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Some hints on Energy Performance Contracing
This year, the European Commission launched the [Energy Performance Contracting Campaign (EPC)->] in cooperation with the Covenant of Mayors Office (CoMO). In this framework, the CoMO organises monthly, country-specific webinars on the topic and participated last January in the [ESCO 2013 conference->]. These activities provide occasions to better understand the EPC regulatory landscape, its challenges and opportunities.

Among initial conclusions and findings, it is worth noting that ESCO project development typically takes 8-12 months before a yes or no decision can be taken on the actual contract. Most of the ESCO business in Europe is in the public sector. Public procurement regulations thus have a major impact on EPC deployement. In this context, major hurdles notably include :

  • Lack of information on the facilities/buildings to be tendered
  • Public procurement culture
  • Uncertain legislative framework (stability and predictability of regulations are key to successful investments).

A survey sent to 1,000 municipalities in a German state recently found that less than 15% of them run an energy management system with at least monthly controlling of consumption and installations, though an important prerequisite for EPC contracts.

As it stands, the EU is set to achieve only half of its 20% energy efficiency target. It is thus of crucial importance that national governments and municipalities go the extra mile to make the necessary savings.

By way of example, the London public building retrofit programme RE:FIT resulted in a 20% average energy savings (with over 100 buildings covered so far), with support provided to project preparation and supplier selection.

    >> Covenant Monthly Newsletter April 2013 <<
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  The sole responsibility for the content of this newsletter lies with the Covenant of Mayors Office. It does not necessary reflect the opinion of the European Union. The European Commission is not responsible for any use that may be made of the information contained therein. The Covenant of Mayors was set up with financial support of the European Commission and consists of five associations of European local authorities: Energy Cities, Climate Alliance, Eurocities, CEMR, and Fedarene.

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