Technical Assistance for the Operationalization of a Super ESCO 

The Government of Kenya, through the Kenya Power and Lighting Company Ltd (KPLC), is addressing rising public sector energy costs, the high electricity customer debt of state agencies, and the need to strengthen energy efficiency (EE) initiatives. In this context, the African Development Bank (AfDB), through its Sustainable Energy Fund for Africa, is providing technical assistance to develop a utility-led Super energy service company (ESCO) model focused on reducing energy use in public facilities. Econoler has been selected by the Kenya Power and Lighting Company (KPLC) to provide technical assistance in the operationalization of a Super ESCO under its Institute of Energy Studies and Research (IESR) by building internal capacities, developing operational tools, supporting project pipeline development, and establishing partnerships with private ESCOs. The initiative targets hospital, school, public building, and municipal sectors with the goal of scaling EE implementation and enabling the KPLC Super ESCO to lead Kenya’s transition to a sustainable energy efficiency market.

This mandate is aimed at supporting the KPLC in developing a sustainable EE implementation model for public sector facilities and other strategic segments in Kenya through the operationalization of a Super ESCO.

Under the mandate, Econoler is carrying out the following tasks:

• Support the identification, procurement, and supervision of energy audit firms in accordance with AfDB rules;

• Develop and guide the implementation of a robust portfolio of EE projects based on audit results;

• Assist in structuring the internal organization of the Super ESCO, including process manuals, contract templates, risk management tools, and monitoring frameworks;

• Provide advice on legal, financial, and accounting systems, including setting up digitized management and reporting tools tailored to Super ESCO operations;

• Design energy performance contract models appropriate for different client segments and guide the setup of an asset and liability management system;

• Map the EE ecosystem in Kenya and develop sector-specific business models and marketing tools to promote Super ESCO services;

• Propose and help implement a comprehensive communications strategy and awareness materials across digital and traditional platforms; 

• Develop and deliver training for IESR and Super ESCO staff on project financing, risk analysis, and donor engagement;

• Support the creation of internal and external procurement, documentation, and accounting procedures aligned with Kenyan regulations and AfDB standards;

• Design an appropriate organizational structure for the Super ESCO, including departmental roles, responsibilities, and staffing profiles.

Through this technical assistance, Econoler is enabling the KPLC to build institutional capacity, establish a functional and scalable Super ESCO model, and catalyze the development of a vibrant EE market in Kenya. The client will benefit by gaining the tools, frameworks, and trained personnel required to lead EE initiatives, unlock financing, and deliver measurable energy savings and environmental benefits across the public and private sectors.