Energy Service Companies (ESCOs) is a company that offers energy services, usually design, retrofitting and implementation of energy efficiency projects after identifying energy saving opportunities through energy audit of existing facilities. It also includes energy infrastructure outsourcing, power generation and energy supply, financing or assist Facility’s Owners in arranging finances for energy efficiency projects. ESCOs operates by providing a savings guarantee, risk management in the implementation of the energy efficiency projects and also perform measurement & verification(M&V) activities to quantify actual energy savings post implementation of energy efficiency projects etc.
BEE does empanelment of ESCOs through a process of grading carried out by SEBI Accredited rating agencies CRISIL/CARE/ICRA indicating capability in implementation of energy efficiency projects through performance contracting based on availability of technical manpower, financial strength, market position etc. Currently, 150 ESCOs are empaneled by BEE. The energy efficiency market in India is estimated to be worth INR 150,000 Crore, out of which only 5% potential has been tapped by ESCOs so far. Accordingly, a significant Energy Efficiency potential is left untapped in India and ESCOs are supposed to be the main vehicle to harness this potential.
For capacity building of ESCOs, BEE in partnership with State Designated Agencies and with the technical support from IFC, has proposed to conduct 5 training workshops for capacity building of ESCOs ( also includes Accredited and certified Energy auditors/ Energy professionals/ energy managers) on energy efficiency financing. Till date, 4 regional training workshops has been organized for capacity building of ESCOs in Delhi, Mumbai, Bangalore and Bhubaneswar and fifth training workshop is proposed to be organize Chennai in November, 2019. Approximately, 310 energy professionals have undergone training on Energy Efficiency financing, emerging areas of Energy Efficiency technologies, Measurement & Verification protocols, Baseline estimation techniques, Risk Mitigation in implementing Energy Efficiency Projects etc. through these training workshops. For more information, download the information from below: