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ID:
149905
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| Summary/Abstract |
The UK market for energy service contracts is expanding, owing in part to the emergence of intermediaries for those contracts in different parts of the public sector. These intermediaries combine a legal framework for establishing contracts with an organisational framework that facilitates contract negotiation and execution. This paper examines the nature and operation of these intermediaries in more detail, including their achievements to date and their similarities and differences. It uses ideas from transaction cost economics to develop a theoretical model of the contracting decision and shows how intermediary organisations can lower the transaction costs incurred by both clients and contractors, thereby increasing the viability of contracting. The paper argues that intermediaries can play an important role in expanding the market for energy service contracts, and hence in delivering cost-effective energy efficiency improvements throughout the public sector.
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| 2 |
ID:
126532
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| Publication |
2013.
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| Summary/Abstract |
This paper analyses the development of community energy in the UK by comparing it to Germany in relation to decentralisation, scales and ownership structures particularly of wind energy. Varying approaches to energy generation at the community scale provide interesting insights into the impact of policy innovation as well as the capacity of national energy frameworks to foster socially innovative engagement practices beyond the purely technological diffusion of innovations. By examining interactions between technological and social innovations with the help of a qualitative analysis, opportunities for potential generators not traditionally engaged in energy generation to tap into these innovation systems are analysed. This paper suggests that greater commitment to diversification beyond the implementation of policy measures such as the feed-in tariff is required to provide communities with the capacity to develop new generation practices in terms of scale and ownership. The UK in particular is struggling to protect these new generation practices which allow communities to derive benefits facilitated by specific energy policy measures according to their potential. It concludes by indicating areas where niche protection might need to be expanded if community energy is to play a greater role in the UK's ambitious transition to a low-carbon economy.
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| 3 |
ID:
150647
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| Summary/Abstract |
Municipalities aiming at mitigating climate change by implementing new energy efficiency technologies face budgetary and capacity constraints. Outsourcing through energy service contracting could provide a solution. This paper reports results from a survey of 1298 municipalities concerning barriers to retrofitting public street lighting and the possible role of energy service contracting to overcome these barriers. Using a logistic regression analysis, the authors investigate determinants of opting for energy service contracts in the specific context of LED retrofits. Results point to an advantage of outsourcing in a financially and capacity-constrained environment, which corresponds with the main reasons for engaging in contracting: minimising investments and financial risks. However, municipalities often do not fully grasp the risks associated with retrofitting especially using a novel technology such as LED. In relation to that they underestimate the risk reduction potential of energy performance contracts (EPC). Previous experience with outsourcing increases the probability to engage in servitization although certain existing partnerships, particularly with utilities, prevent municipalities from considering energy performance contracts. Interestingly, engaging an energy consultant has a negative propensity to use energy service contracts, while pre-negotiated standardised contracts for energy performance contracts have a positive influence.
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