ESCOs - Energy Service Companies
Energy efficiency has gained importance over the last few years. Higher energy savings combined with higher investments in renewable energy are necessary to achieve the EU 2020 targets. Therefore, companies offering energy services, such as energy analysis and audits, energy management, project design and implementation, maintenance and operation, are playing an increasing role in European energy policy.
ESCOs also offer these same services; however, ESCOs' activities can be distinguished from the activities of other energy service provider companies in the following ways:
- they guarantee the energy savings and/or the provision of the same level of energy service at a lower cost,
- their remuneration is directly tied to the energy savings achieved, and
- they can finance, or assist in arranging financing for the operation of an energy system by providing a savings guarantee.
The website of the European Association of Energy Service Companies offers some information about ESCOs operating in the European market and their projects.
The European Commission's Joint Research Centre analyses and researches the activities and development of ESCOs as part of the Scientific & Technical Reference System on Renewable Energy and Energy End-use Efficiency, in order to provide accurate information to policy makers, experts and other interested parties. The 2010 Status Report 'Energy Service Companies Market in Europe' updates and investigates the ESCO market in the EU Member States and neighbouring countries, and identifies the changes that have occurred between 2007 and 2010.
To view information and reports related to ESCOs, please click here.