ETP’S Energy Efficiency Innovation Window

The ETP grant supports the introduction of the ESCO-in-a-Box Platform to Southeast Asia.

Energy efficiency offers a cost-effective approach to clean and sustainable business models.  It improves a company’s bottom line with reduced energy consumption while providing environmental benefits.  However, a lack of combined financing and technical expertise often hinders energy efficiency when it comes to project implementation.

The Southeast Asia Energy Transition Partnership (ETP) aims to bridge this gap through its Energy Efficiency Innovation Window (EEIW) grant scheme.  EEIW Grant is awarded to innovative projects that enable EE investments. 

The Energy Efficiency Innovation Window Grant

EnergyPro Ltd. (EP Group) received a grant to introduce the “ESCO-in-a-box®” (EIAB) platform to Southeast Asia, a one-stop solution for establishing a “Super ESCO.”  Super ESCOs combine technical expertise with financial resources, empowering Energy Service Companies (ESCOs) to implement bankable energy efficiency projects.  EP Group adapted the EIAB platform for the Philippines, thus creating the “ESCO-in-a-Box for Southeast Asia” (EBSEA).

What is an ESCO? And how does it become a ‘Super’ ESCO?

Consider a company that helps you save money on your energy bills. They can upgrade your building to use less energy, find ways to make things run smoother, and even pay for the improvements upfront. The company takes care of everything for you, so that you can focus on your work while using less energy and saving money. This is the role of an ESCO, otherwise known as an Energy Service Company. 

A Super ESCO is a centralized entity that aims to provide both technical and financial requirements for energy efficiency projects undertaken by ESCOs. 

Building Capacity and  Understanding the Market

The EP Group’s  project focused on four key areas.  First, the EIAB platform was tailored to the Philippine context.  Second, a business plan for EBSEA was developed, outlining how it would operationalize the platform to expand to regional ESCO capacity.  Third, established Philippine ESCOs were identified and trained on the platform to enhance their capabilities.  Finally, efforts were made to establish a revolving energy efficiency fund.

Market Insights and Collaboration

The project yielded valuable insights. The ESCO Market Assessment Study revealed significant potential in the Philippines; by 2040, it is estimated that the ESCO industry in the country will be worth US$ 160 billion with ‘shared savings’ as the dominant ESCO business model.  Opportunities arise, such as the need to expand ESCO services beyond technology provision and energy auditing.

Instead of establishing a new ESCO, EP Group partnered with existing companies to leverage their technical expertise. Three partner ESCOs received training on the EIAB platform. This collaboration was useful in developing the EBSEA Business Plan, locally adapted contract templates, and identify key challenges in the sector.

Adapting and Moving Forward

Establishing an Energy Efficiency Revolving Fund can be challenging, so to address this hurdle, an Energy Efficiency Fund Design was created. This design outlines potential funding sources and implementation approaches for ESCO business models in the Philippines, fostering broader market growth.

The grant helped highlight the ongoing need to increase appreciation for ESCO services that go beyond energy audits and technology provision.  Spreading awareness about the long-term cost savings of energy efficiency projects will be crucial for the broader market

This project demonstrates the potential of the Super ESCO model to drive energy efficiency investments in Southeast Asia. Expanding local capacity and promoting innovative financing solutions will be key to unlocking a greener future for the region.
For detailed information on the grant project, the Final Report is linked.