The presentation about ESCOs with a focus on industrial activities in Italy illustrated at the JRC workshop "Energy Services Market in the EU" held in Brussels. The topics discussed are the blurred definition of ESCO, the Italian situation on this respect, the UNI CEI 11352 certification, the main characteristics of the industrial sector, some survey data about the ESCOs market, and the link with support schemes and in particular with the white certificate scheme.

1. ESCO business in the
industrial sector in Italy
Dario Di Santo, FIRE
Brussels, 22 October 2015

2. 2
www.fire-italia.org
The Italian Federation for the Rational use
of Energy is a no-profit association founded
in 1987 that promotes energy efficiency,
supporting energy manager, ESCOs and other
companies dealing with energy.
Besides the activities directed to its nearly
450 members, FIRE operates under an
implementing agreement with the Ministry of
Economic Development to manage the Italian
energy manager network since 1992.
In order to promote energy efficiency FIRE
cooperates and deals with public authorities,
energy technology and service companies,
consultants, medium and large consumers,
universities and associations to promote best
practices and improve the legislation.
FIRE manages SECEM - an accredited body - to
certify the Energy management experts
according to the standard UNI CEI 11339.
FIRE: the association for energy efficiency

3. 3
445 members in 2014, 228 persons
and 217 organizations.
FIRE: the association for energy efficiency
Some members of FIRE:
A2A calore e servizi S.r.l. - ABB S.p.a. - Acea S.p.a. - Albapower S.p.a. -
Anigas - Atlas Copco S.p.a. - Avvenia S.r.l. - AXPO S.p.a. - Banca d’Italia -
Banca Popolare di Sondrio - Bit Energia S.r.l. - Bosh Energy and Building
Solution Italy S.r.l. - Bticino S.p.a. - Burgo Group S.p.a. - Cabot Italiana
S.p.a. - Carraro S.p.a. - Centria S.p.a. - Certiquality S.r.l. - Cofely Italia
S.p.a. - Comau S.p.a. - Comune di Aosta - CONI Servizi S.p.a. - CONSIP
S.p.a. - Consul System S.p.a. - CPL Concordia Soc. Coop - Comitato
Termotecnico Italiano - DNV S.r.l. - Egidio Galbani S.p.a. - ENEL
Distribuzione S.p.a. - ENEL Energia S.p.a. - ENEA - ENI S.p.a. - Fenice
S.p.a. - Ferriere Nord S.p.a. - Fiat Group Automobiles - Fiera Milano S.p.a. -
FINCO - FIPER - GSE S.p.a. - Guerrato S.p.a. - Heinz Italia S.p.a. - Hera
S.p.a. - IBM Italia S.p.a. - Intesa Sanpaolo S.p.a. - Iren Energia e Gas S.p.a.
- Isab s.r.l. - Italgas S.p.a. - Johnson Controls Systems and Services Italy
S.r.l. - Lidl Italia s.r.l. - Manutencoop Facility Management S.p.a. -
Mediamarket S.p.a. - M&G Polimeri Italia - Omron Electronics S.p.a. - Pasta
Zara S.p.a. - Pirelli Industrie Pneumatici S.p.a. - Politecnico di Torino -
Provincia di Cremona - Publiacqua S.p.a. - Raffineria di Milazzo S.c.p.a. -
RAI S.p.a. - Rete Ferroviaria Italiana S.p.a. - Rockwood Italia S.p.a. - Roma
TPL S.c.a.r.l. - Roquette Italia S.p.a. - RSE S.p.a. - Sandoz Industrial
Products S.p.a. - Schneider Electric S.p.a. - Siena Ambiente S.p.a. - Siram
S.p.a. - STMicroelectronics S.p.a. - TIS Innovation Park - Trenitalia S.p.a. -
Turboden S.p.a. - Università Campus Bio-Medico di Roma - Università
Cattolica Sacro Cuore - Università degli studi di Genova - Varem S.p.A. -
Wind Telecomunicazioni S.p.a. - Yousave S.p.a.
Our membership include organization and
professionals both from the supply and the demand
side of energy efficiency services and solutions.

4. 4
4
FIRE: the association for energy efficiency
Besides being involved in many European
projects, listed next, FIRE implement surveys
and market studies on energy related topics,
information and dissemination campaigns,
and advanced training.
Some of FIRE clients over the years: Ministry
of Environment, ENEA, GSE, RSE, large
organizations (such as Centria, ENEL, Ferrovie
dello Stato, FIAT, Finmeccanica, Galbani, H3G,
Telecom Italia, Unioncamere), universities,
associations, energy agencies and exhibition
organizers.
www.fire-italia.org

5. 5
www.secem.eu
SECEM
SECEM, European System for Certification in
Energy Management, is a certification body
created by the FIRE.
SECEM was the first body to offer third-party
certification for Energy Management Experts
(EMEs) according to UNI CEI 11339 and is
accredited according to the ISO/IEC 17024
standard.
In Italy two standards were developed in order
to promote the qualification of energy efficiency
operators: UNI CEI 11339 for EMEs was issued in
2009, UNI CEI 11352 for ESCOs was published
in 2010. A new standard for energy auditor is
presently under preparation.
Both the mentioned standards are recognized
from the national legislation within the energy
audit obligations for large companies
introduced by the EED directive and the white
certificate scheme.

6. ESCOs and other EE suppliers
6
Energy efficiency
project
Energy intensive
industries
Non energy intensive
industries
Service sector
Public administration
Residential sector
Energy suppliers
Companies involved
in building renovation
Installers
ESCOs
Technologies
producers
Large-scale
distribution
Source: FIRE.
D
E
M
A
N
D
S
U
P
P
L
Y
Cooperatives
All business models and
sales chains need to be
developed to effectively
expand the energy
efficiency market.

7. ESCO: the European definition
7
Technology providers Bank
End-user
ESCO
ESCO financing
Energy savings
Source: FIRE
End-user financing
Bill savings
Financing
Service fee
Energy service
Characteristics of an ESCO:
offer of energy services;
guarantee of performance;
third party financing.
ESCO (directive 2006/32/EC): a natural or legal person
that delivers energy services and/or other energy
efficiency improvement measures in a user's facility or
premises, and accepts some degree of financial risk in
so doing. The payment for the services delivered is
based (either wholly or in part) on the achievement of
energy efficiency improvements and on the meeting of
the other agreed performance criteria.

8. ESCO: two definitions in Italy
8
EPC+FTT
+integrated
approach
Energy
service
providers
≈125
certified UNI
CEI 11352
≈4,500
accredited
≈1,000
active
UNI CEI
11352
Starting from July
2016 ESCOs will have to
be certified to access WhC
and thermal account.
Most of the certified ESCOs
were recognized under the
2010 edition of the UNI CEI
11352 standard. From 2014
on at least one case study of
EPC and TPF is a mandatory
requirement.

9. UNI CEI 11352: certification of ESCOs
These are the contents of the UNI CEI 11352:2014 standard:
1. Scope
2. Normative references
3. Terms and definitions
4. General requirements
5. Checklist for the verification of the requirements
Appendix A: checklist for the verification of the skills.
Appendix B: minimum requirements of ESCOs’ energy service supply.
9 43

10. UNI CEI 11352: certification of ESCOs
4.1 General requirements
ESCO shall:
1. Offer energy efficiency services according to the EN 15900 standard.
2. Carry on the activities listed at point 4.2.
3. Possess the capacity reported by the Standard.
4. Provide contractual guarantees of energy efficiency improvements, with the
assumption of the risks associated with the failure to meet agreed targets. Any
part of the risks (technical and financial) not assumed by the ESCO must be
contractually defined.
5. Link the remuneration of the activities and services provided to the
improvement of energy efficiency and the achievement of the minimum
performance established by contract.
6. Guarantee to the customer the availability of the data measured during the
service.
10 48

11. 4.2 Activities to be offered by the ESCO
Mandatory activities:
energy audits;
verification of compliance of plants and works legislation;
feasibility studies and techno-economic analysis;
intervention planning and preparation of the technical specifications;
installation, commissioning and testing;
management and conduct of operations to ensure maximum performance;
maintenance interventions;
monitoring and verification of fuel consumption and performance;
periodic reports to the client, inclusive of indirect aspects (e.g. water consumption);
support for access to financing and incentives;
user training and information for staff;
energy certification of buildings (if consistent with the scope of business).
Optional activities:
financing of the project;
purchase of energy sources connected to the provided service;
exploitation of renewable energy sources;
optimization of supply contracts for energy carriers.
11 51
UNI CEI 11352: certification of ESCOs

12. 4.3 Skills
Skills are needed to carry on the activities at point 4.2:
4.3.2 Organization
4.3.3 Energy audit
4.3.4 Design
4.3.5 Management
4.3.6 Economic and financial
12 56
UNI CEI 11352: certification of ESCOs

13. Final energy consumption in industry
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
Metallurgy
Mechanical
Chemical
Construc>on materials
Food and tobacco
Paper and prin>ng
Glass and ceramics
Tex>les and clothing
Other manufacturing
Petrolchemical
Non metalliferous minerals
Construc>on industry
Mining and extrac>ve industry
ktoe
Industrial final energy consump5on
Total final consump5on: 30.2 Mtoe
Source: FIRE on MSE data
13
23,6%
13,3%
12,5% 11,6%
9,0%
8,6%
7,8%
4,0%
3,2%
2,9% 2,5%
1%
0,4%
Industrial final energy consump4on
Total final consump4on: 30.2 Mtoe
Metallurgy
Mechanical
Chemical
Construc?on materials
Food and tobacco
Paper and prin?ng
Glass and ceramics
Tex?les and clothing
Other manufacturing
Petrolchemical
Non metalliferous minerals
Construc?on industry
Mining and extrac?ve industry
Source: FIRE on
MSE data
Manufacturing enterprises:
425,000
Energy intensive enterprises:
≈3,000

14. Electricity and thermal energy uses
14
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
Metallurgy
Mining and extrac9ve
industry
Non metalliferous minerals
Mechanical
Food and tobacco
Tex9les and clothing
Construc9on materials Glass and ceramics
Chemical
Petrolchemical
Paper and prin9ng
Other manufacturing
Construc9on industry
Heat to electricity ra,o
(FIRE on na,onal energy balance 2012 data)
Source: FIRE on MSE data
Electricity: 9.4 Mtoe
Thermal energy: 18.8 Mtoe
Source: FIRE on MiSE data.

15. Energy efficiency role in industry
15
Energy efficiency has had a big
impact on energy consumption
in industry, in particular from
2004 on.
When the activities fall, industry
reduces EE projects for lack of
resources and concerns for the
core business.
-12
-10
-8
-6
-4
-2
0
2
4
Mtep
2000-2012 energy consump3on decomposi3on for Italian industry
Varia-on consump-on Ac-vity Structure Value of products Energy savings Other
Source: FIRE on Odyssee-Mure data.
74% of energy consumption
reduction is due to energy
efficiency, according to
Odyssee-Mure data.
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
Mtep
Annual trend of different contribu3ons to final energy consump3on
Varia1on consump1on Ac1vity Energy savings Other Structure Value of products
Source: FIRE on Odyssee-Mure data.
0.27-0.80 Mtoe of annual energy
savings over 2010-2012 according
to Odyssee-Mure VS 1.7-2.0 Mtoe
annual savings linked to white
certificates for industrial projects
over 2013-2014.

16. Some data from surveys
Source: FIRE survey 2008.
16
Most ESCOs are start-
ups and small or
micro enterprises (not
considering eventual
partners and linked
enterprises).
Most ESCOs cover the
industrial sector and
the vast majority are
owned by private
capitals.

17. Some data from surveys
17
Source: FIRE survey 2008.
Cogeneration and RES
are the most supplied
solutions.
84% of the ESCOs
don’t offer an
integrated service.
TPF is used by
one third of the
i n t e r v i e w e d
enterprises.

18. Some data from surveys
18
Type of group/autonomous enterpriseUNI CEI 11352 certification
Bank
Technology provider
Energy service
provider
ESCOs dimension as revenues (2013)Business model (type of ESCO)
Source: CESEF 2015.

19. Some data from surveys
Source: ENEA 2015, CESEF 2015.
19
Turnover, EBITDA, profits (2013)
Average registered capital
76,7%
23,2%
0,1%
ESCOs' revenues per sector
Source: FIRE on ENEA's data
Civil sector
Industry
Agricolture

20. Some data from surveys
Source: CESEF 2015.
20
Capital/
employee
Approved WhC projects
Even if this chart gives a
limited picture (EE can be
deployed outside WhC and
high capital/employee is not
necessarily a good thing), it
shows the need of structured
and capitalized ESCOs.

21. Energy efficiency incentives in Italy
21
White certificates (WhC)
Tax deductions 50% e 65%
RES incentives
(D.M. 6 luglio 2012)
Heat account
Other options (Elena, Jessica, EEEF, structural funds, local funds, etc.)
Source: FIRE.
CHP: high efficiency cogeneration
DH: district heating
RES: renewable energy sources
EEEF: European energy efficiency fund
Energy efficiency Thermal RES Electrical RESCHP-DH
All the national
incentives allow ESCOs
to present projects.
Their role is particularly
strong within WhC.

22. Energy efficiency incentives in Italy
22
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
0
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
7.000.000
8.000.000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Savings related to new projects (toe)
Total savings (toe)
Breakdown of issued WhC by saving evalua?on methodology
Deemed savings projects Simplified monitoring projects Monitoring plan projects
New deemed savings projects New simplified monitoring projects New monitoring plan projects
Source: FIRE on GSE data. Source: FIRE on GSE data.
Almost 80% of WhC
comes from industrial
savings. Around 80%
are assessed based on
on-site measurements.
Almost 96% of the
proposals in 2014 were
presented by ESCOs.

23. Examples of projects presented by ESCOs
23
MULTISECTORAL PROJECTS
PRODUCTION OF NITROGEN ON-SITE
HEAT RECOVERY EXCHANGER FOR USE IN THE
PROCESS
HEAT RECOVERY EXCHANGER FOR USE OUT OF
PROCESS
HEAT RECOVERY WITH SAVING
COMPRESSOR CHILLER WITH MAGNETIC LEVITATION
REFRIGERATOR WITH MANAGEMENT SYSTEMS PLC
TRACTION BATTERY FOR ELECTRIC VEHICLES
MANAGEMENT OF CENTRAL AIR WITH DEDICATED
SOFTWARE
TREATMENT WITH SOLVENTS COMBUSTOR
recuperative CERAMIC
HEATING ROOMS WITH RADIANT STRIPS
LED INDUSTRIAL LIGHT AND REMOTE CONTROL
SYSTEMS
In 2015 FIRE produced a study with typical
industrial EE projects that got WhC.

24. Examples of projects presented by ESCOs
24
SECTOR MONOSECTORIAL PROJECTS
FOOD PASTEURIZATION WITH RADIO FREQUENCY
DESCENDING FILM EVAPORATION AND
CONTINUOUS CRYSTALLIZATION
ROTARY COMPRESSED AIR
DRYIER DRUM
LIME WOOD BIOMASS OVEN
PAPER
EFFICIENCY OF CONTINOUS PAPER
MACHINE
RECOVERY FROM FIBER PRODUCTION
TETRAPACK TISSUE
CEMENT
USE OF SECONDARY SOLID FUELS (RDF) AS
PARTIAL SUBSTITUTION FOR FOSSIL FUELS
CONTINUOUS PARTICLE-SIZE
ANALYZER FREE LIME IN CLINKER
CERAMIC / BRICKS
OVEN FOR TILES COOKING WITH HEAT
RECOVERY
CHEMISTRY
REACTOR FOR POLYCRYSTALLINE SILICON
MANUFACTURING
INNOVATIVE PRODUCTION OF
POLYMERS: PET BARRIER
RUBBER / PLASTICS
RECOVERY OF HEAT GENERATED BY
MECHANICAL FRICTION IN TIRES PROFILING
BUBBLE EXTRUDER FOR PLASTIC FILMS
WORKING NON
METALLIC MATERIALS
(MARBLE, STONE,
DIAMOND CUT WIRE
PETROCHEMICAL
RECOVERY OF GAS TORCH WITH
COMPRESSOR LIQUID RING
LAUNDRY-SERVICES
INDUSTRY
MACHINE WITH PROCESS ELECTROLYTIC
BATCH WASHER
STEEL INDUSTRY ENERGY EFFICIENT MELTING FURNACE
PRINTING / GRAPHICS ROTARY MACHINE
TELECOMMUNICATIO
NS
ENERGY EFFICIENT RADIO BASES
TEXTILE HEAT RECOVERY ON DRYING MACHINE
TRANSPORTATION
MANAGEMENT OF WASHING FOR AIRCRAFT
ENGINES
AUXILIARY SYSTEM FOR THE
PRODUCTION OF ELECTRICITY ON
AIRPLANES
GLASS
EFFICIENCY OF THE MELTING FURNACE FOR
GLASS
Most projects were
presented by ESCOs that
acted as consultants,
supporting the end-user in
delivering the EE project.

25. Conclusions
25
Support schemes can
have an important role
in ESCOs development.
EPC is a key factor for
developing TPF and EE.
Some consideration on the topic of ESCO in industry:
in the next years all the active ESCOs will be certified
UNI CEI 11352;
most of the energy service company presently active
in the Italian market don’t implement EPC and this
reduces third party financing possibilities, especially
with small and insufficiently capitalized ESCOs;
consultant companies that were able to enter the
WhC scheme in the first years have been able to rise
dramatically their capital and revenues, becoming in
many cases ESCOs and being able to use the
collected know-how to support other industries in
designing and implementing new EE projects;
many EE projects in industry are related to the
production process;
in recent years some EPC and TPF projects not linked
with cogeneration, RES, or “simple” EE projects
(electricity motors, compressed air, etc.) started to
be proposed and implemented in industry;
it is important to support the diffusion of EPC in
industry and M&V protocols like IPMVP can help. FIRE
is now the Italian partner of EVO.

26. Thank you!
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