Environmental Engineering Reference
In-Depth Information
ciency
1
mea-
The International Energy Agency (IEA) estimates that energy ef
sures can reduce up to 10
15 % of global CO
2
per year at no additional cost [
14
].
Among the existing abatement options, the replacement of old windows and the
introduction of better insulation are considered as two of the most cost-effective
short term measures [
20
]. In fact, if the certain conditions are favorable [
16
] these
investments could promise high positive economic returns [
9
,
21
]. However, private
investments in energy ef
-
rst glance might seem economically
worthwhile are not always undertaken. This so-called
ciency that at
[
15
]
can be explained by existing barriers such as principal-agent problems, lack of
access to capital,
“
energy ef
ciency gap
”
cient information, among others. Understanding these
barriers is very important for the design of effective policies.
The ESCOs model is an interesting instrument that can help to overcome some of
the most important barriers mentioned at the same time. An Energy Service Com-
pany (ESCO) is a company that is engaged in developing, installing, and
insuf
nancing
comprehensive, performance-based projects that improve the energy ef
ciency or
load reduction of facilities owned or operated by customers [
2
,
23
]. ESCOs are seen
as an important vehicle for promoting energy ef
ciency around the world as many
case studies show [
18
,
24
,
25
]. Recent studies have also shown that the growth
potential for the ESCO industry in many different countries is remarkable. For
example, based on an a database of nearly 1,500 case studies of energy-ef
ciency
projects, it was estimated that ESCO industry revenues for energy-efciency related
services in the US ranged from $1.8 to $2.1 billion in 2001 and that ESCO revenues
increased at an average annual growth rate of 24 % during the last decade [
10
].
This chapter analyzes the possibilities and limitations in the implementation of
the ESCO model for the case study of the Barcelona municipal area in Spain. Our
aim is to select the instruments that are recommendable for the further development
of the ESCO market based on the experience in other countries and, once we have
seen to what extent they are implemented in Barcelona, propose how to unlock this
energy savings potential. The methodologies used in our analysis consist of qual-
itative data collection methods such as content analysis, semi-structured interviews
and a case study analysis. The semi-structured format was chosen because it offers a
“
perspective of the strengths and limitations of existing policies that are
designed to foster the use of the ESCO model. However, a comprehensive review
of the ESCO market in Catalonia, or a detailed examination of the relevant laws and
regulations that apply to this market, is beyond the scope of this analysis.
The chapter is organized as follows: Section
2
introduces the ESCO model and
how it can help to overcome the energy ef
bottom-up
”
ciency gap. Section
3
outlines the main
barriers to the development of this market, taking into account the political and
1
Energy ef
ciency and conservation are different concepts. Energy conservation is de
ned as:
“
the absolute reduction in energy demand compared to a certain baseline, measured in energy
units
; while energy ef
ciency refers to the improvement in the way energy is used to provide a
product or service, and it is measured in units of output per energy unit [
19
]. What people really
consume is not energy, but rather, energy services. Therefore, energy ef
ciency can help to
provide the same level of energy services using a lower amount of energy [
1
].
”
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