PROJECT Green Energy

ESCO Hungary

Establishing energy performance contracting as a means of funding renewable energy projects in Hungary.

Hungary Map


How to enable more investments for renewable energy sources in Hungary?

One of the most acute issues of the European environmental policy is the reduction of the CO2 emissions and the increase of the share of renewable energy sources (RES) in total energy production. The challenge is even bigger in Central and Eastern European countries, whose economies are usually fueled by more a conventional energy matrix.
When analyzing the investments in RES and public energy efficiency it actually turns out that the majority of them is financed with the significant contribution from European Union. Considering forthcoming changes in the rules of financing (cohesion policy and shift to repayable instruments) there is an urging need to develop new models for raising funds for these projects.

Supporting bilateral cooperation for greener and more efficient energy matrices.

Energy Performance Contracts (EPC) could be a successful way to tackle this challenge. At present, the Energy Efficiency Directive defines EPC as a contractual arrangement between the beneficiary and the provider of an energy efficiency improvement measure. Results are verified and monitored during the whole term of the contract, where investments (work, supply or service) are paid for in relation to a contractually agreed level of energy efficiency improvement or other agreed energy performance criterion – such as financial savings. Norway has launched a standard for EPC in 2014, so there is a fresh lesson to be learned from the implementation process, with projects that started at the beginning of the year 2000.

In order to enhance new models of financing energy efficiency investments in Hungary, LENERG – an energy agency, based in Debrecen – invited IDN to join a bilateral project and to share the knowledge and experience on implementation of EPC in Norway.

The knowledge transfer project was organized in two workshops – one in Hungary and one in Norway. The project was finalized with a presentation of the report and recommendations on implementation of EPC to Hungarian stakeholders interested in energy efficiency projects.