Policy developments in EU and strategies for P4P business models


Efficient and resilient energy system
Energy efficiency business models
Energy efficiency financing


Pay-for-performance (P4P) is the key concept behind SENSEI business models. In a P4P scheme for financing energy retrofit projects, financial flows between the involved parties are linked to the actual – metered – and weather-normalised energy savings. This approach encourages long-term investment and transparent cash-flows (pay) in energy-efficient buildings by metering energy savings smart and getting a return on investment (ROI), based on proven and measured savings in the buildings (performance).

This report presents integrated strategies for rolling-out pay-for-performance (P4P) schemes in the European Union. It focuses on ways that policy and regulatory developments in the European Union may become risks or opportunities for energy efficiency Pay-for-Performance schemes.

Based on a comprehensive literature review, a Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis, interviews with key stakeholders from the field, and an EU-wide online survey, regulatory opportunities for P4P schemes are identified considering the different policy measures and market uptakes. This, in turn, has enabled to provide a set of integrated strategies for rolling out P4P schemes in the EU, by considering existing and upcoming regulatory frameworks, the exploitation of opportunities that may emerge and adaptation to potentially unfavourable developments.

Authors: Dimitra Tzani (IEECP), Vassilis Stavrakas (IEECP), Marion Santini (RAP) and Filippos Anagnostopoulos (IEECP).

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