Energy Service Companies

At the heart of innovative financing models for efficiency

Energy service companies (ESCOs) deliver energy efficiency projects that are financed based on energy savings. Given the need to rapidly and significantly increase financing for energy efficiency, interest in ESCO business models is growing.


The following information is derived from both QualitEE's energy efficiency service's analysis and the JRC's 2017 report, Energy Service Companies in the EU


In Bulgaria there is large energy efficiency potential. However, the ESCO market is at an initial stage of development and is limited mainly to the public buildings. There are about 15 ESCOs capable of executing an EPC. The typical project duration is five to eight years and average project size is 0.3-0.5 million EUR (Transparense 2013).

Average duration of ESCO projects in Bulgaria: Survey Data

The Bulgarian Energy Efficiency and Renewable Fund (EERSF) was established through the Energy Efficiency Act in 2004.

Few banks finance EPC and the financing conditions are unfavourable. One of the reasons for this problem is the high amount of required financing – typically from several hundreds of thousands to several million euro. Banks are not prepared to accept repayment of financing via EPC energy savings. This means that only ESCOs able to provide substantial collateral have the capability to raise finance.

The QualitEE survey has collected data surrounding the main drivers and barriers of business for ESCOs in Bulgaria. This is an excellent opportunity to compare the structural differences of ESCO markets to identify policies or mechanisms that account for such variance. Policies can then be built to complement existing drivers and overcome identified barriers.

QualitEE Data

Barriers in Bulgaria include: