The International Energy Research Centre Conference recently released a report saying that Europe could use contracts to help companies become more energy efficient.
The IERC promotes the idea of paying no upfront cost but paying back the payment from the money they save in energy bills. The IERC call them Energy Performance Contracts (EPCs). An example of this is the city Agartala in India.
The conference noted that Europe wastes €270 billions worth of energy annually and accounts for 40% of CO2 emissions. The EPCs were made to help reduce this by helping buildings apply energy efficient measures such as installing LEDs. They predict that with EPCs the market will grow from around £319 million last year to around £4.8 billion in 2020. The US market will grow from $6 billion to $11-$15 billion in the same period.
Business Development Manager of Aramark, Ray Ring, said: "The EPC model provides a win-win in the long term with no upfront costs, while at the same time the energy performance of the building is greatly enhanced. EPCs also provide a better alternative to the traditional 'low-bid' process by providing better designs, systems, equipment and life-cycle performance."