Environmental Engineering Reference
In-Depth Information
Budget-Neutral Financing to Unlock
Energy Savings Potential: An Analysis
of the ESCO Model in Barcelona
Samuel Bobbino, H
é
ctor Galv
á
n and Mikel Gonz
á
lez-Eguino
Abstract The objective of this chapter is to introduce an increasingly popular
business model known as the Energy Service Company (ESCO) model and bring to
light the principal barriers to its widespread implementation both from the public
and private perspectives. The ESCO model is essentially a
“
budget neutral
”
method
of
nancing the purchase, installation and maintenance of energy ef
cient tech-
nologies. This concept, which incorporates notions of
“
third-party
nancing
”
and
“
has been used successfully for quite some time
in countries like the USA, the UK, and Germany. In this chapter, we will analyze
the possibilities and limitations in the implementation of the ESCO model in a
speci
energy performance contracting,
”
c case study: the Barcelona municipal area in Spain.
1 Introduction
The growing demand for energy and the necessity to cut global greenhouse gas (GHG)
emissions are the two foremost issues related to designing energy and environmental
policies [
8
]. Nowadays, energy consumption accounts for around 85 % of global
carbon dioxide (CO
2
) emissions worldwide, and it is at the heart of the transformation
needed to move towards a low carbon economy. There is now a worldwide concur-
rence that the development and diffusion of a wide range of new technologies is an
important mechanism to confront climate change and energy scarcity.
We would like to express our thanks to all of the interview respondents who took the time to
discuss essential issues with us and provide suggestions for our research. They enabled us to
form realistic and current perspectives, both from the public and private spheres.
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