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Report on Experiences with ESCO contracting in Denmark and abroad prepared for the Danish Energy Agency by Rambøll

Press release   •   Jul 04, 2014 02:00 CEST

Energy renovation is usually associated with high initial costs and long term savings. A method of financing energy renovation projects is through an Energy Service Company (ESCO). An ESCO guarantees energy savings or future delivery of corresponding energy services at a lower price. Here the risks are transferred to the ESCO which has great knowledge about concrete improvements, subsequent energy savings as well as the associated risks. The report Experiences with ESCO contracting in Denmark and abroad by Rambøll summarizes the experiences from the ESCO model in Denmark and China.

The ESCO model is one of many approaches to energy renovation and there is about ten years of experience with the model in Denmark. The initial experiences with the ESCO model are positive and it represents a growing market. However, preparing efficient and simple guarantee models has proven challenging.

The report recommends further development of procedures for collaboration on verification, performance measurement and follow-up. A need for clear and practical examples of daily collaboration is identified. It is further recommended to involve stakeholders to discuss what is required to develop the market. 

Experiences with ESCO contracting in Denmark and abroad

Steffen Nielsen
Center for Global Rådgivning og Forhandling
Tlf.: 33 92 66 96