Energy Service Contracting

Energy service contracting (ESC) is a partnership between a public authority or an enterprise and an energy service company (ESCO) aiming to reduce the cost of energy supply. At its own economic risk, the energy service provider as the ESCO makes all investments which are necessary and gives an energy saving guarantee. The partners then share the cost savings. The Senate of Berlin has successfully been implementing the model since 1996.

In more than 500 properties with more than 1,300 public buildings, including Rotes Rathaus, Berlin's public swimming pools and Deutsche Oper, existing energy saving potentials are tapped in this way. This allows Berlin to achieve its climate-protection and energy-policy goals even with a tight budget, saving money at the same time. Both innovative and standardised technical solutions are implemented. The average energy saving in Berlin's 25 energy saving partnership pools is 26 percent. As project manager, the Berliner Energieagentur accompanies each energy saving contracting project from the concept stage to implementation of the energy saving guarantee contract to monitoring. Based on the model of the Berlin energy saving partnerships, BEA has implemented ESC models also in other municipalities and buildings.