New Platform will Secure More Energy Renovations of Large Buildings

State of Green
By State of Green, September 18, 2017

Energy renovation can be a costly and complicated affair, especially in the context of large building work. In a so-called ESCO project, the amount of energy saved is guranteed to pay for the energy renovation, thus making it less insecure for owners of buildings to invest in the renovation. The construction industry has asked for impartial information regarding requirements, procedures, and experiences with ESCO projects to be compiled in one place. And now their wish has been met.

Large-scale energy renovation is a big investment, and it is often difficult to get certainty of how large the savings resulting from energy renovation will be over a longer time frame. In an ESCO project, the energy renovation is financed through the subsequent energy saving, for instance by a supplier guaranteeing the saving. Until now, there has been a lack of compiled information on how an ESCO project is organised in relation to supply, financing, division of responsibilities and so forth.

A new platform on the Danish Energy Agency’s website,, offers all the relevant information compiled in one place, which will make it easier for building owners to use the ESCO model. Thereby, the demand from the construction industry and large building owners for impartial information about what ESCO is and how it is done, is met.

-The government is working to make it easier for building owners to accomplish energy optimisation of their buildings. Therefore, I am pleased that we are now able to offer impartial information regarding ESCO for both public and private building owners, says the Minister of Energy, Utilities and Climate Lars Chr. Lilleholt.

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Information based on concrete experience
The ESCO model has been used both in Denmark and abroad for many years. In Denmark, the model has been used for instance in the renovation of Hvidovre Hospital, at Roskilde University College (RUC), in schools and other public buildings, as well as renovations of eg. shopping centers and office buildings around the country.

The information that is now made available for building owners, is based on concrete experiences and contributions from a wide range of actors, who have worked with ESCO in various ways.

-I see ESCO as a central opportunity for building owners, because it enables them to accomplish more, as well as more extensive, energy renovations, without having to be in charge of the whole process themselves. And I hope that even more will consider the opportunity now that there is an overview of how to begin the process, says the Minister of Energy, Utilities and Climate Lars Chr. Lilleholt

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-ESCO is a project and financing model that public and private building owners can use for large energy renovations of their buildings.

-The fundamental principle of an ESCO project is that energy renovation is financed through energy savings.

-One of the benefits of the ESCO model is that building owners do not have to pay extra to invest in the energy renovation, instead they pay for the energy renovation through the resulting energy savings.

-ESCO stands for Energy Service Company and refers to companies working with EPC (Energy Performance Contract).

Source: Ministry of Energy, Utilities and Climate

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