The business model of the Energy Efficiency Aggregator

The EE Aggregator and P4P programmes are being explored in the context of the Renovation Wave for meeting the EU’s energy efficiency targets using innovative financing and new business models. Energy efficiency is one of the main pillars of energy and environmental policy to combat the adverse impacts of climate change. Although the implementation of energy efficiency interventions in the building sector is pivotal to drive the energy transition and achieve energy policy targets, energy efficiency investments and interventions remain critically low. Financial barriers (e.g., high upfront costs, high risk, uncertainty on return of investment, etc.) have been highlighted in the literature as the main factors hindering energy efficiency interventions.  

The objective of this report is to analyse and explore the functions of the Energy Efficiency Aggregator.  Early experience from the U.S.A. suggests that P4P programmes have been most successful when aimed at EE Aggregators rather than individual customers. An EE Aggregator is an aggregating entity that groups a sufficient number of buildings together into an energy savings portfolio. P4P schemes that make payments to aggregators appear better able to drive innovation in energy efficiency service delivery.