Exploring the Role of Servitization to Overcome Barriers for Innovative Energy Efficiency Technologies The Case of Public LED Street Lighting in German Municipalities

Abstract

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Innovative Procurement Frameworks for Energy Performance Contracting in the UK Public Sector

“…Despite highly attractive rates of return, many public sector bodies struggle to finance and implement those improvements (Aasen, 2015;Gardner, 2013). Energy performance contracts (EPCs) provide a promising means of overcoming these difficulties and of accelerating the diffusion of energy efficient technologies (Polzin, 2015;Aasen, 2015). EPCs focus upon the delivery of final energy services, such as mobility and illumination, rather than individual end-use technologies (Sorrell, 2005(Sorrell, , 2007.…”

“…Verification of those savings through agreed procedures for measurement and verification (M&V, see Appendix 7.1 for more information) may be undertaken by the EPC provider or an independent organisation. EPCs can allow public sector organisations to reduce operating costs, transfer risk and concentrate attention on core activities (Sorrell, 2005;Polzin, 2015). The client organisation typically negotiates the output required (i.e.…”

“…Previous research in the area of EPCs and energy service contracting/ESCOs more generally has been primarily concerned about transaction costs (Polzin, 2015;Sorrell, 2005Sorrell, , 2007 and the evolution and nature of ESCO markets (Bertoldi, 2006(Bertoldi, , 2007(Bertoldi, , 2014Hansen, 2009;Marino, 2010Marino, , 2011. Only recently has there been a surge in interest in the role of ESCOs in providing energy services at a local 4 authority and municipal level (Aasen, 2015;Hannon, 2015b, a;Jensen, 2013;Polzin, 2015).…”

“…Only recently has there been a surge in interest in the role of ESCOs in providing energy services at a local 4 authority and municipal level (Aasen, 2015;Hannon, 2015b, a;Jensen, 2013;Polzin, 2015). Procurement frameworks for energy services such as the PFEPCs analysed in this paper have received comparatively little attention with only a limited number of academic publications mentioning one of them (RE:FIT) (Chmutina, 2014;Chmutina, 2012;Hannon, 2015b).…”

“…The experience with these PFEPCs can provide insights into the opportunities for, benefits of and obstacles to energy performance contracting in the public sector, together with the role of procurement frameworks in diffusing the EPC business model and costeffective energy efficiency measures. This paper adds a UK perspective to the growing international body of literature on drivers and barriers for EPCs in the public sector (Aasen, 2015;Patari, 2013;Polzin, 2015).The specific research question are:…”