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.


Latvia


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


	Share of activity
Public	25
Private	75
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	Share of contracts
EPC Guaranteed Savings	75
EPC Shared Savings	13
Both EPC Shared & Guaranteed Savings 	12
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Insights

Duration of ESCO projects in Latvia is well diversified. QualitEE Data

Debt and equity financing are typically used for ESCOs in Latvia. Currently there is work to development refinancing mechanisms for EPC projects. The Latvian Baltic Energy Efficiency Facility (LABEEF) is expanding the financing options available for ESCOs. LABEEF is funded by public and private investors. One of the investors of the fund is the European Bank for Reconstruction and Development. At the moment commercial banks are not considering any special conditions and loans for EPC projects. ALTUM a state-owned development finance institution has introduced loans for ESCOs as well.

The Energy Development Conception for 2007-2013 is a policy-planning document that established Latvian state energy policy objectives and actions for long-term development. The central goal is to improve energy efficiency of district heating systems, buildings and energy production by incorporating renewable energy sources.

The Guidelines for Energy Sector Development 2007-2016 set implementation benchmarks to be reached in the field of energy efficiency:

The QualitEE survey has collected data surrounding the main drivers and barriers of business for ESCOs in Latvia. 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


Current barriers to the ESCO market in Latvia include: QualitEE Data