Fostering the Development of ESCO Markets for Energy Efficiency
This guidance note, about Energy service companies (ESCO), was prepared under the Energy Efficiency Outreach activity of the World Bank’s Europe and Central Asia region. The activity is sponsored by the Energy Sector Management Assistance Program,...
| Main Authors: | , , |
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/03/26065397/fostering-development-energy-service-companies-esco-markets-energy-efficiency http://hdl.handle.net/10986/23949 |
| Summary: | This guidance note, about Energy service
companies (ESCO), was prepared under the Energy Efficiency
Outreach activity of the World Bank’s Europe and Central
Asia region. The activity is sponsored by the Energy Sector
Management Assistance Program, a multidonor technical
assistance trust fund administered by the World Bank and
cosponsored by thirteen official bilateral donors. ESCO can
aid energy efficiency efforts by providing technical skills,
assuming performance risks, facilitating access to finance
from commercial lenders, and enabling energy users to repay
initial costs through future savings. Although many attempts
to encourage the development of ESCO markets in developing
countries have failed, some recent experiences demonstrate
how governments can help by promoting simple business
models; facilitating ESCO financing; making legislative,
regulatory, and policy changes; and creating demand. The
challenges are real as the ESCO models are complex and
require strong legal, financial, accounting, and business
infrastructure,which is often lacking in developing
countries. However, a combination of simple ESCO models,
dedicated financing, enabling policy, regulatory
initiatives, and increased public sector demand has resulted
in the development of sizeable ESCO markets in some countries. |
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