About eu.ESCO

Motivation

Buildings are responsible for 40% of the energy consumption and 36% of the European Union’s (EU) CO2 emissions. Therefore, energy efficiency of buildings is crucial to achieving the EU objectives, namely the reduction of Greenhouse Gas emissions (GHG) by 80‐95% by 2050 compared to 1990 levels.

For this to happen, the European energy services market needs to be strengthened. In this context, the European Association of Energy Service Companies (eu.ESCO) was founded in 2009 by the European Building Automation and Controls Association (eu.bac) and aims at boosting the energy services market by increasing its transparency and its trustworthiness.

Uncertainty, lack of knowledge, lack of awareness, and confusion concerning definitions, processes and contract provisions related to Energy Services Companies (ESCOs) and Energy Performance Contracting (EPC) are widely recognised as key barriers to further market development, according to research made by the Institute for Building Efficiency (IBE).

In this sense, eu.ESCO provides best practices and knowledge sharing to drive standardisation and to accelerate EPC use.

eu.ESCO’s Vision is: “A world where Energy Performance Contracting is recognised by public authorities as one of the key tools for energy efficiency in buildings

eu.ESCO’s Mission is: “To represent Energy Service Companies offering Energy Performance Contracting vis‐à‐vis European Institutions, other relevant European Stakeholders, Member States and public authorities

Major activities

  • Providing education, best practices sharing and knowledge transfer on ESCOs and EPC
  • Boosting the energy services market by increasing its transparency: information updates on ESCOs and their offerings, guarantee the quality of their services, etc.
  • Making energy services accessible and understandable by disseminating examples and case studies
  • Increasing customers’ confidence in ESCOs
  • Raising awareness on EPC potential, knowledge and usage
  • Facilitating interaction between ESCOs, policy‐makers and key stakeholders

Legislation

  • Energy Performance of Buildings Directive, EPBD (Directive 2010/31/EU)
  • Public Procurement, PP (Directive 2004/18/EC)
  • Eco-design of Energy-Related Products, EuP (Directive 2009/125/EC)
  • Directive on energy efficiency, EED (Directive 2012/27/EU)

While using the building standard procedures to determine the EPC potential – developed by the European Building Automation Controls Association (eu.bac) – EPC allows to fulfill both national legislations as well as European legislations (Directives and Regulations) on energy savings and enables public authorities to achieve a sustainable development and their environment goals.

Important Links

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What can BAC do for the Energy Union? What can policy do to leverage the benefits of BAC?

What can BAC do for the Energy Union? What can policy do to leverage the benefits of BAC?

The EU is building an Energy Union for a new energy system, and “energy efficiency first” is one Leitmotiv for all the good reasons. The current review of EU efficiency legislation needs to bring it to the ground, even if current headlines belong to Brexit, Syria, refugees.

In my view the review should think systems and link dots. Then it will contribute to finding answers for some tough challenges for the Energy Union: i) affordable and healthy housing for all, ii) integration of buildings into the wider energy system, iii) de-risking energy efficiency investments. The common denominator: using the full potential of BAC to get well-functioning systems in buildings and beyond is sine-qua-non for success.

How do we get there in practice? I think one key is to be clear what concrete products, functionalities and services are contained in the terms “BAC” and “smart buildings”. Perhaps BAC was a bit lost in the translation of technology into politics… So what can BAC do for the Energy Union? And what can policy do to leverage the benefits of BAC?

First, for me BAC stands for controls that empower citizens to control energy expenses. This is the first step for renovating buildings in the longer term towards near zero energy buildings. As an example for the heating systems, hundreds of millions of radiators equipped with purely manual controls, squandering energy and money, are a striking example that we have huge opportunities to reduce our energy bills and energy imports. New legislation should support that every radiator gets its thermostat now, saving billions of Euros and helping 50 Mio EU citizens threatened by energy poverty.

Second, for me BAC stands for management systems that monitor and optimize energy performance and comfort & productivity in real time, and link buildings into the wider energy system. They close the gap between expected and actual energy consumption, and maintain performance over time – a crucial factor for de-risking investments into energy efficiency. New legislation should recognize the benefits – energy savings, volatile renewable electricity integration to mention just two – and support technology progress to give the market regulatory certainty.

The Commission will present proposals for new efficiency legislation soon, and European Parliament and Council will then take a decision. The result will be decisive for the energy transition in buildings. I am looking forward to a constructive and lively cooperation across eu.bac in support of a successful outcome!

Stephan Kolb, EPBD leader, eu.bac`s Advocacy Panel

Head of Industry Affairs, Danfoss A/S, EU liaison office

stephan.kolb@danfoss.com

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