Strengthening the ESCO Market, EE Financing, and ESCO Development for the Public Sector

  • Client

    World Bank (WB)

  • Year

    2021-2023

  • Region
    • Asia and the Pacific
  • Services
    • Energy Audits, Energy Efficiency Project Identification, and Energy Savings Measurement and Verification
    • Energy Performance Contracting and ESCOs
    • Climate Finance Funds, Mechanisms and Products
  • Countries

    Turkey

The objective of this assignment was to support the public buildings sector in adopting energy performance contracting (EPC) models for deep energy efficiency (EE) retrofits. Econoler supported the lead firm (Stantec) in providing policy and regulatory support to enable the public sector to procure energy service company (ESCO) services. This included the potential use of the Super ESCO model through the development of a public sector Super ESCO initiative. Econoler also provided technical support to ESCOs in targeting public sector projects as well as to the public sector in developing a national EE program in public buildings and using pay from savings models suitable for financing by local financial institutions. The assignment was expected to contribute to EE renovations in approximately 300-500 public buildings. 

Under this assignment, Econoler led the following tasks 

  • Review the relevant public laws as well as develop a gap analysis report and make recommendations on the gaps that limit the implementation of deep retrofit projects in the public sector;

  • Review existing gaps and develop a gap analysis report on public sector EE financing, with recommendations on how to address the gaps;

  • Provide recommendations on how the Super ESCO model could be used to support the implementation of EE projects in the public sector;

  • Develop a national program plan for public sector EE that targets, inter alia, central and municipal buildings, public lighting, water, etc., including relying on sustainable financing mechanisms to serve the broader public sector;

  • Develop a financing agreement and project pipeline report, including a financial model for the initial three to five years for a financial institution acceptable to the Ministry of Energy and Natural Resources and the World Bank;

  • Develop EPC contracts and specification templates;

  • Develop financing agreement templates;

  • Develop detailed guidelines on measurement and verification;

  • Develop detailed guidelines and procedures for ESCO dispute resolution procedures.

The project achieved satisfactory results, and thirteen reports were presented to the World Bank.