Sharing knowledge and experience: How to boost Slovenian EPC market

While Slovenia has made great strides in ESCO market development in the past, the country has yet to overcome some obstacles. The reason for Slovenia's orientation towards the EPC was, as in other EU country, the lack of financial resources.

Given the ambitious commitments regarding the renovation of buildings in the public sector it is necessary to engage private capital in the renovation of public buildings, while reducing the pressure on public funds. In Slovenia all EPC models, that also exist in Europe, such as contractual provision of energy supply and energy savings, lean energy contracting and green energy contracting, were implemented. Nevertheless, the country is still waiting for a very dynamic development in this area as ESCO market remains somewhat underdeveloped.

There are several reasons for EPC market not achieving the boost in development Slovenia has hoped, such as the size of the supply side of the ESCO market, which is below expectations. Competition on the ESCO market in Slovenia in scarce, as there are less than 5 ESCO companies performing on the market. In addition, buildings that had the biggest potential to be renovated through EPC were already renovated at the beginning of the widespread introduction of EPC in Slovenia, leaving now only buildings, that are simply not interesting enough for ESCO companies.

In the framework of the STEPPING PLUS project KSSENA has organized a knowledge transfer session with municipalities, that already had experience with large EPC projects. Municipality of Ljubljana is currently leading the biggest ESCO project in Slovenia and one of the most successful such projects in Europe »Energy Renovation of Ljubljana« (EOL). This project was implemented in 3 waves, each wave with specific bundle or pool of buildings. The session was focused on how the bundling was made as well as negotiations with ESCO company, to be able to get the best outcome in regards to scope of renovations.

Similar knowledge transfer was also organized with Energy agency GOLEA, which in the past has implemented a large ESCO project by aggregating 21 municipalities. The key of successful implementation of this project was also GOLEA participating as an independent organization representing the interests of public partners, so as an ESCO facilitator, and supported municipality throughout the whole process.  

Slovenia has many gaps to fill regarding the EPC market, but STEPPING PLUS has thus far provided many guidelines, opportunities, good practices, and knowledge to help fill them. Hopefully it will provide the much-needed boost to Slovenian EPC market.