Integrated energy services: the panacea for energy efficiency? - An analogy with the car service market

Panel: Panel 5: Energy Efficiency Markets & Financing Mechanisms

Authors:
Jérôme Adnot, Ecole des Mines de Paris
Carlos Lopes, Ecole des Mines de Paris
Lionel Cauret, INESTENE

Abstract

It is said that in a liberalised market electricity utilities will become spontaneous providers of genuine energy services (e.g. lit or heated spaces), and that this transformation will naturally lead to a more efficient use of energy. In this paper, we challenge this view. In fact, the energy-related services proposed by the electricity industry appears more oriented to any value added commercial services that contribute to expand the industry's activities, and increase revenues and profits from energy sales. Among the large set of services proposed, there are services that do increase the efficiency of energy use. However, these services are generally subordinated to global commercial objectives.

This paper focuses on the offer of services to households, and the highly regulated French context is used as a case study. In the literature, when discussing energy services, a recurrent analogy is the business related to repair and refuel of cars, which is considered as a mature energy service market. This analogy is developed in this paper.

The paper analyses six specific groups of services in two markets - house and car related energy services. This analysis focuses on both technical and marketing aspects. The analysis carried out and the analogy made contribute to identify services with an energy efficiency content, and to discuss if the "one-stop shop" model is available and favourable to energy efficiency. Finally the need for support mechanisms that help the consumer identify the development of energy efficiency services is discussed.