Tapping the Potential for Energy Efficiency: The Role of ESCOs in the Czech Republic, Ukraine and Russia
Energy service companies have played a significant role in stimulating energy efficiency in many industrialized countries, including the United States. Many policymakers and development experts consider energy performance contracting an important mechanism for boosting energy efficiency in other countries as well. The experience of ESCOs in transition economies, however, is decidedly mixed. The Czech Republic has been able to foster a thriving ESCO industry with numerous players competing for business, although ESCOs have encountered problems along the way. In Russia and Ukraine, ESCOs have developed slowly, and few true performance contracts exist. This paper reviews the experience of ESCOs in the Czech Republic, Ukraine and Russia and then explores the factors shaping the diverse trends in these countries. The paper draws on the experience of the national energy efficiency centers, development banks, bilateral assistance organizations and individual ESCOs in promoting ESCO industries. Factors that have influenced ESCOs to date include the economy, the price of energy, the financial situation of potential clients, the legislative basis for ESCO activities, the business experience of ESCO staff and access to information about the ESCO concept. Financing has also proven to be a critical factor in developing ESCOs. Lack of project financing and guarantees, for example, is a major problem in the former Soviet Union. The paper concludes by drawing recommendations for policymakers and industry on promoting ESCOs.
- Research Organization:
- Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
- Sponsoring Organization:
- USDOE
- DOE Contract Number:
- AC05-76RL01830
- OSTI ID:
- 965175
- Report Number(s):
- PNNL-SA-34707; TRN: US200920%%264
- Resource Relation:
- Conference: 2000 ACEEE Summer Study on Energy Efficiency in Builidings Proceedings, Panel 5
- Country of Publication:
- United States
- Language:
- English
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