STS - conferences, IST2012

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Energy supply companies becoming energy service providers
Sandra Backlund

Last modified: 2012-03-19


Energy services are stressed as an important instrument to improve energy end-use efficiency in sectors whose core business is not related to energy. Despite a recent strong market development in both Denmark and Sweden, the energy service market has far from reached its full potential.

Energy services include a variety of activities ranging from indirect energy services such as energy audits and analysis to complex services that include implementation, maintenance and operation provided in performance based remuneration contracts. One of the dominating segments that provide both indirect and complex energy services are energy companies. Energy supply companies becoming energy service providers assume dual roles with partly competing objectives, selling energy while implementing solutions to reduce energy utilization.

This paper studies energy supply companies that provide energy services Sweden and Denmark. By interviewing both privately and publicly owned energy supply companies, the objective is to study both the success factors and the hindering factors for the market development of energy services. The paper investigates energy supply companies’ incentives to implement energy efficiency measures and if the dual roles create conflicts of interest that can damage credibility and cause mistrust on the energy service market. It also explores how different policy measures affect the incentives for energy supply companies to improve energy end-use efficiency and if publicly and privately owned energy supply companies have different objectives and strategies.