Empiric Results from the Successful Implementation of Data-Driven Innovative Energy Services in Buildings

The residential building sector is critical to the success of Europe’s 2030 and 2050 decarbonization targets. To achieve that success, this paper demonstrates how advanced Pay-for-Performance (P4P) energy services for energy service companies (ESCOs) can address challenges by leveraging low-cost data collection systems in buildings to offer a combination of revenues stemming from informed decision-making, energy management optimization, and active participation in demand response schemes. Our methodology includes (i) preliminary assessments to identify each building’s occupancy patterns, equipment, and smart readiness, (ii) the installation of sensors and data gateways, (iii) the deployment of data-driven energy efficiency and demand response measures, and (iv) the evaluation of non-energy services such as comfort and air quality monitoring. We conducted empirical tests in three distinct building typologies: a multi-apartment residential building in Spain, detached dwellings in Croatia, and a hotel bungalow in Greece, to measure self-consumption savings, occupant-driven energy use behaviour changes, and the potential for explicit demand response. The results indicate overall payback periods of less than 10 years, although effectiveness varies depending on occupant engagement, building suitability, and the local energy market context. These findings reinforce the technical and economic feasibility of enhanced ESCO smart services and provide practical insights for scaling up data-driven solutions to advance Europe’s energy and climate objectives.

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