Thesis (MBA (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: It has been established worldwide that energy efficiency undertakings are the fastest, most cost-effective and cleanest way to extend energy supplies. When the energy supply made available through energy efficiency projects are compared with increasing primary supply through building new conventional generation facilities, the former is in most cases also safer, more reliable and a more secure form of investment. Energy service companies (ESCOs) are the recognised implementation vehicles of energy efficiency projects and have been in use internationally for many years for this purpose. Globally, however, ESCOs do not have a good history of being viable business enterprises. The most important barriers identified internationally hindering ESCOs’ growth and sustainability were the potential customers’ lack of awareness, information and understanding regarding energy efficiency projects, the financing of these projects, as well as the support of government on energy efficiency policies and regulations. The urgency of implementing energy efficiency measures in South Africa is critical based on the precarious situation of the national electrical suppliers’ ability to provide electricity unfailingly to all its current and future customers. The South African electrical energy situation should therefore provide tremendous opportunities to the local ESCO industry. The aim of this study was therefore to reiterate the importance of energy efficiency projects and to describe the barriers to growth and sustainability experienced by ESCOs in South Africa against the international backdrop. This was done by way of a survey sent out to all registered ESCOs in South Africa. Based on the responses to the survey, the South African industry is in dire straits and is hindered by various barriers to their growth and sustainability. The study identified eight major barriers in the South African ESCO industry which are similar to those experienced by ESCOs internationally. The uniqueness of the local barriers however, is that the industry operates in a highly regulated environment and that these regulators, being the government and Eskom, are recognised as the main perpetrators responsible for most of these barriers, largely due to a lack of dedicated action. Furthermore, the study shows that it is critical for all role players in the South African energy efficiency industry, and specifically the South African government and Eskom, to recognise these barriers and to assist in solving them to improve the growth opportunities in the ESCO industry. Removal of these barriers will not only improve the electricity situation, but will also have a number of positive effects on the micro and macro-economic levels of South Africa, as well as the environment. Finally, the study makes suggestions about the way forward through a number of actions to be taken to lower or remove the most important of these barriers. / AFRIKAANSE OPSOMMING: Dit is reeds wêreldwyd bevestig dat energie-effektiwiteitsprojekte die vinnigste, kostedoeltreffendste en omgewingsvriendelikste manier is om energiebronne uit te brei. Wanneer die energieverskaffing wat beskikbaar gestel word deur energieeffektiwiteitsprojekte vergelyk word met die vermeerdering van primêre energie deur die bou van nuwe konvensionele opwekkingsfasiliteite, is eersgenoemde in die meeste gevalle ook veiliger en ’n meer betroubare en stabiele beleggingsvorm. Energie-diensmaatskappye (energy service companies (ESCOs)) is die erkende implementeringsmediums vir energie-effektiwiteitsprojekte en word reeds baie jare lank internasionaal vir hierdie doel aangewend. ESCOs het egter wêreldwyd nie ’n goeie rekord as lewensvatbare sake-ondernemings nie. Die vernaamste hindernisse wat ESCOs se groei en welvaart stuit is internasionaal geïdentifiseer as voornemende kliënte se gebrek aan bewustheid, inligting en begrip rakende energie-effektiwiteitsprojekte, die finansiering van sodanige projekte, asook die ondersteuning van die regering ten opsigte van energieeffektiewiteitsbeleide en -regulasies. Daar is groot dringendheid om energie-effektiewe projekte en maatreëls in Suid Afrika te implementeer, gebaseer op die huidige onsekerheid of die nasionale elektrisiteitsverskaffer wel in staat is om ’n betroubare bron van elektrisiteit aan sy huidige en voornemende kliënte te voorsien. Die Suid Afrikaanse elektriese energie situasie behoort daarom heelwat geleenthede te skep vir die plaaslike ESCO-industrie. Die doel van hierdie studie was dus om die belangrikheid van energie-effektiwiteitsprojekte te beklemtoon en om die hindernisse te omskryf wat ESCOs in Suid Afrika se groei en welvaart stuit, gesien vanuit ‘n internasionale perspektief. Dit was gedoen deur ‘n vraelys aan alle geregistreerde ESCOs te stuur. Na aanleiding van die terugvoering op die vraelyste, sukkel hierdie industrie om kop bo water te hou weens verskeie hindernisse wat hulle groei en welvaart stuit. Hierdie studie identifiseer agt belangrike hindernisse in die Suid-Afrikaanse ESCO industrie wat ooreenstem met die wat deur internasionale ESCOs ondervind word. Die uniekheid van die plaaslike hindernisse is egter dat die industrie werksaam is in ‘n streng gereguleerde omgewing en dat die reguleerders, die regering en Eskom, ook uitgewys word as die vernaamste skuldiges wat verantwoordelik is vir meeste van die hindernisse, hoofsaaklik as gevolg van hulle gebrek aan toegewyde uitvoering van take. Die bevindinge van hierdie studie toon verder dat dit krities is vir al die rolspelers in die Suid-Afrikaanse energie-effektiwiteitsindustrie, spesifiek die Suid-Afrikaanse regering en Eskom, om hierdie hindernisse te erken en om saam te werk om hulle te oorkom en sodoende die groeigeleenthede in die ESCO-bedryf te verbeter. Die verwydering van hierdie hindernisse sal nie alleen die elektrisiteitsituasie verbeter nie, maar sal ook ’n aantal positiewe invloede hê op die mikro- en makro-ekonomiese vlak van Suid-Afrika, sowel as die omgewing. Die studie sluit af met voorstelle rakende die uitvoering van verskeie aksies wat die verwydering van die vernaamste hindernisse tot gevolg sal hê, of die hindernisse se impak op die industrie sal verminder.

The energy service industry is a newly emerging industry in Taiwan, where related regulations and measures are still at an immature stage. The business operation models include being a motivator in regard to energy conservation, becoming an ESCO, or developing strategies covering both areas. The implementation will help present energy users to break through existing bottlenecks involving: funds, manpower, technology, and recycling term; change the environment where the Government is currently the main motivator; and attract private companies to participate in energy saving and carbon reduction. First, topics for in-depth interviews were established in order to obtain a better understanding of the operational environment of ESCOs in Taiwan, including any obstructions encountered during the development of the ESCO industry. Second, in-depth interviews were carried out with selected ESCOs via explorative research and quantitative methods. The interview data were analyzed and discussed. The following results were obtained regarding the domestic ESCO industry: 1. The status of current development and business opportunities is promising. 2. Factors affecting current development include the lack of regulations, subsidizing plans, third party authentication, energy-saving technologies, and financing solutions. 3. The financing difficulties include: insufficient collateral, sound financial reports, or banks¡¦ understanding of the ESCO industry. 4. The key success factors for the domestic ESCOs to enter the global ESCO market include: the accuracy of the energy-saving reports and income estimates, provision of integrated energy-saving technologies, and utilization of the small and medium business credit guarantee funds and loans. 5. Business models that best suit the development of domestic ESCOs include: sharing energy, performance guarantees, and equipment lease.

A rapid growth in the national electricity demand is placing an ever-increasing demand on the national electricity supply utility, Eskom. Projections show that the load demand in South Africa may exceed the installed capacity by as early as 2007. This is mainly due to the increase in demand in the residential sector as a result of the electrification of rural and previously disadvantaged communities. However, the industrial and commercial sectors also have a role in this increase. In an attempt to reduce the demand for electricity Eskom has adopted its Demand Side Management (DSM) initiative. This initiative is aimed at lowering the electricity demand in peak times through energy efficiency (EE) or load shift, out of peak demand times. Eskom is implementing the DSM strategy by financing Energy Service Companies (ESCOs) to reduce the demand load of major electricity end-users during peak times. Buildings consume a large percentage of the total energy supply in the world. Most of the energy consumed in buildings is used by the heating, ventilation and air-conditioning (HVAC) systems, as well as lighting. However, a large potential for energy savings exists in buildings. Studies have shown that up to 70% of the electricity consumption of a building can be saved through retrofit studies. However, to capitalise on these opportunities, the ESCOs require tools and procedures that would enable them to accomplish energy savings studies quickly and efficiently. It should be a holistic approach to the typical ESCO building audit. A study of current available software programs showed the lack of holistic tools aimed specifically at retrofit audits, and therefore also the need for such a program. The building simulation program most suited to the retrofit study was chosen and it was used in a retrofit audit. By emulating a retrofit audit with this software, its performance in the field, both positive and negative, could be established. With the experience gained from the retrofit study, as well as input from ESCOs in the industry, a need for such a retrofit tool was established. The simulation program that was tested in the retrofit study is the tool Quickcontrol, as well as the newer version of the program, entitled QEC. The case study showed that even though these packages are well suited to ESCO work, they have certain drawbacks in view of the holistic project approach. The ESCOs require a simple, fast, and integrated procedure for energy audits. This procedure should be embodied in a software program. This study proposes a new integrated procedure for energy audits and the analyses of buildings, in the form of a software tool. This new tool is geared towards the ESCO building audit, in both South A6ica and internationally. It is designed to enable a diplomate engineer to accomplish a building energy and retrofit analysis in two weeks, leading the user through all the main project steps, from data acquisition to writing of the final project report. This is a significant improvement, since it normally takes 50 man-days for an experienced and trained engineering team to complete a full building audit. This tool was used in a case study to test its validity and accuracy. It was found that certain situations would arise in which the criteria that were set for the program would not be adequate. The results from the case study were favourable and satisfied the criteria that were set for the procedure. / Thesis (Ph.D. (Mechanical Engineering))--North-West University, Potchefstroom Campus, 2004.

A rapid growth in the national electricity demand is placing an ever-increasing demand on the national electricity supply utility, Eskom. Projections show that the load demand in South Africa may exceed the installed capacity by as early as 2007. This is mainly due to the increase in demand in the residential sector as a result of the electrification of rural and previously disadvantaged communities. However, the industrial and commercial sectors also have a role in this increase. In an attempt to reduce the demand for electricity Eskom has adopted its Demand Side Management (DSM) initiative. This initiative is aimed at lowering the electricity demand in peak times through energy efficiency (EE) or load shift, out of peak demand times. Eskom is implementing the DSM strategy by financing Energy Service Companies (ESCOs) to reduce the demand load of major electricity end-users during peak times. Buildings consume a large percentage of the total energy supply in the world. Most of the energy consumed in buildings is used by the heating, ventilation and air-conditioning (HVAC) systems, as well as lighting. However, a large potential for energy savings exists in buildings. Studies have shown that up to 70% of the electricity consumption of a building can be saved through retrofit studies. However, to capitalise on these opportunities, the ESCOs require tools and procedures that would enable them to accomplish energy savings studies quickly and efficiently. It should be a holistic approach to the typical ESCO building audit. A study of current available software programs showed the lack of holistic tools aimed specifically at retrofit audits, and therefore also the need for such a program. The building simulation program most suited to the retrofit study was chosen and it was used in a retrofit audit. By emulating a retrofit audit with this software, its performance in the field, both positive and negative, could be established. With the experience gained from the retrofit study, as well as input from ESCOs in the industry, a need for such a retrofit tool was established. The simulation program that was tested in the retrofit study is the tool Quickcontrol, as well as the newer version of the program, entitled QEC. The case study showed that even though these packages are well suited to ESCO work, they have certain drawbacks in view of the holistic project approach. The ESCOs require a simple, fast, and integrated procedure for energy audits. This procedure should be embodied in a software program. This study proposes a new integrated procedure for energy audits and the analyses of buildings, in the form of a software tool. This new tool is geared towards the ESCO building audit, in both South A6ica and internationally. It is designed to enable a diplomate engineer to accomplish a building energy and retrofit analysis in two weeks, leading the user through all the main project steps, from data acquisition to writing of the final project report. This is a significant improvement, since it normally takes 50 man-days for an experienced and trained engineering team to complete a full building audit. This tool was used in a case study to test its validity and accuracy. It was found that certain situations would arise in which the criteria that were set for the program would not be adequate. The results from the case study were favourable and satisfied the criteria that were set for the procedure. / Thesis (Ph.D. (Mechanical Engineering))--North-West University, Potchefstroom Campus, 2004.

Energy Performance Contracting is an energy saving method, when the supplier guarantees a certain minimal level of energy savings to the customer, as well as non-rising energy costs. The method was developed at the turn of 70's and 80's in the USA and has spread to dozens of countries around the world till today, although the rate of the EPC market development differs from country to country. The method is useful mostly for heating, electricity and gas cost savings by the end-users. In the Czech Republic, the method has been used since 1993. Until now, several dozens, or even hundreds of projects have been realized, mostly for public sector customers. This paper analyzes the current state of the EPC method usage around the world as well as in the Czech Republic, the key part comprises of the EPC principles description, based on data from real EPC contracts. The work is concluded by a SWOT analysis of the method and by a discussion of the following question: "Can EPC projects blockade the overall saving potential in some cases?" The key information source for most of the work were answers to questions sent to eight Czech ESCO companies representatives, as well as the outputs from guided interviews with four of them, which were taking place between January and May 2009.

Annual building renovation rates in Europe currently stand at 0.4 to 1.2%. In order for Europe to meetits energy efficiency targets a “renovation wave” will have to be triggered that will, at least double, the current rates (“A European Green Deal | European Commission” 2019). It is clear, in the “Clean Energy Package for All Europeans”, that the European Commission regards Energy Performance Contracting (EPC) as a key tool to boost the aforementioned “renovation wave”. This is a renovation model in which the client shares the performance and financial risk of the energy efficiency renovation with the Energy Service (ESCO), responsible for designing, implementing, and operating the project during its lifetime. This is a model that has not seen the expected uptake in Europe its potential suggested, due to a set of, already well identified, regulatory, market, financial and social barriers. This project proposes an innovative EPC model – the Integrated Benefits Model – that aims at tackling some of the current barriers and envisions what the future of energy consumption in buildings can be. This model was tested in a real case study and was shown to reduce the project’s payback time by 16% when compared to a traditional energy efficiency renovation. This increases the attractiveness of energy retrofits among building owners. To address some of the remaining barriers, a set of recommendations to stakeholders was drafted, in order to facilitate a wider adoption of EPCs (and in particular the Integrated Benefits Model) across the whole value chain. / Byggnadsrenoveringsgraden ligger för närvarande på 0,4 till 1,2%. För att Europa ska kunna uppnå sina energieffektivitetsmål måste en ”renoveringsvåg” utlösas som åtminstone kommer att fördubbla den uvarande siffrorona (“A European Green Deal | European Commission” 2019). Det är tydligt i satsningen "Ren energi för alla européer" att Europeiska kommissionen ser Energy Performance Contracting (EPC) som ett nyckelverktyg för att utlösa den ovannämnda "renoveringsvågen". Detta är en renoveringsmodell där kunden delar prestanda och finansiell risk för energieffektivitetsrenoveringen med ett s.k. Energy Service Company (ESCO), som ansvarar för att utforma, implementera och driva projektet under dess livstid. Detta är dock en modell som inte har utvecklats som väntat i Europa trots sin potential. Skälet till detta är på grund av en uppsättning väl identifierade reglerande, marknadsmässiga, finansiella och sociala hinder. Detta projekt föreslår en innovativ EPC-modell - Integrated Benefits Model - som syftar till att ta itu med några av de nuvarande hindren. Denna modell testades i en riktig fallstudie och visade sig minska projektets återbetalningstid med 16% jämfört med en traditionell energieffektivitetsrenovering. Detta ökar attraktiviteten för energieffektiviseringsåtgärder bland byggnadsägare. För att ta itu med några av de återstående hindren har en uppsättning rekommendationer utarbetades till intressenter för att möjliggöra EPC:er (och särskilt den integrerade förmånsmodellen) över hela värdekedjan.

The load in the electricity grid fluctuates during the day and between seasons. As a distribution system operator (DSO), an uneven load profile leads to increased transmission losses and unnecessary high costs for subscribing power from the feeding grid. Efficiency measures and a more even power consumption by the end-users, could therefore lead to that a DSO can achieve lower costs for power-subscription from the feeding grid and transmission losses, but also implies a lowered cap of total revenues. As a step towards implementing the EU energy efficiency directive, the Energy Markets Inspectorate (Ei) have developed two economic incentives which enables for DSOs to profit economically from cost reductions related to transmission losses and feeding grid. For this reason the electricity suppliers Storuman Energi and Affärsverken Energi sees a possibility to offer a load shift-service to low voltage DSOs using the flexibility in the demand of electrically heated households. The aim of this study is therefore to demonstrate how a service such as this one can be valued in the Swedish electricity market. The task at hand was examined by conducting a survey of the values of demand-side flexibility, as well as an investigation of how the costs for the end-user and incentives for the DSO are affected by flexibility. A review of the values associated with demand-side flexibility has been conducted for electricity suppliers, DSOs and end-users. With regard to the DSOs, the main value is connected to the new economic incentives from Ei, whose potential depends on the properties of the grid and the tariff for the feeding grid. Other values related to operation and delivery reliability can also be achieved. The main values for electricity suppliers are a lowered risk for unbalance following as a consequence of better knowledge of their end-users’ usage, and also the possibility to profit by offering a load shift-service. The values for end-users have been divided between cost reductions and system benefits, both of which are regarded to compensate the remuneration end-users require to offer their flexibility. By adapting consumption after the spot market price or the grid tariff, lowered costs for electricity can be achieved. The end-users can also appreciate system-benefits such as the facilitation for intermittent renewable electricity production, electric vehicles and reducing the societal dependency on expensive fossil-fuelled power generation as positive. They do on the other hand regard a possible depreciation of the heat comfort, data confidentiality and reduced control over one’s own electricity consumption as negative. If the service can be bundled with equipment which yields other values, such as an increased heat comfort, the end-users’ demand for remuneration can decrease. To explore what effects demand-side flexibility can have on the electricity costs of end-users and the economic incentives for DSOs, a case study is conducted in the electricity distribution grid of Karlskrona. Through review of previous studies, a potential for demand reductions was established and used as input in the case study. It can be determined that the incentive for a more even load profile constitutes a substantially greater share of the total incentives, compared to the incentive for reduced distribution losses. It is further concluded that a fairly large part of the incentives can be achieved by controlling the end-users on only a few occasions each year. It is also established that the cost reductions for end-users can match their demand for remuneration. A future scenario with more electrical vehicles connected to the grid for charging, greatly increases the possible benefits for both the DSO and end-users. Through the investigation of different possible designs for the energy service, it is recommended that the demand side management of end-users is placed in the hands of an electricity supplier responsible for balancing the consumption of the end-users. A procurement-procedure is deemed problematicfollowing the risk for unproportional use of resources and time. As a result of this, the energy service should not be traded directly between DSOs and electricity suppliers. Instead, it is proposed that the DSO develops a time-differentiated tariff, after which the electricity supplier can adapt the end-users’ consumption. Since the results indicate that controlling the end-users consumption on just a few occasions is sufficient to yield large benefits for the DSO, a grid-tariff with critical peak pricing is recommended. This tariff employs a high price for shorter periods of time when the grid load is peaking and a rebated price during all other occasions. This opens up for controlling the use during the other days according to the spot market price. As the electricity supplier grants the end-user lowered costs for both the electricity grid and trading, they have the opportunity to apply a charge for the service. Both the DSO, end-user and electricity supplier is presumed to improve their profitability with this design. When implementing the energy service, a couple of aspects are important to shed light on. The grid-tariff of the end-user and the tariff for the feeding grid needs to be synchronized with each other, to stimulate the same type of load shifts. It should also be noted that the possible gain from the incentives will decrease as demand side management-measures is taken since the reference-level from which a comparison is made improves. Another interesting aspect is that the regulation stipulates that only a certain percentage of the cost reductions will result in incentives, thus limiting the amount of profitable measures. Since the costs and revenues between the actors in the transmission system (low and medium voltage DSOs and the TSO) are interdependent, the revenue loss for the medium voltage DSO resulting from the cost reduction for the low voltage DSO, can result in a recoil effect. Lastly, a widespread introduction of control equipment to end-users can facilitate other uses for the demand-side flexibility. / Belastningen i elnätet varierar under dagen och mellan olika säsonger. Att som nätägare ha en ojämn belastning i sitt nät leder till ökade nätförluster och onödigt höga kostnader för att abonnera effekt från det överliggande nätet. Effektiviseringar i nätet och ett jämnare effektuttag av användarna kan därmed leda till att en nätägare kan erhålla minskade kostnader för abonnerad effekt från överliggande nät och nätförluster, men innebär också en sänkt intäktsram för nätägaren. Vid implementering av EU:s energieffektiviseringsdirektiv har Energimarknadsinspektionen tagit fram två ekonomiska incitament som möjliggör för nätägare att dra nytta av kostnadsminskningar för nätförluster och överliggande nät. Av denna anledning ser elhandelsbolagen Storuman Energi och Affärsverken Energi möjligheter att, med hjälp av efterfrågeflexibilitet hos framförallt eluppvärmda hushåll, erbjuda en laststyrningstjänst till lokalnätsnätägare. Syftet med denna studie är därmed att demonstrera hur en tjänst som denna kan värdesättas av aktörerna på den svenska elmarknaden. Frågan behandlas genom att undersöka vilka värden efterfrågeflexibilitet kan ge upphov till, exempelvis hur slutanvändares elkostnader och nätägares ekonomiska incitament påverkas av efterfrågeflexibilitet. En inventering har gjorts av efterfrågeflexibilitetens värde för elhandlare, nätägare och slutanvändare. För nätägare bedöms de huvudsakliga värdena finnas kring de nya ekonomiska incitamenten, vars potential beror på nätets förutsättningar och regionnätstariffen. Det finns också nyttor kopplade till driftsäkerhet och leveranskvalitet. Elhandlare kan dra nytta av en lägre risk för obalans genom att de får bättre uppfattning om sina kunders användningsmönster, samt möjligheten att även debitera för utförd laststyrningstjänst. För slutanvändare har värdena delats upp i kostnadsminskningar och systemnyttor. Båda dessa anses kunna kompensera för de krav på ersättning som slutanvändare har för att bidra med sin flexibilitet. Genom anpassning efter exempelvis spotpris eller en nättariff kan lägre kostnader för elhandel respektive nät erhållas. Vad gäller systemnyttor kan följder som att exempelvis främja intermittent förnybar elproduktion, underlätta införande av en eldriven fordonsflotta samt att minska beroendet av dyra fossileldade produktionsslag ses som positiva. Å andra sidan bedöms en upplevd risk för försämrad värmekomfort och datasekretess samt minskad kontroll över sin användning spela in som negativa värden. Om tjänsten kan paketeras tillsammans med utrustning som även ger andra mervärden, exempelvis möjliggör en ökad värmekomfort, kan slutanvändares ersättningskrav minska. För att utreda vilken konkret påverkan efterfrågeflexibilitet kan ha på slutanvändares elkostnader och nätägares ekonomiska incitament görs en undersökning i Karlskronas lokalnät. Där appliceras den potential för efterfrågeflexibilitet som tidigare studier visat på. Det konstateras att incitamentet för jämnare nätbelastning visar betydligt större potential än det för minskade nätförluster samt att en stor del av incitamenten går att erhålla genom att styra endast ett fåtal tillfällen varje år. Vidare pekar resultatet på att slutanvändares kostnadsminskningar kan nå upp i nivåer som motsvarar deras ersättningskrav. Ett framtidsscenario med fler elfordon ger mycket större ekonomisk potential för både nätägare och slutanvändare. Efter att ha utrett olika alternativa utformningar för energitjänsten föreslås att passiv efterfrågeflexibilitet tillämpas genom att laststyrning av slutanvändare sker av en elhandlande aggregator med balansansvar. Ett upphandlingsförfarande bedöms medföra risk för stor resurs- och tidsåtgång, varför handel av tjänsten inte bör äga rum mellan elhandlare och nätägare. Men för att elhandlare ändå ska kunna ta del av värdet från de ekonomiska incitamenten föreslås att nätägaren tar fram en tidsdifferentierad nättariff, vilken elhandlaren kan laststyra slutanvändare efter. Då resultatet pekar på att styrning under endast ett fåtal tillfällen är erforderligt kan en nättariff av typen spetspristariff tillämpas, där kostnaden för effektuttag kraftigt stiger när belastningen är hög i nätet. Då möjliggörs styrning efter exempelvis spotpris de tillfällen som inte är nödvändiga att styra med hänsyn till nätet, eftersom kostnaden för effektuttag då är låg. Genom att elhandlare på så sätt kan erbjuda slutanvändare lägre kostnader för både nät och elhandel har de möjlighet att debitera slutanvändare en avgift för utförd tjänst. Med denna utformning anses både nätägare, elhandlare och slutanvändare kunna nå en ökad lönsamhet. Vid införandet av energitjänsten är ett antal aspekter viktiga att belysa. Slutanvändares nättariff och lokalnätets tariff för överliggande nät spelar en viktig roll då de behöver stimulera till att samma styrning utförs, exempelvis om det är fördelaktigt att styrning sker ofta eller mer sällan. Då incitamentens nivå bestäms utifrån en referensperiod kommer möjlig avkastning att avta i takt med att förbättringar görs. I nätregleringen är det fastställt att bara en viss del av kostnadsbesparingarna erhålls i form av de ekonomiska incitamenten, vilket innebär att vilka åtgärder som är lönsamma begränsas. Genom att kostnader och intäkter är tätt sammankopplade mellan aktörerna i elnätet (lokal-, region- och stamnät) kan regionnätets intäktsbortfall till följd av lokalnätets lägre kostnader, ge upphov till rekyleffekter. Att storskaligt installera styrutrustning hos slutanvändare kan också möjliggöra andra användningsområden, med andra ord skapas det en plattform för efterfrågeflexibilitet.

Renovation of the existing buildings in Sweden represents a great potential to achieve the energy efficiency and carbon emission targets set by the European Union and the Swedish government. The Energy Performance Contracting (EPC) is regarded as an efficient way to manage and to outsource the risks of energy efficiency (EE) measures. The thesis aims to identify the theoretical framework of EPC in the Swedish scenario and, through a real case, develop a model that relates EE measures and its results considering the capital investment versus running costs of renovation projects. The work is based on the incorporation with the Morastrand AB. The research expects to assess EPC processes and measures as in Energy Service Companies (ESCO) and consequently help in the decision making and the management of the projects. The thesis is composed of two parts. The first part identifies the theoretical framework of energy contract models focusing on the EPC, while a case study with Morastrand AB is subsequently presented. It is suggested one approach for the preliminary comparison of different renovation measures in EE projects, corresponding to the first step of the planning phase of an EPC. General recommendations and sensitive factors were identified and can assist Morastrand AB to effectively implement EE projects in the future. For orienting investments, the Lifecycle Cost Analysis (LCCA) is a method to study solutions under economic aspects and further it can be extended to the complete Lifecycle Assessment of the upcoming projects. The theoretical framework of the EPC is composed by identifying the projects, performing the technical analysis, determinizing the potential in energy savings, deepening the analysis with auditions, tendering the project, designing and executing the project, commissioning, operating and supporting the systems with constant monitoring and maintenance. The biggest challenge for the EPC in Sweden is the relation between the ESCOs and their clients. The figure of the facilitator could improve the results and balance the knowledge gap between the parts. The actors of these projects are the ESCO, the client, the facilitator and the financing part. In Sweden, very frequently the client finances the operation. There are a few models of contracting, and the most popular are guaranteed savings and shared savings. The thesis performed the LCCA of three options for window replacement in a building at the end of its lifespan. The results show that the trends in prices and interest rates are sensitive factors. In this case, the projects with higher initial investments were more profitable. Those solutions can shield the company against energy prices escalates and contribute to the green policies.

Abstract This study examines emerging service markets1 and creates a model to capture both the service provider’s activities within market development and the interplay between different market actors. This work aims to identify the key elements behind sustainable market development, specifically examining 1) market activities, 2) the role of innovation and 3) the necessary evolutionary factors, where a market consists of multiple buyers and sellers and comparable market offerings. The empirical part of the study is conducted in the form of a qualitative case study, which is used to analyse the dynamic nature of emerging market development. The study uses a multi-method approach to data collection to capture the market’s evolution and relationships between market actors. The study follows emerging energy saving market development taking the perspective of an Energy Service Company in Dubai. As the main outcome of the study, it is argued that the service provider needs to direct its activities to build those relationships necessary to gain market acceptance and a coherent market offering before it can truly exploit market opportunities. As a characteristic of an emerging market, different interpretations of an innovation increase market dynamics, which slows market acceptance. Therefore, the service provider’s innovation process needs to serve market needs first; later, when the market has evolved, the innovation process is divided into co-innovation and structured innovation. From the evolutionary point of view, many service markets need to be fostered by market actors, as well as needing government-built regulatory and market support mechanisms. This need is especially valid for services that have other societal goals beyond pure financial interests. For a new service provider, an understanding of emerging markets is essential to appropriately set expectations and to accurately plan for the timing and effort needed for market entry. 1 An emerging market in this study represents the market development phase that occurs when a market has been created. Markets are emerging everywhere regardless of country or other geographical area and should not be confused with developing country-related emerging markets. / Tiivistelmä Tämä väitöskirja tutkii uusien markkinoiden kehittymistä erityisesti palveluliiketoiminnan ympärille, ja luo mallin, jolla voidaan tarkastella tällaisia markkinoita ja niiden kehittymistä. Mallissa huomioidaan palvelun tarjoajan aktiviteetit markkinoilla sekä vuorovaikutus muiden toimijoiden kanssa. Tutkimuksessa tunnistetaan keskeiset kehitysvaiheessa olevien markkinoiden elementit: 1) markkina-aktiviteetit, 2) innovaatio ja 3) kehittymisen edistämiseen liittyvät tekijät. Mallin mukaan nämä ovat edellytyksenä sille, että markkinoille muodostuu riittävä määrä sekä myyjiä että ostajia, jotta palvelutarjonnasta muodostuisi vertailukelpoista. Tämän tutkimuksen empiirinen osa on suoritettu laadullisena tapaustutkimuksena, jossa analysoidaan markkinoiden kehittymisen dynamiikkaa. Jotta markkinan kehittymistä ja markkinatoimijoiden välistä vuorovaikutusta voidaan tarkastella samanaikaisesti, on tutkimuksessa kerätty sekä haastattelu- että havainnointiaineistoa. Tutkimuksessa on seurattu kehityksen alkuvaiheessa olevan energiansäästömarkkinan kehittymistä ns. ESCO-palvelun tarjoajan näkökulmasta Dubaissa. Tutkimus osoittaa, että markkinoiden kehittymiseksi palvelun tarjoajan täytyy ensin keskittyä luomaan suhteet muihin markkinatoimijoihin, jotta yhdessä voidaan saavuttaa markkinoiden luottamus ja luoda yhteneväinen tarjonta, ennen kuin kilpaillaan markkinaosuuksista. Eri toimijoiden erilaiset tulkinnat markkinainnovaatiosta lisäävät dynamiikkaa ja vaikeuttaa markkinan yleistä hyväksymistä, jotka yhdessä siten hidastuttavat markkinan kehittymistä. Näistä syistä palveluntarjoajan tulisi kohdistaa innovaatioprosessinsa palvelemaan markkinan kehitystarpeita ensin ja vasta myöhemmin se voi keskittyä hyödyntämään mahdollisuuksia yhteiseen ja sisäiseen innovaatioon. Monet palvelumarkkinat vaativat kehittyäkseen toimijoita joiden tehtävä on pelkästään keskittyä edistämään markkinan kehitystä luomalla yhteisiä sääntely- ja tukimekanismeja. Nämä toimija ovat usein valtiollisia, erityisesti silloin kun markkinalla on myös yhteiskunnallisia tavoitteita, taloudellisten tavoitteiden rinnalla. Kehittyvät markkinat ja niiden mahdollisuuksien hyödyntäminen uudelle palveluntarjoajalle on haasteellinen konteksti ja menestyminen edellyttää sekä odotusten että panostusten asettamista realistisesti, jotta kehittyvillä markkinoilla voidaan ylipäätään toimia.

Energy Performance Contracting (EPC) is an important tool to disseminate energy efficiency measures. This study focuses on the main barriers and success factors for EPC market in order to build capacity in this subject. A pilot study of questionnaire took part among the local authorities of four countries within the European Union; Croatia, Denmark, Czech Republic and Slovakia. The results of this pilot study were combined with the results of a literature research to identify common disadvantages and key points of the market. Afterwards, the most important actions to be taken on national and international level in European Union were discussed. According to this study, the supportive legal framework for the energy efficiency measures, access to financial resources, reliable energy consumption data and trust in Energy Service Companies (ESCOs) were remarked as the essential factors for increasing the capacity of the EPC. / Intelligent Energy Europe, ManagEnergy