The ESCO Model
How does the ESCO model work?
ESCO is a service model where the entity implementing the investment receives a refund of its expenditures on the basis of the generated energy savings.
On Veolia’s part:
- Comprehensive coordination of the investment process
- Investment expenditures, including securing the appropriate grants
- Managing the system during the term of the ESCO contract
Reducing CO2 emissions as part of the “Fit For 55” package
Under the “Fit For 55” package, the European Union has pledged to reduce CO2 emissions by 55% by 2030 and achieve net climate neutrality by 2050.
Around 40% of CO2 emissions in the EU originate from buildings.
The goals will be achieved by imposing reduction obligations primarily through three EU directives: EPBD (Energy Performance of Buildings Directive), ETS2 (Emissions Trading System 2) and Energy Efficiency Directive. Under this legislation, new public buildings will have to be zero-energy structures by 2028. In 2030, the zero-energy requirement will apply to all new buildings.
The existing buildings will need to be upgraded in order to reduce their demand for energy from fossil fuels.
Detailed requirements of each directive are provided on the diagram below.
Why invest in energy efficiency of buildings under the ESCO model?
The existing EU regulations impose specific requirements concerning the improvement of energy efficiency of buildings.
- From 2028 – all new public buildings must be zero-energy buildings
- From 2030 – all new buildings must be zero-energy buildings
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Improvement of energy efficiency of existing buildings
- non-residential buildings – maximum energy efficiency thresholds,
- residential buildings – minimum energy efficiency standard.
- 2027 – buildings under separated EU ETS (goal: 43% reduction compared to 2005, to be achieved by 2030).
- 2030 – energy saving levels:
−36% of primary energy,
−39% of final energy. - EED clearly highlights the leading role of ESCO in public projects.
- 2030 – 49% share of renewable energy sources in buildings
Benefits
Energy savings without the need for initial investment expenditures
Transferring the risks related to investment completion and maintenance to Veolia
Improving the technical condition of buildings and other structures
Veolia will be responsible for preparing the application for co-financing of the investment from available public funds
Our offer
ENERGY EFFICIENCY FOR BUILDINGS UNDER ESCO MODEL
ENERGY EFFICIENCY FOR INDUSTRIAL FACILITIES UNDER ESCO MODEL
