Decision Support Tool for Procurement & Bidding Strategies for ESCO's

The energy consumption in the Netherlands is rising significantly, on average 1.09 percent year since 1983 (CBS, 2015). Next to this the European Union (EU) set a target to increase the energy efficiency of the EU by 20% in 2020. This means that in spite of an increase in energy demand, the energy efficiency has to increase. One of the possible outcomes for the energy efficiency problem are Energy Service Companies (ESCos). ESCos basically deliver energy services and other energy efficiency improvement measures. However the Dutch ESCo market is lacking behind in contrary to other European counties. ESCo approaches could be applied in the redevelopment of utility buildings. Nowadays, still large construction companies win tender procedures, to redevelop utility buildings. Building owners’ behavior should experience a transition towards awareness about the benefits of an ESCo approach instead of the traditional process. Therefore this research shall answer the research question: What strategy should ESCos apply under which tender procedure in urban redevelopment projects to increase success chances for an ESCo approach? This research question is answered by combining the research methods Fuzzy Delphi method (FDM) and Game theory. First, a literature review has been conducted to define a list of procurement criteria which are part of ESCo tender procedures. This list has been rated, validated and functioned as input for the FDM questionnaire. Respondents were asked to evaluate the impact of procurement criteria under different game outcomes. Next to this, respondents gave their preferences over the four different game outcomes. The respondents consisted of two homogeneous groups, namely ESCo experts and technical consultants which represent the customers. The results illustrate that both players have the same opinion in the common traditional process, but differentiate in more complex processes. In a most economical attractive tender (MEAT), ESCos should focus on the construction of a solid business case based on energy performance levels and comfort levels for the end-users. The results are captured in a decision support tool. The tool can demonstrate for both parties how the payoff will be react on the in- or exclusion of specific criteria. ESCos can proactively visit customers to illustrate hypothetically the benefits of an ESCo approach.