EU funds 1.3 million euro for ESCO project
Being showcase pioneers, three Danish municipalities involved in the same ESCO project, have been awarded 1.3 million euro from the EU Structural Funds. Their goal is to bring down the barriers to energy efficiency and show the advantages instead.
The Danish municipalities concerned are Kalundborg, Middelfart and Gribskov who together have been allocated 1.3 million euro for the development of ESCO models. This is a relatively new concept in Denmark and therefore brings with it many challenges and opportunities.
What is ESCO?
ESCO is short for Energy Service Companies – a professional business that offers counselling and energy saving solutions which are wholly or partially financed by the savings made from the projects themselves. This means that municipalities can carry out energy refurbishments of public buildings that are wholly or partially paid for by their own energy savings.
One of the key goals of the ESCO project is to inspire other municipalities to adopt the ESCO model as a means to achieve energy savings, particularly through quality retrofitted buildings, without challenging already scarce budgets. Martin Andersen, who is Head of Kalundborg Municipality’s EU Office, explains:
Martin Andersen, Head of Kalundborg Municipality’s EU Office“We know that approx. 40% of our energy use is in buildings. And many of these buildings are actually owned by us - the municipality. Therefore, using an ESCO approach is extremely important because it allows us to identify and carry out energy savings without levying an extra investment burden on the already constrained public budgets. Furthermore, this project is a showcase for other municipalities in both Denmark and abroad. To demonstrate that ESCO can be adopted no matter where, is one of the main reasons why we were able to attract EU funds.”
Taking the bull by the horns
“We have taken the bull by the horns and want to help local companies to see the advantages of the ESCO model. Those local companies who have specialised in sustainable energy solutions, low energy products and renewable energy, will presumably experience a boost in demand for their services. We intend to start a development process providing information through meetings and open dialogue with local companies who, in turn, will interact with their own branch organisations,” states Martin Andersen.
Be a first mover
“I have been working within local and regional development at different EU offices in Brussels since 1998. I know what is happening around us on the political scene. When politicians become very focused on a specific political area, we immediately become active. Around two years ago, we noted that EU politicians were showing greater awareness of the ESCO concept. Therefore, we immediately started working on our model and just see where we are today!”
Everyone wants a share of the pie
Right now, the ESCO project is seen as a prime example of how to carry out energy savings and, not least, to inspire other municipalities to do the same. That is why some of the EU funds will be used to hire ESCO consultants and to prepare a guide on how ESCO can be applied, integrated and disseminated to other municipalities as well.
As there is great demand for the EU funds with everyone wanting to have their share of the pie, Martin Andersen ends with this piece of advice:
“Be willing to be an active showcase, know what is happening around you and act as soon as possible.”
On 18 May 2009 the official launch of the ESCO project will see the mayors of the three partner municipalities joining a large number of key companies and institutions affiliated to the infant Danish ESCO industry.
