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The energy service gap: What does it mean?
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
2011 (English)In: ECEEE 2011 Summer Study; Energy efficiency first: The foundation of a low-carbon society: Conference proceedings, Stockholm Sweden: European Council for an Energy Efficient Economy (ECEEE), 2011, 649-656 p.Conference paper, Published paper (Other academic)
Abstract [en]

Through the formulation of the 2020-targets, the EU has set as objective to reduce the use of primary energy with 20 % by2020. The target is supposed to be reached through increasedenergy efficiency. Despite a large potential for energy efficiency, cost effective measures are not always implemented which isexplained by market failures and barriers to energy efficiency. This difference between potential energy-efficiency and what is actually implemented, is referred to as the energy-efficiencygap.

Energy service companies (ESCOs) have been put forth asa potential means of overcoming this gap to energy-efficiency.Well-functioning markets for ESCOs are therefore addressedas one of the key elements in the Energy Services Directive(ESD), a tool for the economy to move towards increased energy efficiency and sustainability. In other words, the developmentof the energy service market is of crucial importance if a Member State is to achieve the ambitious 2020-target.

The aim of this article is to analyse the market for energyservices towards industrial small- and medium sized Enterprises(SMEs). Focus will be on the Swedish market, howevergeneral conclusions may be drawn from this example. A large part of the potential for energy services is not being implemented today - this is identified as the energy-service gap. The gap is explained by transaction cost economics; relatively hightransaction costs for consulting ESCOs inhibit further marketdevelopment. The ESCO market in Sweden is estimated, by the Swedish state, to still be immature but have potential forfurther development. A government report does not identify the market barriers on the energy service market as market failures. By introducing market development mechanisms (e.g.standardized contracts and an accreditation system) the state could decrease the transaction and thus the energy service gap. Reducing the energy-service gap could be a cost effective wayof reducing the energy efficiency gap and reach the 2020-target.

Place, publisher, year, edition, pages
Stockholm Sweden: European Council for an Energy Efficient Economy (ECEEE), 2011. 649-656 p.
Keyword [en]
Energy efficiency, Energy Service, ESCO, Energy Efficiency Gap
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:liu:diva-71759ISBN: 978-91-633-4455-8 (print)OAI: oai:DiVA.org:liu-71759DiVA: diva2:453827
Conference
ECEEE 2011 Summer Study Energy efficiency first: The foundation of a low-carbon society, Belambra Presqu’île de Giens, France, 6–11 June 2011
Available from: 2011-11-10 Created: 2011-11-03 Last updated: 2014-11-20Bibliographically approved
In thesis
1. Efficient improvement of energy efficiency in small and medium- sized Swedish firms
Open this publication in new window or tab >>Efficient improvement of energy efficiency in small and medium- sized Swedish firms
2014 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This is a dissertation about efficient implementation of energy efficiency measures in small and medium-sized Swedish firms. The aim is to investigate the potential for economically efficient implementation of energy efficiency improvement measures in small and medium-sized firms. The thesis contains five papers that analyse different aspects that have been put forth in policy documents and academic debate as  methods to improve energy efficiency in non-energy intensive sectors.

By reading policy documents, interviewing representatives of small and medium- sized firms and energy auditors as well as analysing data from the Swedish energy audit program, different aspects of energy management practices, energy services and energy audits are considered. The thesis is the product of an interdisciplinary context but economic theory is at the foundation of the analysis and has helped formulate questions and hypotheses that have been tested and explored with the data.

The results show that while the potential for improving energy efficiency in the small and medium- sized sector in Sweden is large there are challenges to realizing it in each individual firm. There is potential for improving energy efficiency in the sector and not just for investments in new technology but also for adjusting existing machinery and changing behaviour, but costs for investigating the potential and implementing the measures are large relative to the improvement potential in each company. Energy management practices in this sector are lacking and energy services will only be demanded if reduction in production cost is estimated larger than transaction costs of the service. The Swedish energy audit program has led to the implementation of energy efficiency improvements in the participating firms but compared to other policy instruments it has been a less cost-efficient way to improve energy efficiency in Sweden.

Abstract [sv]

Detta är en avhandling om effektiv implementering av energieffektiviseringsåtgärder i svenska små och medelstora företag. Syftet är att undersöka och diskutera potentialen för att på ett ekonomiskt effektivt sätt öka implementering av energieffektiva åtgärder i svenska företag. Avhandlingen består av fem papper som analyserar olika aspekter som framförts som möjliga tillvägagångssätt för att öka graden av energieffektivitet i icke-energiintensiva sektorer.

Genom att studera styrmedelsdokument, intervjua representanter för små medelstora företag och energikartläggare samt att studera data från det svenska energikartläggningsstödet har potentialen för energiledning, energitjänster och energikartläggningar undersökts. Avhandlingen är en produkt av en tvärvetenskaplig kontext men med en ekonomisk teoretisk tyngdpunkt som hjälpt formulera frågeställningar och hypoteser.

Resultaten visar att trots att det finns en stor potential för att öka graden av energieffektivitet i svenska små och medelstora företag så är det svårt att komma åt den i enskillda företag. Det finns energieffektiviserings potentialer både i nya investeringar och i energiledningsåtgärder, som att justera teknik och ändra beteenden, men kostnaderna för att undersöka dessa potentialer och implementera åtgärder är stora relativt kostnadsbesparingarna i varje enskilt företag. Energiledningsrutiner brister i sektorn och energitjänster kommer enbart att efterfrågas om kostnadsminskningarna bedöms större än transaktionskostnader förknippade med tjänsten. Det svenska energikartläggningsstödet har lett till ökad implementering av energieffektiva åtgärder men kostnaderna är högre jämfört med andra styrmedel för att öka energieffektivitet i Sverige.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2014. 59 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1634
Keyword
Energy efficiency potential, small and medium- sized firms, energy management, energy audits, energy services, Energieffektiviseringspotential, små och medelstora företag, energiledning, energikartläggningar, energitjänster
National Category
Energy Systems
Identifiers
urn:nbn:se:liu:diva-112269 (URN)978-91-7519-179-9 (ISBN)
Public defence
2014-12-12, ACAS, A-huset, Campus Valla, Linköpings universitet, Linköping, 10:15 (Swedish)
Opponent
Supervisors
Available from: 2014-11-20 Created: 2014-11-20 Last updated: 2015-01-30Bibliographically approved

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