How to develop profitable energy efficiency services and accelerate market growth

Abstract : A main objective of the Directive 2006/32/EC on energy end-use efficiency and energy services (ESD) is to stimulate the market for energy services and the delivery of energy efficiency improvement measures to final consumers. An interpretation of this objective is simple: To support the development of the markets for energy efficiency services (EES). However, the development of the EES markets raises several questions: Can these markets become an effective instrument for increasing energy efficiency? Who will be the main actors in these markets? How can these actors successfully develop new EES business models for the customers that lead to an additional market growth? How can they become profitable? And how should policies and measures be designed to stimulate EES markets? Since 2009, within the framework of the "Intelligent Energy - Europe" programme of the European Commission, the project ChangeBest, has contributed in answering to these questions. The ChangeBest project assists different types of EES providers in entering the EES market and demonstrates good practice. In the ChangeBest project, there are 40 field test partners (energy companies, ESCOs and other EES providers as well as EES project facilitators) from 16 European Member States. These field test partners have developed and designed new EES ideas and business cases, which are currently tested in the market. This paper analyses the existing EES market situation in the EU countries and the potential market volume available for new EES. Then it discusses the practical experiences made so far in the ChangeBest field tests: How EES could be successfully developed and how EES development is linked to political-administrative framework conditions. Based on this information, the paper observes effects of existing policy measures on EES market development and gives recommendations on policies and measures supporting EES market growth.