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Through the formulation of the 2020-targets, the EU has set as objective to reduce the use of primary energy with 20 % by2020. The target is supposed to be reached through increasedenergy efficiency. Despite a large potential for energy efficiency, cost effective measures are not always implemented which isexplained by market failures and barriers to energy efficiency. This difference between potential energy-efficiency and what is actually implemented, is referred to as the energy-efficiencygap. Energy service companies (ESCOs) have been put forth asa potential means of overcoming this gap to energy-efficiency.Well-functioning markets for ESCOs are therefore addressedas one of the key elements in the Energy Services Directive(ESD), a tool for the economy to move towards increased energy efficiency and sustainability. In other words, the developmentof the energy service market is of crucial importance if a Member State is to achieve the ambitious 2020-target. The aim of this article is to analyse the market for energyservices towards industrial small- and medium sized Enterprises(SMEs). Focus will be on the Swedish market, howevergeneral conclusions may be drawn from this example. A large part of the potential for energy services is not being implemented today - this is identified as the energy-service gap. The gap is explained by transaction cost economics; relatively hightransaction costs for consulting ESCOs inhibit further marketdevelopment. The ESCO market in Sweden is estimated, by the Swedish state, to still be immature but have potential forfurther development. A government report does not identify the market barriers on the energy service market as market failures. By introducing market development mechanisms (e.g.standardized contracts and an accreditation system) the state could decrease the transaction and thus the energy service gap. Reducing the energy-service gap could be a cost effective wayof reducing the energy efficiency gap and reach the 2020-target.

Energy management plays an important role in the transformation of industrial energy systems towards improved energy efficiency and increased sustainability. This paper aims to study driving forces for improved energy efficiency in some European energy-intensive foundry industries. The investigation has been conducted as a multiple case study involving 65 foundries located in Finland, France, Germany, Italy, Poland, Spain, and Sweden. The most relevant perceived driving forces were found to be financially related, followed by organizational driving forces. Nevertheless, some differences can be appreciated according to the firm's size and country. Almost half of the studied foundries lack a long-term energy strategy, about one-fourth stated that they have used Energy Performance Contracting (EPC), and only approximately one in ten foundries have used Third Party Financing (TPF). Among the studied foundries, three out of five have conducted an energy audit. On average, the energy saving potential according to the respondents is stated to be 7.5%. In conclusion, energy management in the European foundry industry, despite increasing energy prices and extensive energy policy actions taken by the EU, still seems to have great improvement potential, calling for future research and policy actions in the field. ; Funding Agencies|European Commission||

In order to improve energy efficiency and reach the EU:s 20-20-20 primary energy saving target, focus has mainly been on diffusion of technology. Previous studies have illustrated large untapped energy saving potentials from implementing energy management practices in firms. Energy management practices have large effects on energy utilization and also a short pay-back time. According to these studies, energy management practices also effect investment decisions and the outcome of investments in energy efficient technologies. This paper investigates to what extent energy management practices influence firms estimation of energy efficiency potentials. Further it investigates two Swedish policy programs that promote industrial energy management practices: The Programme For improving Energy efficiency in energy-intensive industry (PFE) and the energy audit program and whether these have increased energy management practices in Swedish firms. A multiple case study has been conducted in order to investigate energy practices in firms in different industrial sectors. Employment of energy management varies between firms. The firms estimate equal energy efficiency potentials from implementation of energy efficient technology as for energy management practices. In total the firms estimate energy efficiency potentials of 12 %. The study shows that firms that have participated in the programs work more actively with energy management. This can be illustrated by the fact that 75 % of the firms that have not participated in any of the programs lack a person responsible for energy management and 50 % also lack a long term energy strategy. For firms that have participated in the programs the corresponding figures are 30 % and 33 %. The results indicate an untapped potential of energy efficiency measures that could be reached through increased energy management in Swedish industries.

In order to reach the EU: s 20–20–20 primary energy savings target, energy efficiency needs to increase. Previous research on energy use and energy efficiency has focused mainly on the diffusion of energy efficient technologies. The discrepancy between optimal and actual implementation of energy efficient technologies has been illustrated in numerous articles and is often referred to as the energy efficiency gap. However, efficient technologies are not the only ways to increase energy efficiency. Empirical studies have found that a cost-effective way to improve energy efficiency is to combine investments in energy-efficient technologies with continuous energy management practices. By including energy management into an estimated energy efficiency potential this paper introduces an extended energy efficiency gap, mainly in manufacturing industries and the commercial sector. The inclusion of energy management components in future energy policy will play an important role if the energy savings targets for 2020, and later 2050, are to be met in the EU.

Using industrial excess heat in District Heating (DH) networks reduces the need for primary energy and is considered efficient resource use. The conditions of Swedish DH markets are under political discussion in the Third Party Access (TPA) proposal, which would facilitate the delivery of firms' industrial excess heat to DH networks. This paper estimates and discusses the untapped potential for excess heat deliveries to DH networks and considers whether the realization of this potential would be affected by altered DH market conditions. The results identify untapped potential for industrial excess heat deliveries, and calculations based on estimated investment costs and revenues indicate that realizing the TPA proposal could enable profitable excess heat investments.