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Can Energy Service Companies Increase Investment in Energy Efficient Lighting in Eastern Europe? The Case of Hungary
Ian BrownExpert, Directorate-General XVII - Energy, Commission of the European Communities, Budapest, Hungary Abstract There exists a significant potential for improved energy efficiency through the use of lighting technologies in Western Europe, yet the slow up-take of these cost effective technologies indicates that capital is not allocated to such cost effective investments. This problem is magnified in Eastern Europe - the shortage of capital imposes a severe restraint of the take up of efficient and highly cost effective lighting technologies. Against this background, this paper examines the question of whether third-party finance provided by energy service companies can help to improve energy efficiency in lighting by providing both the capital and the technical knowledge necessary. The available data on electricity use for lighting is given, but the shortage of data (and question marks surrounding its reliability) are problems in Eastern Europe. The paper then discusses whether third party finance could be used for energy and lighting efficiency improvements in the public sector in Hungary, and the question of who could provide such third-party financing services. The ability of existing and potential lighting energy service companies is examined. In particular, the access to capital of such companies is commented on. Finally the paper looks at the roles of different actors - banks, the European Community, and the Western energy service companies in encouraging the development of third-party finance for lighting efficiency in Hungary, making some (low-key) recommendations for these bodies.
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