Large public projects are delayed without political decision. Large companies pay tribute to the decline in prices on international markets and declining domestic consumption. Meanwhile, hundreds of small companies strive to gain visibility and weight in public debate. The first step is finding a unique voice, and the first effect is to increase the number of associations dedicated to the energy sector. We talked with the representatives of three such organizations to learn what novelties they bring into the market of ideas and what types of action they propose.
Currently, 40 professional and employers’ associations covering various segments of the energy industry are registered in Romania. In what way do you believe the association can be useful for the energy sector?
Cristian Pârvan, President of Private Service Employers’ Association: Professional associations only partially have the same subject and concerns as employers’ organizations. The number of 40, although it may seem exaggerated, illustrates the diversity of ideas, opinions, interests and even mutual appreciation of the quality of their members. The field provides a rich thematic area and new opportunities for business development, which is for the benefit of companies and citizens.
Cătălin Dragostin, President of ESCOROM: The adoption of European Directive 27/2012 on energy efficiency and implementing it in the Romanian legislation through Energy Efficiency Act of 2013 indicate clear steps on the ESCO industry. In addition to implementing specific measures for energy efficiency strategies and policies (the ESCO companies have their well-defined role), the association facilitates ESCO market definition, standardization, quality level, dissemination and proper information, lobby, specific proposals for legislative clarification etc. In the EU, about 40% of the ESCO market of the Member States enjoys the support of a similar association able to represent their members.
Felix Căprariu, President of the Territorial Association for Energy and Energy Efficiency: None of the existing associations tried to bring to the dialogue table all parties involved in energy activity (user, supplier, distributor, producer). We thought ATE3 as a first step in mediating the conflict arising, on the one hand, from the legislative framework, and, on the other hand, from the lack of a common communication policy.
What are the main objectives of the association in terms of energy?
C.P.: The Private Service Employers’ Association (PSP) aims at informing the economic environment and supports the need for use by companies of specialized energy services. In Romania it is discussed almost exclusively about energy resources and energy production. But there is little discussion about the practical importance of knowing and using energy services, in order to constantly reduce the value of bills that must be paid for energy consumed, but also about the new business opportunities based on intelligence, competence and added value. We plan to permanently bring to public attention the new opportunities offered by technological development.
C.D.: Without using big words, our medium term objective is to contribute to the formation/development of ESCO services market and ensure organic growth in this context, especially by increasing the credibility of such an industry, in conditions of the current primary legislation. The long-term objective is that Romania gains a strong, competitive ESCO industry, able to provide know-how and expertise for both its own economy and other economies. But, of course, in the short run the objective is the survival of the Association, which can be ensured by mutual help and coordination between its members, still few in number, both in the Association and outside it.
F.C.: We try to help authorities in the precise identification of a clear line for each party involved in the energy efficiency process, a dynamic process.
How many members does the association currently have and what number of members do you plan to reach in the coming year?
C.P.: Currently, PSP has in the energy services sector 4 members that offer new solutions for ensuring heat, electricity and, in the future, cold generation, expert advice and opportunities for private financing (investment funds). As a growth strategy, it is true that we are interested in increasing the number of members, which will allow a quick and professional dissemination of ideas and knowledge of a wide range of specific issues. At the same time, it is also important the willingness of members to have an active presence allowing the entire group to benefit directly, quickly and professionally from information/new business development opportunities.
C.D.: ESCO area is, in Romania, a niche domain, which involves a lot of expertise and high risks (if you are alone and independent). For this reason, the number of these companies is low, slightly over 10. There are few “pure” ESCO companies, which can survive without the support of a large associated company: a large equipment producer or energy producer, international financial institution etc. Thus, lately several companies have given up the ESCO activities or were even disestablished.
Members of ESCOROM association account for around 40% of the companies currently active. Other 40% have expressed the intention of joining us soon.
F.C.: There are three founding members, 10 members with full rights and over 30 companies are in the process of becoming members of ATE3. There are especially SME companies, but we also had the surprise of noticing that there are requests from NGOs, as well as from operators of distribution networks, which understood what we bring new compared to other associations.
What are the benefits that a member of the association has?
C.P.: Bringing together some domain-specific concerns, but also related (equipment, IT, current legal requirements or in preparation) allows members a better position for those companies in the economic interest and even identifying new opportunities yet unexplored, which could contribute to developing the core business, according to new service requests.
C.D.: ESCOROM could be the legitimate voice of ESCO industry in Romania. In this capacity, the association will be involved in any legislative measure or of other nature that will influence the market and the activity of its members, to defend their interests. The association can be a platform for meeting interesting and/or complementary projects of its members, which will facilitate the establishment of consortia to provide integrated technical solutions.
We believe the association will be attractive to banks and other financiers, to which it can provide accurate information and even education, since the specific of ESCO activities are little known to banks in general.
F.C.: We provide logistic support when it comes to participation to public debates on rules, regulations, laws in the field. At the same time, we are a point of information when it comes to national financing, from EU funds, by partnerships between the Member States (e.g. Danube Strategy). Knowing well the activity of a member, we can indicate the financing tools that it can gain access to and help it with human resources channeled on that financing. If we take a look at the SME area, where we tend to maintain, we can notice that there is no financing for energy efficiency. We try to bring to the attention of members finance packages and inform them in a timely and complete manner.
How is the association financed?
C.P.: The Private Service Employers’ Association is financed by contributions received from members, sized in such a way that it does not represent a financial burden (starting from RON 100 and reaching up to RON 3,000/year), sponsorship, EU funds etc.
C.D.: Through membership fees, sponsorships, events and courses that we intend to organize, in order to promote the association and ESCO services. We do not exclude international projects, with external funding.
F.C.: At first, the three founding members were the main financiers. This year we want to succeed a first project on Romania – Switzerland cooperation, through which we begin budgeting the activity, especially in the field of innovation and import of good practice from Switzerland. In tandem, we launched three projects on the support of NGO activities: a marketing project, one on funding sources for obtaining qualified personnel, and funding participation in events conducted at EU level. Contributions of members are the lowest step when it comes to our sources of funding to maintain the organization.
What are the concrete actions you plan for 2015?
C.P.: For 2015, in the segment of energy services we intend to formulate a plan for resolving heating for some localities disconnected over the last 25 years from the district heating systems, by offering ESCO services based on local innovative solutions (biomass/municipal waste) or of international companies (micro CHP).
The plan will be submitted to the Ministry of Energy, Parliament, ANRSC and ANRE to enforce the National Plan for the use of biomass, prepared by the Ministry of Economy since 2010, with support from the Environment Agency in the Netherlands, plan from which basically nothing has been achieved for 5 years.
C.D.: 2015 is the critical year, on which the survival of the association will depend, given the small number of specialized companies and their financial strength. We must increase the number of member companies, establish the strategy of the association and initiate contacts at international level. After the official launch in March, we have other actions to promote the association and the ESCO concept in the field.
F.C.: We plan to have about 50-60 new members this year. The initial target of 100 new members has been resized after we realized that many would like to get involved, but few have the physical ability to participate in actions that we sketch and ATE3 association does not want members that do not take a stand on the issues raised for discussion and resolution. We are at the stage where we are approached by those who see us supporting ideas in events, in the media, see us really involved in the dynamics of public policy dedicated to energy and public policies of the sector in the economy and society. Since the participation in the Energy Breakfast Club, organized by energynomics.ro, applications to join the organization have started.
—————————————————-
The full version of this article can be read in printed edition of energynomics.ro Magazine, issued this March.
In order to receive the next issue (June 2015) of energynomics.ro Magazine for free, we encourage you to write us at [email protected] to include you in our distribution list.