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Energy service companies (ESCOs) in developing countries

This paper examines the potential for energy service companies to accelerate uptake of energy efficiency in developing countries, focusing on barriers to their growth and measures to eliminate those barriers. Using an energy service company can greatly reduce the risk of energy efficiency projects for clients. Section 1 discusses what energy service companies are and how they operate, and reviews the potential and current status of such companies in developing countries. Section 2 examines programs currently in place to foster the growth of energy service companies. In Section 3, barriers to energy service company development are considered in detail, and Section 4 highlights some of the measures that might be put in place to overcome these barriers.

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