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Task 16 - Competitive Energy Services (Energy Contracting, ESCo Services)

Synopsis | Background and Motivation | Objectives of Task XVI-Extension | Expectations and Results | Structure of the Work – Subtasks | Activity time schedule | Contacts | Participation | Publications

Synopsis

Energy Contracting - also labeled as ESCo or Energy Service (ES) – is a many times proven DSM instrument to implement energy efficiency measures for lighting, HVAC-technologies or even comprehensive refurbishment of buildings. An Energy Service Company (ESCo) takes over the technical and commercial implementation and operation risks and has to guarantee for it’s cost and results. ESCo services are also well suited to implement innovative energy technologies and renewable energy systems.
In this Task experts from Austria, Belgium, Finland, India, Japan, Netherlands and Spain join forces to contribute to the market development of Energy Services by:
1. establishing an Energy Services Expert Platform,
2. designing, elaborating and testing innovative energy services and financing models and to publish them in a series of manuals,
3. developing and following up on country specific activities for implementing energy services in the market with a focus on selected market segments and
4. offering expertise and initiating joint projects and services with other international organizations (e.g., presentations, coaching and training).
Participation in Task XVI-Extension is open to 1 or 2 additional countries. For further info you may contact the operating agent Bleyl@grazer-ea.at or download a task flyer (Publications).

Background and Motivation

The success of further increasing energy efficiency in all sectors of consumption plays a vital role in coping with the challenges of our common energy future. Avoiding energy consumption by increasing end-use efficiency is a highly effective way to meet all three key targets of energy policies: Security of supply, affordable costs of energy services and environmental soundness.

But what are the appropriate instruments to bring energy efficiency to the end-user? One of the most urgent energy policy and energy economics challenges continues to be the search for suitable “tools” to execute energy conservation potentials. The level of success is far from satisfactory as the continuous increase in final energy consumption reveals. Now and for the foreseeable future there is an urgent need to conclude and support all suitable political, regulatory and market based instruments for the implementation of Energy Efficiency and Renewables. 

The ESCo industry is an expanding business throughout the world contributing to the improvement of energy efficiency, control of energy costs and reduction of greenhouse gas and other emissions. The models of offering these services can get various forms like Energy Supply Contracting (ESC) or Energy Performance Contracting (EPC) resulting in diverse contract models and financing arrangements. Our view of the basic features of “real” Energy-Contracting projects can be downloaded  here: IEA-dsm-TaskXVI_Task-Flyer_100210.pdf.

   

What is Energy Contracting? An integrated service with results guaranteed.

 

Task XVI serves as a research and expert platform, while national experts carry out individual national implementation activities. The results of Task XVI are discussed and disseminated in a series of stakeholder workshops, publications, presentations at conferences and workshops.

 

Energy contracting activities have been started in different segments of energy consumption in different countries. White areas on the market map are gradually being covered by existing and new enterprises. Nevertheless Energy Contracting still is a complex product, which can not be sold or procured easily in the markets. As it is the case with energy efficiency in general. In many other countries markets are still immature and in a developing stage. There are many reasons to take the work of Task XVI further on the way towards developed energy service markets:

ü  National implementation activities of energy efficiency implementation still face numerous obstacles. There is an urgent need to support all suitable political, regulatory and market based instruments for the implementation of Energy Efficiency and Renewables. This is where the Task XVI extension wants to pay it’s contribution. Realized energy supply contracting projects typically achieve 15-20 % efficiency improvements on the supply side. Energy performance contracting projects have realized efficiency gains of 20-30 % and the integrated contracting approach or comprehensive refurbishment model achieves 30 to 50%. CO2-Emission reductions are in many cases above 50 % because of a change of energy carriers to lower carbon content or renewables.

ü  Energy contracting models focus on implementation of any existing or innovative energy efficiency and renewable energy technology. Energy contracting models have an interdisciplinary approach incorporating many aspects of the implementation process, such as economical, financing, organizational, legal and technological issues in order to achieve guaranteed performance and results of the efficiency technology deployed. Further research is needed in a number fields on the way to more competitive energy service products and market development, e.g. integrating demand side efficiency measures into supply contracting models or tools for (public) procurement of energy services.

ü  The Task XVI Energy Services Expert Platform has worked successfully over the last three years. The platform will continue to serve the country experts exchange and networking, to support national implementation activities and communication with their stakeholders and to provide access to innovative and competitive Energy service models and tools from the Think Tank.

Task XVI has received considerable interest in its previous work, expressed in a number of invitations to conferences and workshops to more than ten IEA as well as non IEA countries. Also the task work itself benefits from feedback on its publications. This international and national dissemination activity of IEA DSM work should be taken further and will also enhance the visibility of the DSM programme as a whole.

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Objectives of Task XVI-Extension

In order to contribute to the future market development of Energy Contracting the objectives of Task XVI are:

1.    To establish an IEA dsm energy services expert platform

2.    To design, elaborate and test innovative energy contracting and financing models and publish them

3.    To support and follow up country specific activities to disseminate and implement energy services in the market

4.    To position the expert platform as a competence centre for energy services for international and national dissemination and assistance services (e.g. coaching, training courses, publications) and to contribute to an “IEA DSM Centre of Excellence”

The underlying goal is to increase understanding of Energy Contracting as a tool to implement energy efficiency projects: Pros and cons, potentials, limits and added values of ESCo products in comparison to in-house implementation.

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Expectations and Results

The following benefits for the participating countries and can be expected:

ü  Enlarging the market for energy services in the participating countries

ü  Building up know-how and capacity on innovative and competitive energy services and financing models (exclusive and first hand information)   

ü  Developing business opportunities for national and internationally acting ESCOs

ü  Participation in the IEA DSM energy services expert platform and communicating with external stakeholders

ü  Adoption of the manuals on energy services and financing models, translated for use in the participating countries

ü  Mutual feedback, coaching and experience exchange for developing country specific market development activities (lessons learned in other countries)

ü  Developing business opportunities for internationally acting ESCOs

ü  Active role of the IEA DSM agreement in international dissemination of ES and assistance services beyond the scope of the current member countries

Key accomplishments of Task XVI
The Think Tank has worked on a variety of topics which have led to five key publications:

ü  “Integrated Energy Contracting. A new ESCo Model to Combine Energy Efficiency and (Renewable) Supply in large Buildings and Industry” (091026_T16_Integrated Energy Contracting_GEA_Bleyl.pdf)

ü
 
“Financing Options for Energy-Contracting Projects - Comparison and Evaluation” - A Manual for ESCos, ESCo Customers and ESCo Project Developers including Good Pracitce Examples and Calculation Tool (101126_GEA-T16_Finance Options for Energy-Contracting incl Examples.pdf)

ü  “Opportunity Cost Tool for Estimation and Visualization of Monetary Saving Potentials” (Bleyl_Opportunity Cost Tool-presenation_070510.pdf)

ü  “Comprehensive Refurbishment of Buildings through Energy Performance Contracting” - A Guide for Building Owners and ESCos including Good Practice Examples (100609_GEA-T16_CR of Buildings through EPC incl good practice_Bleyl, Schinnerl.pdf)

ü  “Energy-Contracting: How much can it contribute to Energy Efficiency in the Residential Sector” (090709_T16_EC residential market_IAEE09 abstract_GEA_Bleyl.pdf)

 

6 Energy Service Expert Platform dissemination workshops were held in Brussels, Helsinki, New Delhi, Deventer, Graz and Vienna during phase 1.

National Implementation Activities were carried out according to the individual plans of country experts and activities were reported and reviewed at the platform meetings. Ongoing activities can be integrated into the NIA's.

 

 

 

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Structure of the Work – Subtasks

To achieve the project goals, the Task XVI-Extension Work Plan consists of four main components:

1.    IEA DSM energy services expert platform (ES-platform, subtask 3)

2.    Innovative and competitive energy services think tank (Think Tank, subtask 4)

3.    National implementing activities (NIAs, subtask 5)

4.    International dissemination activities (subtask 6)

The following scheme illustrates the general structure and workflow of the task:



IEA dsm Task XVI-Extension: Structure and work packages

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Activity time schedule

Task XVI has started operation in July 2006 and terminated phase 1 in June 2009. The IEA dsm ExCo has decided an extension of Task XVI for a three year period from July 2009 to June 2012.

An overview of the subtasks including milestones is displayed in the following figure.



Task XVI-Extension timetable and milestones

Please send inquiry for current events to
Bleyl@grazer-ea.at.

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Contacts

Austria

Jan W. Bleyl (Operating agent and NE)
Email:
bleyl@grazer-ea.at
Tel: +43-316-811848-20

Daniel Schinnerl (national expert)
Email: schinnerl@grazer-ea.at

Tel: +43-316-811848-15

Grazer Energieagentur GmbH
Kaiserfeldgasse 13
8010 Graz

Belgium

Lieven Vanstraelen (National expert)
Email:
lieven.vanstraelen@fedesco.be
Tel: +32-2-76202-80

Fedesco
Avenue de Tervuren 168 Bte 9
1150 Bruxelles

Johan Coolen (National expert)
email: johan.coolen@factor4.be

Tel: +32(0)3/225.23.12

Factor4

Lange Winkelhaakstraat 26

2060 Antwerpen

Finland (until June 2009)

Seppo Silvonen (Co-Operating agent)
Email:
seppo.silvonen@motiva.fi
Tel: +358-424-281-232

Pertti Koski (National expert)
Email:
pertti.koski@motiva.fi
Tel: +358-424-281-217

Motiva Oy
P.O.Box 489
00101 Helsinki
Fax: +358-424-281-299

India

Srinivasan Ramaswamy (NE 10/2009)
Email:
srinivasan.ramaswamy@gtz.de
Tel: +91-11-26179699

Abhishek Nath (NE until 10/2009)
Email:
abhishek@teri.res.in
Tel: +91-11-2617-9699

Bureau of Energy Efficiency
4th Floor, Sewa Bhavan, R.K. Puram
New Delhi -110066, India
Fax:  +91-11-2617-8352

Japan (Sponsor until June 2009)

Takeshi Matsumura (National expert)
Email:
matsumura@j-facility.com
Tel: +81-3-522929-22

Japan Facility Solutions, Inc.
1-15 Kagurazaka
Shinjuku-ku, Tokyo
162-0825, Japan
Fax: +81-3-5229-2912

Netherlands

Ger Kempen (National expert)
Email:
ger.kempen@essent.nl
Tel: +31-43-36903-53

Essent Retail Services BV
Withuisveld 7
6226 NV Maastricht
Fax: +31-43-369-0359

Spain (since July 2009)

Andrés Sainz Arroyo (National expert)
Email:
asainz@ree.es
Tel. +34-91-650 20 12 ext. 2252

Red Eléctrica de España
Dpto. Gestión de la Demanda
Paseo del Conde de los Gaitanes, 177
28109 Alcobendas, Madrid, Spain

Borja Herrero Ruiz (National expert)
Email:
bherrero@hitachiconsulting.com
Tel. +34-91-7883100

Hitachi Consulting
Orense, 32
28020, Madrid, Spain

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Participation

Task XVI

Austria

 

Belgium

Finland

India

Japan

Netherlands

 Spain

 

Operating Agent

 

Participating Country

 

Task XVI is open for participation. Check for conditions on our participation page.

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Publications

Comprehensive Refurbishment of Buildings through Energy Performance Contracting
[2401 kb]
 A Guide for Building Owners and ESCos including Good Practice Examples; 2nd Edition; Jan W. Bleyl-Androschin, Daniel Schinnerl, both Grazer Energieagentur...
Financing Options for Energy-Contracting Projects - Comparison and Evaluation
[3049 kb]
 A Manual for ESCos, ESCo Customers and ESCo Project Developers including Good Practice Examples and Calculation Tool; 2nd Edition; Jan W. Bleyl-Androschin, Daniel Schinnerl, both Grazer Energieagentur...
Task XVI Flyer "Competitive Energy Services (Energy Contracting, ESCo Services)"
[49 kb]
 2 page overview of IEA dsm Task XVI...
Conservation First! The New Integrated Energy-Contracting Model Combine Energy Efficiency and Renewable Supply in Large Buildings and Industry (ECEEE '11 paper)
[272 kb]
 This contribution introduces a new, market based implementation model for energy efficiency and supply (preferably from renewables), labelled as Integrated Energy Contracting (IEC). IEC builds on the ...
Integrated Energy Contracting (IEC). A new ESCo Model to combine Energy Efficiency and (Renewable) Supply (IEA dsm Task XVI discussion paper)
[2233 kb]
 Task XVI - A new ESCo Model to Combine Energy Efficiency and (Renewable) Supply in large Buildings and Industry - Discussion Paper - October 2009 - Jan W. Bleyl-Androschin, Graz Energy Agency Ltd....
Ganzheitliche Gebäudesanierung mit dem integrierten Energie-Contracting Modell am Beispiel der LIG Steiermark (IEA dsm Task XVI Discussionspapier)
[2624 kb]
 Task XVI - Ein neues Geschäftsmodell zur Umsetzung von Energieeffizienz und (erneuerbare) Energielieferung für große Gebäude und Gewerbebetriebe - Diskussionspapier - September 2009 - Jan W. Bleyl-And...
How much Energy Efficiency can Energy Contracting deliver to the Residential Sector in Germany? (ECEEE'09 + IAEE'09 paper)
[23 kb]
 Task XVI - Transaction and Life Cycle Cost Analyses, Market Survey and Statistical Potential - July 2009 - Jan W. Bleyl-Androschin, Graz Energy Agency Ltd.; Dr. Bernd Eikmeier, Bremer Energie Institut...
Comprehensive Refurbishment of Buildings through Energy Performance Contracting (IEA dsm Task XVI discussion paper)
[706 kb]
 Task XVI - A Guide for Building Owners and ESCos - Nov 2008 - Jan W. Bleyl-Androschin and Daniel Schinnerl, both Graz Energy Agency Ltd....
Comprehensive Refurbishment with Energy Contracting (ECEEE '07 paper)
[422 kb]
 Comprehensive Refurbishment of Buildings with Energy Contracting/Services (ECEEE '07 paper) by DDI Jan W. Bleyl, Task XVI Operating Agent (Bleyl@grazer-ea.at ) and DI (FH) Daniel Schinnerl (Schinnerl...
Opportunity Cost Tool & Comparison and Evaluation of Financing Options for Energy-Contracting Projects (IEA dsm Task XVI discussion paper)
[1289 kb]
 Task XVI - A manual for ESCOs, ESCO customers and ESCO project developers. 1. Despcription of a methodology to compare finance options for energy service projects and 2. Opportunity Cost Tool: Est...
Comparison of Finance Options for Energy Services and Innovative Leasing Examples (BPC'06)
[261 kb]
 Introduction of a methodology to compare finance options for energy service projects and presentation of innovative leasing finance examples (Building Performance Congress paper). by DDI Jan W. Bleyl...
Opportunity Cost Tool (short presentation)
[809 kb]
 Opportunity Cost Tool: Estimation and Visualization of Energy Costs, Saving Potentials and Future Energy Cost Savings for the development of energy-contracting projects, by DDI Jan W. Bleyl, Task XV...
Finanzierungsmodelle für Energiedienstleistungen (Contracting) (IEA dsm Task XVI Diskussionspapier)
[604 kb]
 Task XVI - Ein Leidfaden für Gebäudeverantwortliche, Contracting-Unternehmen, Projektentwickler und Finanzierungsinstitute - Jänner 2008 - Jan W. Bleyl-Androschin und Daniel Schinnerl, Grazer Energiea...

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