A snapshot of the European energy service market in 2010 and policy recommendations to foster a further market development

As of 2010, the energy service market in Europe is still far from utilising its full potential. Wide-scale peer-reviewed studies investigating the development and up-to-date status of the European ESCo market are scarce. This article presents a comprehensive insight of the European ESCo industry based on the results from a large-scale survey carried out 2009–2010 in 39 European countries. The observed market development during the period 2007–2010, trends in business practices, and factors influencing the ESCo industry evolution are described. Finally, having considered the remaining barriers and the supporting factors as well as the successful experiences in Europe, policy measures that could further promote ESCo activities are proposed.

► ESCo markets in Europe continue to show diverse stages of development. ► Between 2007 and 2010 the European ESCo market underwent a slow growth. ► European states have introduced favourable legislative framework for energy conservation. ► Loan guarantees recognising the ESCo contractual model increase the access to finance. ► Establishment of quality standards and certification schemes for ESCos are essential.