In the African context, the implementation of the Super ESCO will require a holistic approach which needs to translate the benefits of energy efficiency to the market value, through institutional setting, business models, and policy design. The African Development Bank (AfDB) is encouraging and supporting the African countries to create and implement Super ESCOs. Typically, African governments can consider two institutional options to tap the public sector’s energy efficiency potential through Super ESCO. The first option is to leverage existing government agencies with energy efficiency mandate to set up a Super ESCO. The other option is to leverage power utilities to create a utility based Super ESCO.
For this, the AfDB will assist targeted countries to review major overseas jurisdictions’ experiences, and investigate into what new financial products, vehicles or policy instruments can be introduced to enable broader access to energy efficiency finance through Super ESCOs.