|TYPES OF EPC CONTRACT AND EPC MARKET IN THE SOUTHERN EUROPEAN COUNTRIES|
|EPC CONTRACTS||GUARANTEED SAVINGS|
The ESCO market is at a very preliminary stage in Greece. Most of the contracts already performed are regular energy efficiency refurbishment works- such as window replacement. The construction company is paid either in instalments or through the bank if the project is subsidized by the Government.
There are two standard contract types because:
─ In Greece there aren’t important EPC Contracts already signed between municipalities and ESCO. The relevant legal framework for the operation of ESCOs is in force since 2010. However, there are apparently conflicting official decisions in the public sector that inhibit the use of an EPC
─ The economic crisis has caused a decrease in funds available for project financing especially if payback times are not short or close to short terms.
─ The lack of successful ESCO projects in the public sector reduces confidence among the Municipalities that are reluctant to undertake a pioneering role.
There is no any real development of the EPC Market over the last 3 years, as discussed above. However, it is expected that with the following initiatives that are being taken care of by the Ministry of Environment, Energy and Climate Change, the market will start to pick up.
(i) Resolve the current legal and bureaucratic obstacles that inhibit the implementation of an ESCO project.
(ii) Carry out a few examples of ESCO projects with the public sector so that there will be successful examples to raise confidence in the public sector especially in the municipalities.
(iii) Cooperate with the banks through a Committee already established to resolve problems regarding project financing in Municipalities.