflected in the number of downloads for these series of reports: throughout Europe, these documents were downloaded over 5,600 times. Over 2,100 printed versions of the reports were also distributed to interested parties during trainings, seminars and workshops in Europe. Overall, more than 7,700 copies of these reports have found their way into the general public, way beyond the initial project target of 2,000 copies. This will have undoubtedly contributed greatly to the success of the project, by raising the stakeholders' awareness to EPC and educating them with regards to their own national EPC market.
More than 1600 EPC market players trained
The ultimate goal of the training seminars organised by Transparense partners was to support the supply side in keeping pace with market developments while continuing to offer high-quality services. Through the seminars, attendees were informed from different viewpoints not only about the Energy Performance Contracting concept, but also about more specific aspects, such as financing issues, legal matters or technical details. The trainings also served as a platform for discussion about the European Code of Conduct for EPC and provided stakeholders with an important means of promotion.
In total 70 training seminars were organised in the course of the project, attracting 1611 participants (more than twice as many as initially planned), leading to a substantially greater information impact.
The training seminars were originally planned to primarily target ESCOs, but during the project it turned out to be more useful to widen the target group and invite not only ESCOs, but also clients, facilitators, policymakers, etc. As a consequence, they could complement each other and thus provide a more comprehensive understanding of the EPC concept.
The seminars were tailored to the particular level of EPC market development and the current needs of the stakeholders. At the beginning of the Transparense project, a set of training modules were developed focusing on EPC basics, EPC process, financial and strategic aspects. The modules were developed in such a way as to be easily used by stakeholders for their follow-up activities. In 2015, the training modules were updated and distributed to the market players.
To gain feedback, an evaluation sheet was distributed to the participants at each training seminar. The participants evaluated the seminars very positively, with the overwhelming majority of attendees saying they were useful for gaining insight into the EPC concept and helpful for preparing an EPC contract and implementing projects. The information provided was in general found to be exhaustive and the speakers were praised for their experience. One of the most successful aspects in the trainings turned out to be the interaction between speakers and trainees and between speakers themselves. The exchange of views and know-how contributed to a more comprehensive learning environment.
European EPC industry will ensure sustainability of the Code of Conduct for EPC
The aim of the Transparense project was to create Code of Conduct defining the basic values and principles that are considered fundamental for the successful preparation and implementation of EPC projects. Its main role was to bring confidence to the EPC markets in Europe, taking into account its variety across the countries. Compliance with the Code of Conduct would serve as a minimum set of quality requirements of implemented EPC projects. At the beginning of the Transparense project, it sounded almost like a mission impossible to convince EPC providers across Europe to contribute to development of and adopt one common Eureopan Code of Conduct for EPC. At the time there was no widely accepted agreement on what EPC is except of the general definition by the EED.
However, the European Code of Conduct for Energy Performance Contracting (EPC) has been developed in cooperation with EPC providers and their associations, clients, facilitators and policy makers and launched in 2014. It was generally welcomed by market players in all 20 European countries participating in the Transparense project. By the end of September 2015, the Code of Conduct had more than 200 signatories across Europe (136 EPC providers, 14 national associations and two European associations of ESCOs, 54 facilitators and other signatories).
The Code of Conduct underwent a two-year stakeholder process to ensure that market players accept its principles. It has been discussed at 40 national workshops, where feedback has been collected and reflected in the final wording of the principles of the Code. Moreover, 20 business facilitation seminars for EPC providers and their clients explained the principles of the Code and how they can be implemented in a best practice project. The Code of Conduct was endorsed by the European Association of Energy Service Companies (eu.ESCO) and the European Federation of Intelligent Energy Efficiency Services (EFIEES). Although the Transparense project has been completed in September 2015, the two European associations continue administering and maintaining the Code of Conduct. Thus the European EPC industry itself will ensure the sustainability of the Code administration and its further custody.
"The main role of the European Code of Conduct for EPC is to bring confidence to the EPC market in the EU, taking into account its variety across Member States," Valérie Plainemaison, Secretary General of EFIEES, European Code Co-administrator
"It is a positive sign towards the market and a resilient foundation for long-term business development," Voker Dragon, managing director of eu.esco, European Code Co-administrator
Until September 2015, national Code administrators have already been identified in 20 Transparense countries and Romania. These are 11 ESCO associations as well as also other governmental and non-governmental organisations influencing the EPC market. National administrators administer the Code of Conduct according to common procedures and maintain national lists of the signatories online.
The European Code of Conduct received a wide interest from the professional audience with 6,200 downloads of the Code of Conduct by the end of September 2015. The Code has been also presented at the two ESCO Europe 2015 Conferences in Milano and Vienna.
The Code has vast potential to support EPC market development, which can be exploited, for example as discussion guideline between client and EPC provider, guidance for preparation of tender dossiers and contracts, marketing tool and foundation for EPC quality assurance scheme.
Broad audience targeted by ambitious dissemination activities
Key part of the Transparense project was the know-how transfer and capacity building which was highly supported by the dissemination of its results. The regularly updated websites (D6.2) have been important for disseminating, marketing and promoting the results of the project to a broader public. The website has had almost 100 000 visits since its launch in 2013, out of which more than half was reached in the last year of the project (50,750). Examples of other downloads from the website includes over 3,696 downloaded newsletters and 6,200 downloads of the Code of Conduct in various languages. Over 2 million potential readers have been reached by 295 media articles generated through the dissemination activities of the Transparense project. The articles were mainly a result of 4 international and 54 national press releases published by the Transparense partners in at least 20 different countries. Some of the articles have been prepared for specific journals and provided more in-depth analyses.
A video to promote the European Code of Conduct for Energy Performance Contracting has been produced including subtitles in the languages of the Transparense project countries. The video explains the Code of Conduct in an educational manner and includes interviews with several stakeholders of main importance for the sustainability of the Code of Conduct after the project is ended. For example, both the ESCO organisations eu.ESCO and EFIEES are interviewed.
Several municipalities in the province of Flemish Brabant, including Beersel, want to save energy in their buildings. They chose to do so via an energy performance contract. An EPC facilitator will support the municipality during the implementation of the contract. Watch the Dutch new YouTube video (5')!
The American economist Jeremy Rifkin considers ESCO's and energy performance contracts as a key-element of the solution for climate change.
Rifkins in its speeech for a TVVL-event in the Neetherlands in November 2015 "Ensure that all buildings are renovated. Provide them with solar panels, thermal storage and other new energy systems. Scale these systems uip, so that the whole surrounding neighbourhood can also benefit of them and organise the renovation via a performance contract. This gives a guarantee to the neighbourhood that they will not have to worry about maintenance during a specific period. ''
More information: here
Fill in European survey on Eurostat guidance note "The impact of EPC´s on government accounts"here.
On 7 August 2015, Eurostat published a guidance note titled "The impact of EPC´s on government accounts". If until now the European System of National and Regional Accounts (ESA 2010 - in force since September 2014) was subject to interpretation, now with the Eurostat guidance note it is clear and not at all positive for EPCs.
The Eurostat Guidance Note confirmed the interpretation of public accounting rules as regards EPC and public debt stating that in order for a project to be considered a public-private partnership (PPP), capital expenditure for improving energy efficiency by private entities in the contract should reach at least 50% of the total value of the building after the energy efficiency renovation. This is considered a major burden to EPC, as national administrations will hesitate to engage in EPC as they might fear of increasing public debt.
This interpretation should be changed, as it does not take into account that the full investment or at least a part of the investment into the energy efficiency projects is offset by monetary savings and that EPCs can provide an energy savings guarantee.
More information is to be found under the following links:
- Guidance note
- Eurostat presentation (Denis Besnard, Eurostat Unit D1) during "Energy Services Market in the EU" Workshop organised by Joint Research Centre on 22 October 2015.
- All presentations of "Energy Services Market in the EU" Workshop.
- Presentation of the results of the Transparense project.
Transparense project was presented at the European Utility Week in Vienna on 4 November 2015. The presentation "European EPC Markets and the Code of Conduct as a first step towards harmonisation and standardisation" was held by the Transparense co-ordinator Jana Szomolanyiova and can be downloaded here. She also contributed with the project experiences to the panel discussion: Contract complexity, how to reach standardisation?
The video about the European Code of Conduct for EPC is finally here! Watch it and get a quick summary what the Code of Conduct can do for you, how it works and how to get involved.
ESCoNetwerk.nl organises - in collaboration with amongst other the EESI 2020 project and Factor4 - on November 5th in Amsterdam a seminar for real estate owners and users that want to retrofit their buildings. The seminar focuses on energy performance contracting and comfort and employee productivity as a 'side effect' of the retrofitting.
The agenda of the seminar is the following:
14:00 Welcome and introduction
Harry Sterk, director, ESCoNetwerk.nl
14:15 The new value of real estate: Health
Francesco Franchimon, directorr, BAM Techniek Energy Systems
14:30 Workshop comfort as a 'side effect' of energy retrofitting of buildings
Lara Muller, director Blue Building Institute
14:45 Setting up energy, comfort and maintenance performance contracts
Johan Coolen, managing partner, Factor4
15:30 Case: What if an EPC contracter does not live up to his guaranteed savings?
Hallvard Benum, engineer, Kongsberg Kommunale Eiendom KF, Norway
16:00 How to organise and contract comfort improvement with an EPC contractor?
Alexandra Boot, managing partner, Boot Advocaten
For more information and registration, click here.
The temperature on earth should not rise with more than 2 degrees Celsius by 2100, we can not afford more. The top figures of a whole series of Belgian companies is aware of the seriousness of the situation: they commit to take action themselves, and request the Belgian delegation to make a success of the Climate conference in Paris COP21. The top figures propose amongst other the introduction of a CO2 tax in the countries with the largest emissions and to extinct existing CO2 subsidies. The call - that was front page news of leading Belgian newspapers such as De Standaard - was signed by an unusual coalition of 67 Belgian companies (amongst other Factor4) and non-profit organisations.
The signing companies and non-profit organisations: Accenture Belgium, Alpro, Antwerp Management School, Antwerp Port Authority, Argenta, Antwerp World Diamond Centre, Baltimore Aircoil Company, Bond Beter Leefmilieu, Beauvent, Befimmo, Beyers Koffie, Bma Ergonomics, Bopro, Boydens, Bpost, Bvba 32 (Ann Demeulemeester), Care, Climact, Cofely, Cofinimmo, Coop. Leuzoise Energies Du Futur, Daoust, Delhaize, De Lijn, Deloitte Belgium, D’ieteren Auto, Ecores, EDF Luminus, Efico, Electrabel, Eneco, Exki, Factor4, Fairtrade Belgium, Fondation Generation Futures, Goodplanet Belgium, Greencaps, IBA, Ichec, Ikea, Infrabel, Intellisol, Iris Group, Janssen Pharmaceutica, KBC Group, KPMG, MCA Recycling, Mobistar, Natuurpunt, Nestlé Belgilux, Nike, Nnof, Passiefhuis Platform, Philippe De Woot, Proximus, Quilla, Randstad Group, Rescoop (EU, Vlaanderen en Wallonië), Ricoh, Saint-Gobain Construction Products Belgium, Siemens, Sipef, Sodexo, Solvay, Spadel, STIB, The Shift, Triodos Bank, UCB, Umicore, UN Global Compact Network Belgium, Unilever, Université De Namur, Van Marcke, Vlerick Business School en WWF
Read the whole article here.
Brand new data have been added into the existing EPC Market Databases which can be found in the website´s menu:
The data draws from a new 2015 Transparense survey distributed to European countries' most relevant energy services companies and EPC market facilitators. Altogether, 112 EPC providers and facilitators from 20 countries across Europe filled in the survey including the largest EPC providers. The survey had been made available online in order to make the distribution process as easy as possible.
The new survey represents a follow-up to the survey carried out in 2013 aimed at obtaining information on the EPC market in the EU. The survey again covers four key areas: existing ESCOs and national EPC market, EPC models, financing models and policy initiatives.
Thanks to the same survey design, comparisons between the years 2013 and 2015 can be made easily. A summary on the new data and the development since the last survey is being prepared and will be published soon.
The European Federation of Intelligent Energy Efficiency Services (EFIEES) and the European Association of Energy Service Companies (eu.esco) become official European co-administrators of the European Code of Conduct for Energy Performance Contracting (EPC) as of 1st September 2015.
The European Code of Conduct for EPC (EPC Code of Conduct) has been developed within the project Transparense1 co-funded by the Intelligent Energy Europe Programme of the European Union. The EPC Code of Conduct is a voluntary commitment which defines the basic values and principles that are considered fundamental for the successful preparation and implementation of EPC projects within European countries.
The EPC Code of Conduct already has a significant number of signatories across Europe2 and is being put into practice. It has been successfully used to introduce clients to the EPC concept and has been seen as a unique selling proposition.
"The main role of the European Code of Conduct for EPC is to bring confidence to the EPC market in the EU, taking into account its variety across Member States," says Valérie Plainemaison, Secretary General of the European Federation of Intelligent Energy Efficiency Services (EFIEES).
"It is a positive sign towards the market and a resilient foundation for long-term business development," says Volker Dragon, Chairman of the European Association of Energy Service Companies (eu.esco).
As a proven energy service model, EPC offers the opportunity to make a significant contribution in meeting the EU's carbon and energy targets.
Notes for editors:
The European Federation of Intelligent Energy Efficiency Services (EFIEES) represents private companies (Energy Efficiency Services Companies, EESCs) providing an overall energy management service to end users. Website: www.efiees.eu
The European Association of Energy Service Companies (eu.esco) was founded in 2009 by the European Building Automation and Controls Association (eu.bac). Website: www.euesco.org
For more information, please contact:
EFIEES: Katarzyna Wardal | +32 2 230 65 50 | firstname.lastname@example.org
eu.esco: Andrei Litiu | +32 2 706 82 02 | email@example.com
1 The EPC Code of Conduct is available on Transparense project's website: www.transparense.eu
2 For the time being, there are 161 signatories in Europe: 118 EPC providers, 12 associations of EPC providers and 31 other entities operating on the EPC market.
The Belgian business journal 'De Tijd' expects between august 2015 and january 2016 an increase of the electricity price of in total 43% for households in the region of Flanders. The journalist states in its article that this estimated price increase is most probably even a conservative estimation, the real increase can even be higher. The price increase expected by the De Tijd is signiicantly higher than the one communicated before by the government.
The journalist didn't make a simulation of the expected price increase for private companies. The VAT increase from 6% to 21% and the ending of the free electricity delivery of 100 kWh per person, is responsible for 25% price increase. The remaining 18% increase is generated by higher costs for green electricity, increase of distribution costs, etc. These costs also have effect on the electricty price of privater companies. Given the relative high share of these costs in the total electricity price of many private companies, the expected electricty price increase for privarte companies can be significantly higher than 18%.
The ending of the free electricity delivery of 100 kWh per person (responsible for 12% price increase) is not applicable for public authorities, such as municipalities and cities. The growth of electricty prices for public authorities thus can be about 36%, altough also this figure will depend of the share of the different components in the electricity invoice of public authorities.
More info: De Tijd
The Belgian province Flemish Brabant goes for smart energy saving. It is the first Belgian province that signed the Code of Conduct for energy performance contracting (EPC). In general, the province supports actively the development of EPC projects on its territory, as part of its ambition to make the province climate neutral by 2040. More info here.
The public development company GRE Liège, ie the Group for Economic Redeployment in the Liège region. launched an ambitious EPC programme. The EPC-programmes foresees the energetic retrofitting of 120 governmental buildings spread over 10 municipalities in the province of Lège, the expected total investment is 40 million euro euro.
The public tender of the first two projects was published in June 2015. One tender dossier includes a set of buildings with different functions (offices, libraries, etc) and the other dossier covers sporthalls and swimming pools.
GRE Liège uses 'smartEPC', ie the EPC-contract and procurement documents developed in 2012-2013 on demand of Fedesco (Belgian federal government).
More info: www.gre-liege.be
Public authorities at all levels are appealing to businesses and individuals to be more aware of their energy consumption in order to avoid any power shortages. In the context of the City of Antwerp’s project, “Energy for the heart of Antwerp”, the Antwerp World Diamond Centre is implementing several energy-saving measures. As a result of these measures, we will save 30,000 euro annually on our energy bill.
The City of Antwerp is promoting more sustainable work, and with CityLab2050 (Stadslab2050) has initiated a new pathway, together with several Antwerp companies and industries, whereby it will accelerate progress with regard to energy savings and a sustainable energy supply.
The Antwerp World Diamond Centre commissioned an energy audit from which it appeared that with better use of the existing installations, more than 15% savings could be achieved on the cost of cooling and heating. Together with the other users, these installations are responsible for 200,000 euro in electricity expenses annually. As a result of this initiative, the energy bill was reduced to 170,000 euro.
“We have made several adjustments in recent years, so that major investments were unnecessary,” says Ari Epstein. “By means of a number of simple interventions – such as a new scheme for cooling and heating, proper coordination of the new installations and automatically turning off the vending machines – we will already be much more energy efficient.”
Factor4, a company that specializes in supporting business that wish to make their building more energy efficient, conducted the energy audit and set up an action plan in consultation with the Antwerp World Diamond Centre. This action plan will run for a period of two years, enabling Factor4 to implement the measures and provide guarantees about the results achieved by means of an energy performance contract. If the costs incurred are not recuperated by the savings measures, the AWDC will be refunded a percentage of the costs. On the other hand, both parties agree to share any profit that is made.
The province of Flemish Brabant coached 8 municipalities on its territory - Beersel, Halle St-Pieters-Leeuw, Bertem, Lubbeek, Londerzeel, Meise and Asse - in using Energy Performance Contracting (EPC) for making their buildings more energy efficient.
The coaching process was technically realised by amongst other EY (Ernst & Young) and Factor4.
Europe's top oil and gas companies urged governments around the world to introduce a pricing system for carbon emissions, as governments meet in Bonn, Germany, on Monday to work on a U.N. deal to fight climate change.
Criticised for not doing enough to tackle climate change, the chief executives of BG Group, BP, Eni , Royal Dutch Shell, Statoil and France's Total said carbon pricing "would reduce uncertainty and encourage the most cost-effective ways of reducing carbon emissions widely."
In a joint statement, the companies acknowledged "the current trend" in greenhouse gas emissions is too high to meet the United Nation's target for limiting global warming by no more than 2 degrees.
"Our industry faces a challenge: we need to meet greater energy demand with less CO2. We are ready to meet that challenge and we are prepared to play our part," the leaders of the six companies said.
We firmly believe that carbon pricing will discourage high carbon options and reduce uncertainty that will help stimulate investments in the right low-carbon technologies and the right resources at the right pace.
Transparense will host a conference session entitled "Increase quality and trust to make EPC markets flourish across Europe" at the 2015 EU Sustainable Energy Week Policy Conference on 18 June, from 4:00 - 5:30 pm in Brussels. The session will take place in the Committee of the Regions' Jacques Delors building, 5th floor. For registration please first create an EUSEW account and then register here. The number of seats is limited..
The session is organised in cooperation with the EESI2020 and ICP Europe projects and the two European associations of energy service providers: EFIEES and eu.ESCO.
It aims to present the reasons why only a tiny part of the estimated vast potential of the Energy Performance Contracting (EPC) model has been used and what should be done to allow this potential to be exploited so that it significantly contributes to meeting the EU's ambitious climate and energy targets for 2020. The target audience are European and national policymakers, EPC providers and their associations, EPC facilitators and experts. Policymakers also represent large energy consumers and thus also potential EPC clients.
During the first hour of the session the main outcomes of the European projects will mainly focus on development of the EPC market. Transparense, EESI2020 and ICP Europe will be presented as well as the experiences of the two European associations of energy service providers. It will be moderated by Jaroslav Marousek, Board Director of SEVEn, The Energy Efficiency Center, who has been recently supporting the development of several new Central and Eastern European EPC markets.
The 2015 EU Sustainable Energy Week Policy Conference will be held from 16 - 18 June 2015 at two venues in Brussels: the European Commission's Charlemagne building and the Committee of the Regions' Jacques Delors building. programme here.
European Code of Conduct for EPC and other Transparense project main outcomes have been presented on Public workshop on innovative financing for energy efficiency and renewables on 28 April 2015 in Brussels organised by the EASME - Executive Agency for Small and Medium Enterprises of the European Commission. See the presentation here.
Up-scaling investments in energy efficiency and renewables is a major challenge to meet the European Union's energy and climate targets for 2030. Lack of public resources requires new approaches to investment. Local and regional authorities have a key role to play in mobilising stakeholders, developing projects pipelines and creating the business case for attracting private investment.
This shift to innovative financing approaches is supported by the European Union's Project Development Assistance (PDA) facilities such as ELENA Intelligent Energy Europe PDA funding to launch up to EUR 4 billion of investments in energy efficiency and renewable energy, focused on existing public and private buildings, street lighting, district heating and clean urban transport. Most PDA projects are developing innovative solutions to finance investments through private capital in a sustainable manner.
The workshop focused on operational solutions implemented by local and regional authorities when developing a pipeline of investments, as well as the achievements of on-going projects focused on innovative financing approaches.
In collaboration with EcoHuis (City of Antwerp) and Solvio, Factor4 is developing an innovative energy saving project in 3 large apartment buildings located in Antwerp. The energy saving measures will be contracted via an EPC-contract ('energy performance contract'). An ESCO ('energy service company') will implement and finance the energy saving measures.
The advantages of this approach:
- the financing of the energy saving measures is done by a third party
- the energy saving is guaranteed by the ESCO and is typically more than the double of the energy saving that would be obtained in a conventional, non performance based approach with the same investment involved. The reason for this much larger energy saving effect is that in an EPC contract the ESCO is paid as a function of the measured performance (i.e. the energy savings) while in a conventional approach the engineer and contractor are remunerated via a percentage/commission on the investment or a fixed fee. In the conventional approach, the engineer/contractor has no (financial) incentive to maximise the energy saving which in practice leads to poor energy saving results.
The project is the first one of this type in Belgium, and one of the few of this type in the European union. The innovative features of the project are amongst other:
- the realisation of an EPC-project in the residential sector
- the solution of several conflicts of interest that in practice prevent the realisation of EPC-projects in apartment buildings. Factor4 will solve for instance is the potential conflict of interest between indivual flat owners and the overall group of owners: e.g. for an individual owner, the best 'strategy' could be not to support the EPC-project and not to pay for the ESCO services while at the same time hope to receive the benefits of the reduced energy cost for free. This so called 'free rider' behaviour of individual actors is a typical barrier for implementing EPC projects.
Furthermore, Factor4 will develop a solution of the conflict of interest between the owner and the tenant of a flat. Indeed, it is the owner that will pay for the services of the ESCO while it is the tenant that profits from the reduced energy bill. Because of this, the strategy of owners of rented apartments could be not to support the EPC-project.
Factor4 has a a lot of experience in succesfully solving these conflicts of interest in energy saving and EPC-projects through proper communication with all relevant actors and smart contracts that stimulate constructive individual behaviour.
For more information: firstname.lastname@example.org, 00-32-494729795
On 31 March 33 parties have signed the European Code of Conduct for Energy Performance Contracting, a set of guidelines, values and principles that are fundamental for a successful implementation of EPC projects (EPCs) in Europe. The Code of Conduct was developed within the IEE project ‘Transparense’ with partners from 20 different EU countries. ECN represents the Netherlands in this project.
“ECN has introduced the code in the Netherlands and cooperates with ESCoNetwerk.nl to ensure that as many companies as possible adopt the code. The fact that so many new companies have endorsed the code is good news for clients of EPC providers. They have gained a better understanding of what to expect and demand from EPC-providers”, says Marijke Menkveld, senior consultant at ECN.
The companies that have endorsed the Code of Conduct are recognized parties in de ESCo industry, a.o.: Cofely, BAM, Strukton, Eneco, Siemens, Honeywell, Ovvia, Veolia, GETEC, Greenfox and in the real estate and financial sector such as CBRE Global Investors, Schiphol Real Estate, Energiefonds Overijssel and the ASN Bank.
EPCs are a relatively new and smart way to achieve energy savings in real estate. The contracts include a commitment to guaranteed energy savings for several years. The client and supplier (the Energy Service Company) come to an agreement on the sustainability (measures, guarantees, refunds, etc.). ESCo’s remain involved in the project for a longer period of time and retrieve their investments from the realised energy savings. This way ESCo’s can enable the client to focus on their core business.
Energy Performance Contracts require a non-traditional relationship between contractor and client, for long-term partnerships require different behaviour and a new mindset. Therefore the European Code of Conduct for Energy Performance Contracts was developed; EPC providers who are signatories of the EPC Code are committed to carry out EPC projects in accordance with the principles of the Code of Conduct.
The Flemish minister of Energy, mrs. Turtelboom, orders PMV (Participatie Maatschappij Vlaanderen (PMV)) to investigate the foundation of an ESCO fund. This ESCO fund would finance energy efficiency investments in companies.
Download the press release here
Interviews with Valérie Plainemaison (EFIEES) and Peter Hug (eu.esco) about the European Code of Conduct for Energy Performance Contracting
“The main role of the European EPC Code of Conduct is to bring confidence to the EPC market”
Ms. Valérie Plainemaison, Secretary General for the European Federation of Intelligent Energy Efficiency Services (EFIEES), presents her views on the EPC market and the European Code of Conduct for Energy Performance Contracting.
What are the main barriers/challenges on the current market for EPC in Europe?
- The market of EPC as well as the energy-efficiency services market in general faces several regulatory and non-regulatory barriers in Europe, depending on Member States.
A list of the main non-regulatory barriers involve: lack of awareness and information; lack of knowledge of public purchasers on energy-efficiency actions that may be complex in nature and lack of targeted financing instruments such as guarantees and low-interest loans (long-term) enabling affordable financing. Among the regulatory barriers, the most important obstacles are: rules on public procurement (split tenders hindering overall contracts), heat pricing regulation which does not enhance energy-efficiency actions in some Member States and rules on VAT discriminatory to energy-efficiency services favouring equipment-only purchase in some MS. Split incentives between owners and tenants or among owners is another essential barrier which is linked to both regulatory and non-regulatory aspects.
- The European Commission is empowered by the Energy Efficiency Directive (2012/27/EU) to require Member States to take appropriate measures to remove regulatory and non-regulatory barriers to energy-efficiency services.
It is fundamental that Member States identify existing barriers and propose measures to address them and that the European Commission takes action to assess this process, possibly by developing an "Energy Efficiency Barriers and Solutions Rating" presenting problems and measures in different Member States.
How can the European Code of Conduct for EPC support the EPC market?
- The main role of the European EPC Code of Conduct is to bring confidence to the EPC market in the EU taking into account its variety across Member State. The European Code of Conduct has a potential to overcome capacity building, information and awareness issues, which is extremely important for the further development of the EPC market in Europe.
From your point of view, what is the added value of becoming a signatory of the European Code of Conduct for EPC?
-The European Code of Conduct reflects the values and principles which our members consider essential to the development of high-quality energy-efficiency services markets in Europe. Becoming a signatory of the European Code of Conduct for EPC is a confirmation of our commitment to further support the growth of the energy-efficiency services market in Europe.
What do you think the market for EPC in Europe will look like in five years?
- It is difficult to predict the future in general, but EU energy efficiency policy has the potential to transform the energy market into one which focuses on the delivery of energy services - i.e. the useful outcome of using energy - rather than purely on the delivery of energy itself. Companies and business models which are organised in this way already exist, but so far market conditions and the legislative framework are not as supportive or effective as they could be. The European Code of Conduct for EPC may be a great tool to raise awareness on energy-efficiency services as a successful and consumer-friendly business model within the market actors and policy makers.
“This is a positive sign towards the market and a resilient foundation for long-term business development”
Dr. Peter Hug, Managing Director for the European Association of Energy Service Companies (eu.esco) presents his views on the EPC market and the European Code of Conduct for Energy Performance Contracting.
What are the main barriers/challenges on the current market for EPC in Europe?
- Performance contracting has been in place in Europe since the early eighties. However, the market remains underdeveloped despite increasing and volatile energy prices, federal and state energy savings mandates, the continued lack of capital and maintenance budget, and growing awareness of the need for large-scale action to limit greenhouse gas emissions. Several factors, respectively key barriers, are holding back the growth of the EPC market and have to be addressed and subsequently removed to boost the EPC market in Europe:
• Although, EU funded initiatives are active in this direction, there is still a lack of awareness, information and trust in both the private and public sectors of most European Member States.
• The low level of market development is also provoked by the lack of specific policies and government-backed support mechanisms designed to promote performance contracting respectively the intention to remove any impediments which hinder the rapid and fruitful implementation of the business model.
• Uncertainty and confusion has been caused by a lack of homogeneous service descriptions and definitions of EPC contract scopes as well as different implementation process sequences in the EU Member States. This creates confusion and prevents the development of best practice examples, harmonised framework for procedures through the entire project life cycle and economies of scale.
• One of the biggest disadvantages and contradictions is the limitation of public sector companies - existing within some European Member States - to leverage financing based on future energy savings.
How can the European Code of Conduct for EPC support the EPC market?
- It supports our work in respect to the positioning of all companies, committed to Code of Conduct, as diligent, prudent and reliable partner towards potential customers. This is a positive sign towards the market and a resilient foundation for long-term business development, which is
extremely important in times of economic and financial insecurity. The Code of Conduct helps to overcome most of the above mentioned obstacles, however more actions should focus on mitigating the lack of awareness, information and trust, which if removed could help to initiate a stronger market pull if EPC providers are able to provide policymakers and the private sector with a more in-depth understanding of energy efficiency in buildings.
A positive effect is that EPC providers who become signatories will cause a significant ramp-up in energy efficiency activities occurring at local, regional, and federal levels and - hopefully - will spill out in the private sector. This will generate business for players in the EPC market place independently of their size.
From your point of view, what is the added value of becoming a signatory of the European Code of Conduct for EPC?
- Using so far gained experience for building a successful, professional and transparent implementation of EPC projects on this common foundation of EPC values and principles will allow EPC providers to speak with one voice which we call the "magic phrase". EPC providers' services include a variety of activities, such as energy analysis and audits, energy management, project design and implementation, maintenance and operation, monitoring and evaluation of savings, property management, and energy equipment supply up to financing models.
"The European Code of Conduct for Energy Performance Contracting defines common values and approaches for EPC providers and clients on a voluntary basis. It was designed in cooperation with relevant stakeholders and endorsed by the European Association of Energy Service Companies (eu.Esco) and the European Federation of Intelligent Energy Efficiency Services (EFIEES). Against this background, it has the potential to further enhance transparency and market confidence in EPC as an important means to tackle the energy efficiency challenge."
Björn Zapfel, the Executive Agency for Small and Medium-sized Enterprises of the European Commission
At the National ESCO Conference in Amsterdam on 3th March 33 new EPC stakeholders publicly signed the Code of Conduct. Within the signatories are a lot of ESCo’s active on the Dutch market: Cofely, BAM, Strukton, Eneco, Siemens, Ovvia, Veolia, Honeywell, GETEC Benelux, ZONenergie, Greenfox, Lohuis lighting, QING/ESCo Nederland, Trending Energy, Progress Energy Services, manESCo, MetEnergie, Ecorus. Dubotechniek,
Also the code was signed by other signatories, like faciiltators (DWA, Balance, BAS Nederland, Escoplan, Deerns, Fortierra Enodes, Ecorus, Alpheon Energy) and also clients signed the code (CBRE Global Investors, Schiphol Real Estate, , Stichting Maatschappelijk Platform Haarendael, en Energiefonds Overijssel, LOC) and one bank: ASN Bank.
The Netherlands Enterprise Agency (RVO.nl 'Rijksdienst voor Ondernemend Nederland') launches on 31th March on the National ESCo congres in Amsterdam the Dutch procurement guideline for energy performance contracts. The Guideline will offically be handed over to Richard Tieskens, Director Real Estate Mangement of the Central Government Real Estate Agency. With a real estate portfolio of more than 13.3 million m² floor space, this agency is the largest real estate management company in the BENELUX.
The Guideline was written by Boot Advocaten, a Dutch law firm specalised in real estate and sustainable energy, in collaboration with 9 stakeholders incl. ESCo's and EPC-facilitators.
More info: contact Netherlands Enterprise Agency (project maanger Selina Roskam) or here.
The European Energy Service Award is now open for applications in the categories Best European Energy Service Promoter, Best European Energy Service Provider, and Best European Energy Service Project.
Closing date for applications is June 29, 2015.
The award winners will be selected by an international jury of experts and awarded at a high level event in Brussels in autumn 2015.The European Energy Service Award is organised by the Berliner Energy Agency in the context of the project EESI 2020, funded by the European Commission's IEE programme.
For background information about EESA, do not hesitate to contact the Belgian partner of EESI, Factor4: email@example.com or 00-32-494-729795.
On Thursday 2 April in the afternoon (14:00 - 17:00) a seminar on Energy performance contracting and ESCO's will take place: their potential and that barriers that have to be removed for saving energy on a large scale via ESCO's.
Place: Cultuurcentrum De Markten, Oude Graanmarkt 5, Brussels
Confirmed speakers are for instance:
- Olivier Rapf, Executive Director of the Buildings Performance Institute Europe
- Bernhard Ardaen, financial advisor of B-crown advisors.
- Charles-Henri Bourgois of Factor4
- Bjorn De Grande of the City of Ghent
- Ingmar Hermans, business development director at Energinvest
- Caspar Boendermaker, advisor at Bank Nederlandse Gemeenten
Together with other European EPC-experts Johan Coolen (Factor4) visited the first Spanish EPC-project today, i.e. the Gran Teatre del Liceu Barcelona. By - amongst other - installing a highly efficient air conditioning system and by introducing a new building management system, the annual energy cost has been reduced by more than 40% (more information here).
While only a few years ago, EPC ('energy performance contracting') was an unknown approach in the Catalan region, the EPC-market is now growing rapidly. Presently, 20 new EPC-projects are under development.
In Italy ESCo Primiero, a supplier of EPC services, has integrated the code in the design phase of EPC contract and have actively involved the end-users. Luigi Boso, President of ESCo Primiero, believes that "this is a fundamental aspect for the success of the initiative and significant for the customer, who is personally involved in the principles of responsibility. It is also significant for the quality and reliability, with a guarantee of transparency and clarity in the different aspects that are innate in the initiative."
Luigi Boso, President of ESCo Primiero
DECA - the association of Energy Service Providers and Contracting Austria - signed the Code of Conduct in September 2014. According to their chairman Heinz Mihatsch endorsement of the Code is of high interest to the Austrian energy efficiency association, its members and the market "as it represents a strong commitment to the core values of energy performance contracting". The successful introduction of the Code is also in line with DECA and e7 Energie Markt Analyse strategic work on finalizing traceable and transparent quality criteria. "The application of these criteria represents a unique selling proposition for the provider and offer the client with essential information."
Heinz Mihatsch, Chairman DECA
The working group for EPC in the German ESCO association VfW e.V. became signatory of the code 26th November 2014. VfW is the leading representation of interests for Contracting and Energy Services and is actively supporting the objectives
of the new German National Action Plan for Energy Efficiency (NAPE). This underlines the growing importance of energy service models and the further market development for Energy Performance Contracting.
In Portugal the signatory process is a success story - so far nine companies have signed the Code and it is currently being integrated in one EPC contract. Luís Hagatong, Schneider Electric Portugal, state that "the European Code of Conduct for Energy Performance Contracting reflects the commitment of the signatories to develop a professional and credible work, in a collaborative, transparent and clear perspective in order to develop a sustainable energy service market with high quality standards."
Luís Hagatong, Energy Efficiency Manager Schneider Electric Portugal
In Sweden a number of major ESCOs have become signatories of the code and the ESCO association EEF has accepted to be national administrators of the code. According to Lotta Bångens, EEF, "The Code of Conduct is a good initiative and a first step towards a greater transparency is welcomed by clients. This is consistent with other work within EEF. Requirements, which everyone understands, follow-ups and transparency, are good for the energy efficiency market."
Lotta Bångens, EEF
Although the ESCO business in Portugal is still in the process of development and establishment, this country is already a success story in the dissemination of the European Code of Conduct for EPC developed within Transparense project.
Conferences, workshops, scientific articles or even press releases, surveys and the strong marketing tool "word of mouth" are the means of dissemination of excellence! The common goal is to promote this area of business and its benefits among the stakeholders (industry, large companies, banks, local authorities and managers/responsible for buildings).
These outreach initiatives have been effective in such a way that, on September, a national magazine dedicated to Energy Efficiency announced in its notice "Code of Conduct reinforces transparency in energy performance contracts", online, the final version of the European Code of Conduct for EPC as a good mechanism to increase transparency in this market.
Beyond these initiatives, Portugal is also making a strong bet on the establishment of partnerships with the major national organisations in the area of energy, as for example the Directorate General of Energy (DGEG) and ADENE (National Energy Agency), who also promised to disseminate the Code among the ESCOs registered in the National Registry Database for ESCOs qualification, in order to inform them about this voluntary Code of Conduct and the procedure to sign it. This is an important measure as some big ESCOs are reluctant to sign it because they fear it would be an additional administrative burden.
In this context, those responsible for the Transparense project in Portugal assume that the dissemination of European Code of Conduct for EPC of utmost importance as "the exchange of information, consultancy and training based on good practices can serve as balm to these (and other) obstacles".