Under Construction

The Super ESCO mechanism is not only considered as the most suitable answer addressing barriers to scaling up EE project implementation but also as a catalyst in developing the EE Market in Africa. The table below shows a summary of the barriers and the Super ESCO solutions to address them.

 

Barrier How can a Super ESCO address the barrier
Lack of technical capacity for audits, project design, procurement, and supervision of EE projects Mobilizes the required technical skills and expertise to identify, design, procure and supervise EE projects
Lack of financing mechanisms for EE projects Arranges access to financing and risk sharing facilities.
Lack of market incentives for EE&RE solution providers Facilitates projects aggregation to make energy efficiency financing more attractive, procure large volumes of energy efficient devices and equipment, and consequently, bring about a rapid reduction in prices, making the energy efficiency measures more cost-efficient
Restrictive procurement, contracting and financial rules for the government sector Encourages the government to amend public procurement and budgeting rules to facilitate energy performance contracting in the public sector
High perceived risk

Offers energy performance-based contracts to its projects beneficiaries in the public and private sectors, with measurement and verification of energy savings as per approved methodologies

Lack of Market facilitators
  • Builds capacities of local experts and firms to offer EPC and converts a part or full activity as ESCO
  • Standardizes technical specifications and transaction templates and tools to reduce the perceived risk of working with ESCOs
Lack of governments exemplary to lead by example By essence, supports the public sector to enter an EPC scheme and guarantee specific energy savings, notably for the buildings or street lighting over a set period, thereby supporting the public sector have a catalytic effect on local markets by demonstrating good behaviour to the private sector and the general public