Czech ČEZ to focus more on energy services, ČEZ ESCO revenues set to triple

ČEZ ESCO Group, part of ČEZ Group, plans to triple its revenues by 2020. The group generated CZK 2 billion in revenue in 2015, plans CZK 3 billion next year and aims to generate up to CZK 9 billion in revenue by 2020. 

The ČEZ ESCO Group comprises five companies focused on providing energy products and services (ČEZ ENERGO, s. r. o., ČEZ Energetické služby, s. r. o., EVČ, s. r. o., ENESA, a. s., ČEZ Solární s. r. o.). The group provides a range of products and services, from energy audits and photovoltaic plant installations to the direct construction of cogeneration units.

The company sees significant potential particularly in energy savings, an area in which Czechia as a whole has room for further development. Under the European Energy Efficiency Directive, Czechia is to save approximately 50 PJ in final energy consumption. So far, Czechia has achieved only a fraction of these savings.

“Customers can request virtually anything related to energy from us. Whether they are dealing with boiler rooms, heat or cooling sources, heat pumps or solar panels, intelligent heating systems, or need to operate a transformer substation.”
Michal Rzyman, CEO of ČEZ ESCO Group.

One of the typical services provided by ČEZ ESCO Group is services contracted through EPC contracts (energy performance contract). EPX contracts are commonly concluded, for example, when new lighting is installed in industrial facilities. The principle of EPC contracts is that the investment cost is repaid from the resulting cost savings, which in the case of lighting, for example, can be reduced by up to 40 %.

Providing energy services and products is an area on which ČEZ wants to focus more in the future. At present, ČEZ Group needs to offset declining revenues caused by falling electricity prices on exchanges in the Central European region. The price decline is mainly due to falling hard coal prices, increased electricity generation from subsidised sources and the low carbon allowance price, which currently stands at around 5 EUR/t CO2.