The European ESCO market: recent trends, market sizes, barriers and drivers and the remaining market potential

Panel: 2. Energy efficiency policies – how do we get it right?

This is a peer-reviewed paper.

Authors:
Benigna Boza-Kiss, Central European University, Hungary
Paolo Bertoldi, European Commission, Joint Research Center, Italy
Strahil Panev, European Commission, Joint Research Center, Italy

Abstract

As part of the regular pan-European survey of Energy Service Companies (ESCOs) and their markets, a wide-scale experts-based market research was carried out by the European Commission, Joint Research Center in 2013.

The paper compares the key indicators and market specificities of the ESCO markets of the EU and its neighbouring countries, in particular related to the size of the markets, the number of actors and structural changes in the markets since 2010. The most important success factors and market barriers are explained with country-specific indications.

In general, a growing trend was observed throughout of the national ESCO markets of Europe between 2010 and 2013. The strongest growth was experienced in Denmark, France, Ireland and Spain, while Hungary appears to be the sole EU country affected by a clear decline. Development – where it happened – was noted in volume, complexity and/or maturity. ESCOs have also foraged in areas where they were inactive before. Nevertheless, the markets are far from reaching their potential.

As of today, the ESCO markets are driven as much by market forces (i.e. increasing energy costs, growing interest from potential clients, development of partnership between players), as by dedicated policy measures, regulations and financial solutions. Interestingly the list of drivers is similar in many countries, but the leveraging success factors and the leading barriers are diverse.