This publication is prepared in the framework of the Financing Energy Efficiency (EE) and Renewable Energy (RE) Investments for Climate Change Mitigation (FEEI) project and outlines the development of energy service companies (ESCO) market in the countries participating in the FEEI project. The experience proved that setting up ESCOs is one of the best ways to address the issue of EE and RE financing. ESCOs have both technical expertise and financial capabilities to invest in EE measures and RE projects. ESCOs can serve as an integrator of EE projects and for bundling the procurement of goods across several projects into one request for external financing.
This report examines the current status of ESCO development in twelve countries participating in the FEEI project. For the purposes of the report all participating countries are divided into three groups: member states of the European Union (Bulgaria, Croatia, and Romania), countries of South-Eastern Europe (Albania, Bosnia and Herzegovina, Serbia, and the former Yugoslav Republic of Macedonia), and countries of Eastern Europe and Central Asia (Belarus, Kazakhstan, Republic of Moldova, Russian Federation, and Ukraine). The proposed grouping helps examine the current situation with ESCOs in the countries based on their geographical situation and neighborhood as well as the membership in and/or relationship with the EU.