The paper focuses on the Energy Performance Contract (EPC) as a business model for energy efficiency. More precisely, it examines, using two case studies, enablers and disablers – from an economic, legal and institutional/managerial perspective – for advancing this arrangement across the EU. The EU has set a 20% energy savings target by 2020 (roughly equivalent to turning off 400 power stations), with an even more ambitious target of 27% by 2030. To reach these ambitious targets, the investments needed are approximately EUR 100 bn/year across the EU (according to the European Commission). Energy efficiency is not, as fervent proponents often claim, the low hanging fruit in terms of investment efforts. Like any other sub-sector, such as transmission and distribution, it demands innovative financing instruments to ensure adequate scale-up. In the paper, I use two comparative case studies to identify and classify the disablers and enablers of Energy Performance Contracting/Energy Services Companies (ESCOs) development: the European frontrunner, namely Germany, and a laggard, namely Romania. As research methodology, I use literature review, comparisons between similar government policy planning and evaluation documents, and stakeholder interviews. While academic literature on the topic (