Day 5: ESCOs Rules and Roles

PLAN SOLAIRE TUNISIEN

ESCOs rules and roles

Néji Amaimia
neji.amaimia@gnet.tn

WHAT IS AN ENERGY SERVICES COMPANY (ESCO)?

An ESCO is a single firm that manages and
coordinates all phases of an energy project and
provides many types of services
services.

A‐ Common services:
• Energy audit;
gy ;
• Construction management services, including preparation of performance
specifications,
specifications project design and project commissioning;
• Project financing;
• Project monitoring and guarantee of energy savings;
d f
•Awarness and capacity buildings;
•Equipment maintenance and operations;
•Others (administrative services, specific consulting,…).

B‐ Types of E
B T f Energy S i
Services C
Compagnies:
i
The main types are:
•Large companies with existing energy equipment businesses:
Large
• They have all the technical and financial expertise within their own staff;
• They generally focus on large projects;
They generally focus on large projects;
• They provide all project services from energy audit through equipment
maintenance to monitoring;
maintenance to monitoring;
•Some of them provide administrative services such as personnel to manage
and operate the facility;
and operate the facility;
•Many are directly involved in the energy equipment business, especially, heating,
cooling, ventilating and air conditioning equipment and controls
cooling ventilating and air conditioning equipment and controls

B‐ Types of Energy Services Compagnies:
•Companies that were previously energy consultants:

• They have expertise and knowledge with many types of technologies;

• Larger ones ha e all the technical e perts within their compan while
have experts ithin company hile
smaller ones will team up with others to provide technical services such as
energy audits, project design, project management and monitoring;

•Services such as equipment maintenance are generally contracted to other
compagnies.

B‐ Types of Energy Services Compagnies:
•Companies specialized in one technology:
Companies

For specialized technolgy like lighting, cogeneration, cooling,
heating, air conditionning these kind of ESCOs are involved in
the
th manufacture, sale of equipment and can also provide
f t l f i t d l id
technical analysis, equipment specifications and project
management.

C‐ Comparison with other types of contractors:
ESCOs differ from architectural and engineering (A&E) firms in several
g g ( )
ways. While both supply engineering services, ESCOs also can provide or
help arrange financing, maintain equipment and guarantee project
performance or savings
savings.

Some ESCOs enter into performance contracts with guarantee that the
cost of the project is recovered from energy savings. On the other hand,
A&E firms provide only technical analysis, engineering design and,
sometimes, construction management services.

WHAT TYPICAL SERVICES DO ESCOs PROVIDE?
Historically ESCOs provided a complete package of services.
A recent Energy Commission survey indicated that most ESCOs will
gy y
bid for specific services, tailoring their service to meet customer
needs.

Typical ESCO services include
ESCO services include

A‐ Energy audit:
•An energy audit analyzes the operation of your major energy‐
using systems and d t
i t d determines whether i
i h th improvements can i
t increase
efficiency;

•A comprehensive audit, however, analyzes all cost‐effective
energy projects for lighting, HVAC equipment, cooling, domestic
hot water systems controls and energy generation systems
systems,
(generally prepared when performance contracting is involved)

•Comprehensive audits are referred to by the ESCO industry as an
“investment grade audit.”

B‐
B Construction management services
services:
By serving as a construction manager and overseeing the installation of
the project, an ESCO can:

•Develop the overall project approach;
•Manage the selection of contractors;
•Manage contractor work;
•Provide on‐site construction management and inspection services;
•Obtain all regulatory permits;
g yp ;
•Direct equipment testing, commissioning and monitoring to verify
energy savings;
•Ensure the awarness and the training of the client’s staff.
Ensure the awarness and the training of the client s staff.

An ESCO may perform some or all of these tasks

D‐ Project guarantees:
Having the ESCO guarantee project performance may help get the
project approved through management. Project guarantees, however,
are complex and tend to increase project cost.
It may take a long time to negotiate a mutually acceptable agreement.
One of the complexities is reaching agreement on an acceptable energy
use baseline and the basis for calculating future savings.
To
T verify th t th project meets th performance guarantees, ESCO
if that the j t t the f t ESCOs
provide project monitoring and verification. Monitoring can be done by
installing meters on specific equipment to measure equipment
g p q p q p
performance and operation, or it can involve tracking utility bills in the
affected buildings.

•Since it requires that data be collected and evaluated for the
Since it requires that data be collected and evaluated for the
period of the performance agreement, project metering can be
expensive.
g y gy
•Most ESCOs generally do not install meters but will use energy
accounting software to track utility bills.

•ESCOs charge until five percent of the project cost for the guarantee;
g p p j g ;
•Some believe that guarantees are “not worth much” since there are
many ways to account for energy savings and any method is subject to
savings,
“error and interference";
•In many projects, only some equipment is monitored and the data is
extrapolated for the equipment not monitored. But, in some others, all
the equipment are monitored and the energy saving is directly
calculated.
calculated

The calculation of energy savings is subject to analysis and
assumptions made by the ESCO; often it is difficult to dispute
their findings. As a result, energy savings cannot be determined
with absolute certainty.
y

E‐ Equipment maintenance and servicing:
•In order to guarantee performance or savings, an ESCO often will
require a maintenance contract and some control over the
equipments. This helps the ESCO to ensure that the installed
equipment will achieve th guaranteed savings stipulated i th
i t ill hi the t d i ti l t d in the
contract;
•Normally, the annual cost of a maintenance contract is less than
Normally,
five percent of the project cost and depends on the level of service
desired;
•Maintenance services can include tracking utility bills, reviewing
operation strategies, reporting on equipment operating problems,
and repairing and replacing equipment
equipment.

F‐ Other services:
Some ESCOs provide a variety of other services, such as:
•Administrative and technical support: qualified staff can be provided to
operate and manage the project;
p g p j
•Training: with proper training, the client’s in‐house staff can operate and
maintain the equipment allowing the client to forego (cad:renoncer à)
equipment,
the need for ESCO maintenance;
•Specialized technical help: ESCO can monitor indoor air quality, evaluate
electricity and gas purshase or accomplish other specialized tasks.

WHAT ARE TYPICAL CONTRACTS?

There are a number of ways to contract with ESCOs depending on
the degree of risk that the organization assumes. If the ESCO
assumes all the risks and guarantees project performance, the
cost for their services will be higher.

The main types of contracts are as follows:

A‐ Shared savings:
In this arrangement, cost savings are measured according to a
mutually agreeable method and are shared between the client and
the ESCO on either a fixed or variable basis.
Examples of typical shared arrangements include:
• Variable fee: The fee depends on a fixed percentage of the
monthly savings. As the monthly savings fluctuates, so does
the fee.

• Scaled fee : The fee declines over time as the ESCO
recovers its investment
investment.

• Specified fee and split of savings in excess of the fee: The
fee is fixed and any excess savings is split between the ESCO
and the client;

• Savings go to the ESCO until a specified amount is
reached: The ESCO initially gets all the cost savings from
the project until a specified amount. After that point, the
ESCO splits the savings with The client.

Regarding to these arrangements, some areas are to consider:

•Shared savings contracts allow the client to put the financing off
balance sheet since th ESCO provides th fi
b l h t i the id the financing. H d ’t
i He don’t
need to use its borrowing capacity.

•The ESCO carries financing, credit and performance risks. Since
the ESCO assumes all these risk, the cost of money or the interest
charged is higher than in other options.

•Public agencies cannot share savings, with private companies if
tax‐exempt financing is used. In shared savings contracts, ESCO
financing is based on commercial interest rates which is higher
than tax‐exempt fi
th t t financing.
i

•If there are no cost savings, the ESCO does not get paid. If savings
If
are greater than expected, the client will pay more than expected
for the use of the equipment. The ESCO and financier hope that
the future price of energy will increase since it will increase their
share of the savings.

B‐ Guaranteed savings contracts:
Contracts can be set up to guarantee that the energy savings from
the project will meet or exceed a certain minimum amount (either
th j t ill t d t i i i t ( ith
the full amount or a percentage of the savings specified in the
gy )
energy audit).

Some areas have to be considered:
•The savings are guaranteed to make client’s equipment payments
or debt ( cad créance) service, provided that energy prices do not
fall below a specified floor price The savings level is guaranteed to
price.
meet or exceed the specified minimum, usually an amount greater
than client’s equipment payment.

B‐ Guaranteed savings contracts:
•Project financing is fully provided by the client through a loan,
capital lease or operating lease. The financier does not rely on the
savings guarantee since the client is responsible for the financing.
The
Th guarantee’s presence or absence h littl effect on th cost of
t ’ b has little ff t the t f
funds.
•This approach allows the use of tax exempt f
f financing and allows
the client to retain more of the savings than in shared savings
contracts.
contracts Tax‐exempt financing offers the best interest rates
rates.

C‐ No guaranteed savings contracts:

In this type of contract, the ESCO only provides the energy audit,
design, construction management and commissioning. There is no
guarantee of th energy savings or performance.
t f the i f

The client assumes the responsibility and financial risk. In
exchange, he receives all the saving benefits associated with the
projects.

D‐ Other considerations:
Once the client is experienced in getting energy efficiency projects
installed, he may realize that these projects often are low risk. He
may forego the need for a guarantee and shoulder more of the risk
y g g
in exchange for increased financial benefits.
For example, the client may:

D‐ Other considerations:
•Decide to purchase energy efficient equipment and rely on the
manufacturer’s warranties, foregoing an ESCO guarantee;
•Perform the own post‐installation maintenance and accept the
risk of accountability within it own work f
ik f t bilit ithi its k force;
•Finance the installation and hire a construction manager or ESCO
to be accountable for poor workmanship during installation;
•Forego the guaranteed savings if he is confident that the
projections in the energy audit are valid;
•Perform his own post‐installation monitoring or energy accounting
to verify project savings.

WHAT ARE THE BARRIERS TO THE ESCO DEVELOPMENT?

A‐ General Barriers:
A‐1: related to financing Energy Performance Contract (EPC)
contracts:

•Financing of EPC is a major problem especially in developping countries
where th ESCO i d t i still young and unknown and th b ki
h the industry is till d k d the banking
sector is too conservative;

•Since numerous b k l k information about energy efficiency
banks lack f b ff
potentials and especially experience in lending to ESCOs they consider
EPC often as a risky business;

•Banks are especially reluctant to lend money to small and new ESCOs,
who cannot bring guarantees.
gg


A‐2: Strucural and political barriers:
•Low energy prices do not provide incentives to reduce energy use
by improving energy efficiency;
•In some countries, there is a lack of government support for
energy performance contracting;
•Safety and reliability concerns can hinder the introduction of more
energy efficient new technologies;
•EPC is not an easy business and requires deep know‐how of
energy, financing, buildings, and industry processes to become a
win win project.
win‐win project


A‐2: Strucural and political barriers:
•Decision makers are often unaware of the significant
opportunities for energy and cost savings since their priorities are
aimed at areas more popular with voters such as education health
education,
or unemployement.
•In some countries, public authorities are afraid of outsourcing
through EPC because they fear a loss of job and control systems.
•In many countries, specific provision on ESCOs and EPC are still
missing in the regulatory framework and certain traditional legal
provisions can create problems for ESCOs (especially concerning
public procurement)


B‐ Specific Barriers:
B‐1: In the public sector:
•In many countries, specific provision on ESCOs and EPC are still
missing in the regulatory framework and certain traditional legal
g g y g
provisions can create problems for ESCOs (especially concerning
public procurement);
• The energy savings are not in the priority of the public
f
companies;
•the public procurement rules have not yet included EPC as an item
to be sourced through a tender process.


B‐2: In the industrial sector:
•Numerous companies do not allow ESCOs to check the core
industrial processes because of fears about trade secrets
p
• In many companies, the qualified and available staff is
insufficient, the energy management infrastructure is limited and
the link between the technical staff and the strategic management
ff
level is missing.
•Many companies prefer to modernize their outdated
manufacturing processes rather than invest their small revenues in
energy efficiency.
gy y


B‐3: In the commercial sector:
Barriers or EPC in the commercial sector resemble those in the
residential sector :
•Building owners often lack awareness about the possibility of EPC
or knowledge on how to implement it.
or knowledge on how to implement it.
•Some of them are reluctant to engage in multi‐year contracts.

•ESCOs and banks often consider the tertiary sector to be an
unreliable client and the potential energy savings to be too small if
p gy g
the annual energy costs are below a certain amount.


B‐4: In the residential sector:
ESCOs are often not interested in this sector, for various reasons:

•Energy and cost saving possibilities of a single project are usually
small compared to the transaction costs.
•The absence of the guaranteed savings model in this sector.
•The EPC mechanism is not understood by many building owners
owners.
•Owners have a limited budget and would rather spend money on
improvements of the comfort
i t f th f t

MAIN RECOMMODATIONS FOR A SUCCESSFUL ESCO INDUSTRY
CO O O S O S CC SS SCO S

A‐ Legislative and financial conditions:
A Legislative and financial conditions:
•The success of ESCOs is mainly due to direct or indirect
g
governmental support as well as favourable legislation.
pp g
•Sufficient technical and financial capacity of ESCOs as well as
openness of the legal and financing system for EPC are important.
•Clear information on the tender and award procedure as well as
budgetary provisions are crucial for the success of EPC mainly in
the public sector
sector.
•Energy price levels and enforcement of contracts as well as long‐
term predictability of the legislation are major factors for EPC
p y g j
investment.


B‐ Creation of energy agencies:
B Creation of energy agencies:
•Energy agencies can disseminate information about EPC and
promote th ESCO i d t
t the industry.
•They can play an important role as mediators between ESCOs and
their customers.
•Energy agencies can support officials in the public sector whose
time and knowledge are often limited.


C‐ Development of accreditation systems:
C Development of accreditation systems:
•Since mistrust is a major barrier, information about ESCOs needs
to be
t b complemented b measures t confirm and i
l t d by to fi d increase th i
their
reliability for the potential clients.
•An accreditation system is an important measure to increase trust
and reliability.
•However, an accreditation system may also have disadvantages
since the process of receiving accreditation is usually so expensive
that
th t small ESCO might not b able t afford it
ll ESCOs i ht t be bl to ff d it.


D‐ International cooperation:
D International cooperation:
•International contacts through conferences or networks can help
to increase th i t
t i the interest i EPC raise th competence of new ESCO
t in EPC, i the t f ESCOs
and their (potential or actual) clients as well as foster valuable
exchange of experience
experience.
•Contacts and networks are especially important since the EPC
concept is often disseminated through these channels
channels.
•Experience on ESCO, technical assistance and tools can be shared
through networks
th h t k

BEST PRACTICES OF ESCOs
S C C S O SCO

A‐ India:
A‐1: General characteristics
•The energy efficiency program started in India a long time ago in
The
1964, a more interest in energy efficiency and conservation
matters after the enactment of the Energy Conservation Act 2001.
•Market potential for energy saving is estimated to be around 53
billion KWh and corresponding peak saving of 8935 MW.
•The energy audit market in the country is matured with twenty‐
seven firms having more than a decade of experience and some
having more than two decades of operational experience
experience.
•ESCOs are a new concept in India which started to appear in 1994‐
1995

S C C S O SCO

A‐ India:
A‐2: Description of the ESCO industry:
• 20 ESCOs are reported to be operating in the country and only
around 12 may be seriously doing ESCO business.
•Except a few, the ESCOs in the country are small or medium scale
private players with consultant strength of fi or l
i t l ith lt t t th f five less.
• ESCOs can be classified in two types: equipment related and
service‐related ESCOs.
•The equipment linked ESCOs generally manufacture/provide one
set of products, like lighting, whereas service providers cater to
different sectors
sectors.
•The ESCOs have undertaken projects with capital costs ranging
from 3000 USD to 2 million USD.

S C C S O SCO

A‐
A India:
• Th ESCO projects i I di are generally carried out under th
The j t in India ll i d t d the
guaranteed savings scheme but in a few cases the shared savings
scheme is also used
used.
•The Indian Renewable Energy Development Agency (IREDA), is a
prominent organization in India in Energy Efficiency financing.
prominent organization in India in Energy Efficiency financing
•The World Bank has extended a Line of Credit to IREDA for
developing and fi
d l i d financing energy efficiency and conservation
i ffi i d ti
projects that includes project implemented in ESCO model.

S C C S O SCO

A‐
A India:
• Th commercial b k i th country are generally apprehensive
The i l banks in the t ll h i
of financing EE projects. However, recently, five prominent banks in
India have launched EE schemes for Small and Medium Entreprises
(SMEs).
•The schemes are addressed towards their existing SME clients and
for small projects up to USD 22,000.

S C C S O SCO

A‐ India:
A‐3: Impact/evaluation enabling factors:
• General energy market context: In order to sustain the present
gy p
economic growth, it is desired to have a capacity increase of 100,000
MW by the year 2012. It is difficult to meet the demand by addition
capacity alone. Energy efficiency and conservation is considered as one
of the cost effective solutions to bridge the gap.
•Legislation: there have been a few policy initiatives from the
government in the energy sector, such as the enactment of the Energy
Conservation Act 2001 which also aims to strengthen the delivery
mechanism of energy efficiency services. Furthermore, the National
gy y ,
electricity policy (2005) suggests that energy conservation will be
adopted in all government buildings for which the energy saving
potential is estimated to be 30%.

S C C S O SCO

A‐
A India:
•D
Demonstration projects: energy audits were conducted, with th
t ti j t dit d t d ith the
support of government and international funding agencies, in
government buildings The suggestions made in the energy audit
buildings.
were implemented through performance contract mode by ESCOs.
•Financial support: The Indian commercial banks have introduced
energy efficiency schemes in their portfolio targeting SMEs. Some
of them have some incentive schemes in place as well, like partially
p , p y
covering the cost of energy audit and detailed project preparation.

S C C S O SCO

A‐
A India:
•I t
International programs: Th
ti l There h have b been some ongoing i
international aided projects to strengthen the ESCOs in the country
(the World Bank , UNEP USAID )
UNEP, USAID,…).

S C C S O SCO

B‐
B USA:
A‐1: General characteristics
•The U it d St t i d
Th United States is described as th oldest and most mature
ib d the ld t d t t
ESCO market in the world. The first energy service companies
(ESCOs) in the USA emerged in the 1970s
1970s.
•In the 1980s, especially from 1988 to 1994, generated electricity
shortages led to the introduction of bidding programs: the utilities
offered monetary incentives to clients who reduced their energy
use and peak load. They help their clients by creating ESCOs as
p y p y g
subsidaries.

S C C S O SCO

B‐
B USA:
B‐2: Description of the ESCO industry:
M th 60 ESCO ff f t ti
•More than 60 ESCOs offer performance contracting.
•They are active in the fields of lighting efficiency and comfort
conditionning. Ther are often interested in comprehensive services
such as project management, energy audits and engineering
design.
design

•The public sector is the major target sector of the US ESCO
p j g
industry.

S C C S O SCO

B‐
B USA:
•The i d t ’ revenues h
Th industry’s have grown f from 450 million US$ per year
illi
in 1995 to approximately 2 billion US$ in 2000 with a yearly growth
rate of almost 24%
24%.
•US ESCOs are concentrated in certain geographical areas: ESCOs in
4 states account for 44% of all investment costs.
•For more than 20 years, the most important ESCO association in
US (NAESCO) has been the major representative organisation,
providing t h i l and i f
idi technical d informational support t it members as
ti l t to its b
well as an accreditation programme.

S C C S O SCO

B‐
B USA:

•The accreditation committee looks at criteria including the
following: the precise nature of the applicant‘s business; the range
g p pp ; g
of measures and services offered to customers; the availability of a
performance‐based project approach; ethical business practice
commitment; project engineering and design, financing, project
management, operations, and maintenance capabilities; and the
capability of verifying and monitoring energy cost savings.
bilit f if i d it i t i

S C C S O SCO

B‐
B USA:
B‐3: Impact/evaluation enabling factors:
• A combination of enabling f d l l i l ti and governmental
bi ti f bli federal legislation d t l
programmes including public benefit charges, customer education
and information facilitated the development of the ESCO‐market in
ESCO market
the USA;
•The public sector has played a very important role and is still the
major ESCO target area in the US;
•Due to supportive legislation, public institutions can enter into
multi‐year fi
lti financial commitments and make th i procurement
i l it t d k their t
decisions more flexible favouring "best value" proposals rather
than lowest‐cost bids ;
lowest cost

S C C S O SCO

B‐
B USA:
B‐3: Impact/evaluation enabling factors:
• Th f d l E
The federal Energy P li A t of 1992 prescribed th t f d l
Policy Act f ib d that federal
agencies take certain steps to manage their energy use allowing
them to regulate the use of Energy Savings Performance Contracts
(ESPC).
•Executive Orders (EO) obliged Federal Agencies to reduce energy
consumption of buildings cost‐effectively by 30% until 2005 and
35% by 2010 as compared to their consumption in 1985. They are
y p p y
assisted by the Federal Energy Management Program (FEMP).

S C C S O SCO

C‐ Germany:
C‐1: General characteristics
•Germany is often characterized together with Austria as the most
Germany
developped ESCO market in the EU;
•At the beginning of the 90s, the first ESCOs emerged in Germany,
but the
b t th market was still rather i i ifi t and only th h t
k t till th insignificant d l the heat
supply contracting market was growing;
•In 1995, the municipality of Berlin decide to bundle about 100
, p y
municipal buildings together and contract several ESCOs to
improve their energy efficiency: It was the first major project ;
•The liberalization and restructuring of the electricity industry
stimulated the ESCO market development and many utility
companies turned into energy service companies.

S C C S O SCO

C‐
C Germany:
C‐2: Description of the ESCO industry:
•About 500 ESCOs existed in Germany However 80% of this is Energy
Germany. However,
Supply Contracting and only 15% Energy Performance Contracting (5%:
other forms of contracting such as operation management contracting);
•The sectors targeted by ESCOs in Germany have been as follows:
(municipal sector: 30 %; Industrial sector: 35 %; Commercial sector: 25%;
Residential sector: 10%);
•The annual turnover from energy services in Germany in 2005 was
approximately 2 billion Euros;
•In 2004, energy contracting in the industrial sector had an annual
turnover of 192 million euros accounting for one fifth of the whole
market.
k

S C C S O SCO

C‐ Germany:
C‐2: Description of the ESCO industry:
•Because of the high investment volume and the favourable banking
g g
system, third party financing is widely used in Germany;
•Most German EPC contracts use the model of shared savings which also
includes a savings guarantee:the ESCO and its client agree beforehand on
a share of energy cost savings for each (for example 70% for ESCO and
the rest for client) as well as a share if saving projections are exceeded
(often 50% for both);
•The major cross‐regional ESCOs in Germany have formed an ESCO
Association (PECU) with only about 16 member companies;
• PECU provides information and is engaged in political lobbying in order
to improve the conditions for EPC in Germany. Furthermore, there is
another ESCO association comprising 230 ESCOs in Germany which
coverd about 23000 projects i 2005
d b t j t in 2005.

S C C S O SCO

C‐
C Germany
C‐3: Impact/evaluation enabling factors:
• Th relative success of th ESCO i d t i G
The l ti f the industry in Germany i d t
is due to
several factors, but owes primarily to political decisions;
•Because of the increased competition the liberalization of
Because competition,
electricity provided opportunity as well as necessity to utility
companies to expand their business field beyond the traditional
electricity sales to energy services;
•The increase of energy taxes (approximately 35% of the total
industrial l t i it
i d t i l electricity price) combined with th rising oil price, i an
i ) bi d ith the i i il i is
important incentive for companies to care about their energy
efficiency and thus to engage in energy performance contracting
contracting.

S C C S O SCO

C‐ Germany
•Some ESCOs even consider the energy taxes, which were introduced in
gy
Germany in 1999 and gradually increased, as the most important political
support measure;
•Creating a demand for energy performance contracting from the public
Creating
sector through the Energy Saving Partnership in Berlin was a very positive
and visible starting signal for the ESCO industry;
•The Berlin bestpractice example was further disseminated mainly to the
The
commercial and municipal sectors;
•The energy agencies at national, regional and local levels carry‐out
energy efficiency checks help contract negotiations or provide model
checks,
contracts. Most of them are organized as limited company as public‐
private partnership (PPP).

S C C S O SCO

C‐ Germany
• A vital step for the evolution of the ESCO industry driven by the
energy agencies was the establishment of standard procedures and
documents such as a model contract, an energy performance
retrofitting model and a standard procurement procedure as well
t fitti d l d t d d t d ll
as contracting guidelines in the federal states of Hessen and Berlin
followed by others;
y ;
•The financial and technical support for energy efficiency projects
is provided by governmental action (research and development
programs,
programs loan/funding schemes and incentive programs for
schemes,
renewable energies) and nongovernmental programs such as
credit programs by eco‐banks;

S C C S O SCO

D‐
D Tunisia:
D‐1: General characteristics
•The energy efficiency program started i T i i a l
Th ffi i t t d in Tunisia long ti
time ago iin
1985, by the creation of the National Agency for Energy Efficiency
« ANME »;
•The energy audit market in the country is matured with more than
fifty firms having more than a decade of experience;
•ESCOs are a new concept in Tunisia which started to appear in
2005;
2005
•Act 2005 defining the mission, operational requirements and
obligations of ESCOs
ESCOs.

S C C S O SCO

D‐
D Tunisia:
D‐2: Description of the ESCO industry:
• 10 ESCO are operating i th country and only 03 are active i
ESCOs ti in the t d l ti in
doing ESCO business.
•Except one the ESCOs in the country are small or medium scale
Except one,
private players;
• They are service‐related ESCOs;
•Activities’s ESCO was limited to the industrial sector;
•The ESCOs have undertaken 17 projects with capital costs
reaching 7 million USD
hi illi USD.

S C C S O SCO

D‐
D Tunisia:
• Th ESCO projects i T i i are carried out under th guaranteed
The j t in Tunisia i d t d the t d
savings scheme;
•The GEF, by the World Bank, has implemented a specific program
which aims to strengthen and develop the ESCO’s activities in
Tunisia through:
•An additional subsidies for the projects contracted with ESCOs;
•Guarantee fund to cover 75% of the loan granted to g
customer/ESCO;
•Awarness, capacity building and dissemination of the best
practices.

S C C S O SCO

D‐
D Tunisia:
• Th commercial b k i th country are generally apprehensive
The i l banks in the t ll h i
of financing EE projects;
•Generally, ESCOs have difficulties to obtain credit from banks;

A study will be launched this year to evaluate the tunisian
experience and propose solutions to overcome the difficulties
encountered by ESCOs.
y

PLAN SOLAIRE TUNISIEN

Néji Amaimia
neji.amaimia@gnet.tn

Day 5: ESCOs Rules and Roles

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Day 5: ESCOs Rules and Roles

Similar to Day 5: ESCOs Rules and Roles (20)

More from RCREEE

More from RCREEE (20)

Day 5: ESCOs Rules and Roles