Figure B.5 - Typical Structure of a Super ESCO Source: Limaye 2013b Examples of super ESCOs include the New York Power Authority (NYPA) in the United States, Fedesco in Belgium, Fakai Super ESCO in China, and Energy Efficiency Services Limited (EESL) in India (see Box B.6). Commercial Financing with ESCOs The business models typically utilized by ESPs are illustrated in Figure B.6. Before an energy service market for the public sector can be developed, the government must first undertake a set of legislative, regulatory, and policy initiatives targeted at: Creating a large and stable demand for energy services projects in the public sector; Removing barriers to public procurement of EE services and establishing clear regulations, rules and procedures for public agencies to work with private ESCOs; and Facilitating adequate and affordable financing of private ESCO projects. Table B.1 provides more detail on these initiatives. Figure B.6 - Summary of Business Models for Energy Service Companies (ESCOs) Source: World Bank 2014c Table B.1 - Government Actions to Foster Private ESCOs Create Demand for Remove Barriers to Public Facilitate Financing EE Services Procurement of EE Services of ESP Projects Increase PA knowledge and Allow PAs to sign Establish EE revolving awareness of ESPs contracts fund with loan facility Increase PA capacity to Allow retention of energy cost Establish EE revolving identify ESP opportunities savings to pay ESPCs fund with ESAs Require EE targets and Change procurement rules to Provide budgetary grants action select most value, not least Provide risk-sharing cost Develop standard, templates, facility benchmarks, and M&V Exclude ESP payments from Facilitate forfaiting of schemes PA debt Establish public or super Organize workshops with Require consumption-based ESCO PAs and ESPs billing for district heating Aggregate similar projects PAs to engage in PPPs across PAs and EE equipment leasing Accredit or certify ESCOs Encourage PAs to use simple ESCO business models ESA = energy service agreements; ESPC = energy savings performance contract; M&V = measurement Note: and verification; PA = public agency; PPP = public-private partnership. Source: World Bank 2014b C -
Figure B.5 - Typical Structure of a Super ESCO Source: Limaye 2013b Examples of super ESCOs include the New York Power Authority (NYPA) in the United States, Fedesco in Belgium, Fakai Super ESCO in China, and Energy Efficiency Services Limited (EESL) in India (see Box B.6). Commercial Financing with ESCOs The business models typically utilized by ESPs are illustrated in Figure B.6. Before an energy service market for the public sector can be developed, the government must first undertake a set of legislative, regulatory, and policy initiatives targeted at: Creating a large and stable demand for energy services projects in the public sector; Removing barriers to public procurement of EE services and establishing clear regulations, rules and procedures for public agencies to work with private ESCOs; and Facilitating adequate and affordable financing of private ESCO projects. Table B.1 provides more detail on these initiatives. Figure B.6 - Summary of Business Models for Energy Service Companies (ESCOs) Source: World Bank 2014c Table B.1 - Government Actions to Foster Private ESCOs Create Demand for EE Services Remove Barriers to Public Procurement of EE Services Facilitate Financing of ESP Projects Increase PA knowledge and awareness of ESPs Increase PA capacity to identify ESP opportunities Require EE targets and action Develop standard, templates, benchmarks, and M&V schemes Organize workshops with PAs and ESPs Aggregate similar projects across PAs Accredit or certify ESCOs Allow PAs to sign contracts Allow retention of energy cost savings to pay ESPCs Change procurement rules to select most value, not least cost Exclude ESP payments from PA debt Require consumption-based billing for district heating PAs to engage in PPPs and EE equipment leasing Encourage PAs to use simple ESCO business models Establish EE revolving fund with loan facility Establish EE revolving fund with ESAs Provide budgetary grants Provide risk-sharing facility Facilitate forfaiting of Establish public or super ESCO Note: ESA = energy service agreements; ESPC = energy savings performance contract; M&V = measurement and verification; PA = public agency; PPP = public-private partnership. Source: World Bank 2014b C -