Can Energy Services Companies deliver low carbon new build homes? Sharad Saxena, Mark Hinnells Lower Carbon Futures, Oxford University Centre for the Environment Mail
[email protected] Abstract The UK has set for itself an ambitious target of reducing carbon dioxide emissions by 60% by 2050. To achieve this target, carbon reductions would need to be made by all sectors including the residential sector which presently accounts for 27% of CO2 emissions. Energy Services Companies (ESCOs) could address the barriers to energy efficiency and microgeneration through design build, finance, operation and maintenance provision (DBFO). Energy services contracting will only be chosen where the reduction in cost of supplying energy services can more than offset the additional transaction cost compared to conventional supply. Previous work has identified three broad models of energy services: the Facilities Management or performance contract model for business commercial and public sector customers; the Community Model where decisions are taken on behalf of a group of customers (predominantly householders) in the same location; and the Supplier model where existing energy suppliers could evolve their offer to domestic customers. The Community model in new build has particular interest, in that it offers a viable route for the development of ESCo services to households. The paper explores the social, technological, economic and policy issues (a STEP analysis) that will play a key role in the emergence of ESCOs in new build housing in the UK. Key findings are: • London appears to be a key market within the UK, and in particular in dense build (eg flats) the whole development may be on a communal solution.