{"id":380,"date":"2025-05-07T14:30:50","date_gmt":"2025-05-07T14:30:50","guid":{"rendered":"https:\/\/eyoder.org.tr\/eng\/?p=380"},"modified":"2025-09-11T15:28:04","modified_gmt":"2025-09-11T15:28:04","slug":"international-esco-symposium-2025-spotlight-on-the-esco-from-a-development-perspective","status":"publish","type":"post","link":"https:\/\/eyoder.org.tr\/eng\/esco\/international-esco-symposium-2025-spotlight-on-the-esco-from-a-development-perspective\/","title":{"rendered":"International ESCO Symposium 2025 \u2013 Spotlight on the ESCO from a Development Perspective"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_video src=&#8221;https:\/\/www.youtube.com\/watch?v=J7oK4Bp9MQw&#038;t=1s&#8221; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_video][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>Moderated by\u00a0<strong>Mark Lister<\/strong>\u00a0(Chair, Efficiency Valuation Organization and Co-CEO, Asia Clean Energy Partners \u2013 Australia), this session explored how ESCO models are being supported and scaled in developing countries and conflict-affected regions. The panel featured development institutions and financiers who shared their strategies for enabling ESCO markets through policy, finance, and technical assistance.<\/p>\n<p><strong>Key Insights by Speaker<\/strong><\/p>\n<p><strong>Anna Zhovtenko \u2013 Project Manager, Energy and Environment Portfolio, UNDP, Ukraine<\/strong><\/p>\n<ul>\n<li>UNDP has supported Ukraine\u2019s ESCO market since 2015, even amid war and energy infrastructure destruction.<\/li>\n<li>Achievements include the launch of\u00a0<strong>125 ESCO contracts<\/strong>\u00a0worth\u00a0<strong>$35 million<\/strong>, including\u00a0<strong>75 solar ESCO projects<\/strong>.<\/li>\n<li>Developed two\u00a0<strong>innovative financing mechanisms<\/strong>:<\/li>\n<ul>\n<li>Concessional loans with interest rates of 3\u20139%.<\/li>\n<li>Reduced collateral requirements and portfolio guarantees.<\/li>\n<\/ul>\n<li>ESCOs have played a critical role in ensuring\u00a0<strong>energy resilience<\/strong>\u00a0for hospitals and water facilities during wartime.<\/li>\n<li>UNDP encourages\u00a0<strong>international ESCOs<\/strong>\u00a0to enter the Ukrainian market now, not post-conflict.<\/li>\n<\/ul>\n<p><strong>S\u00f6ren David \u2013 Head of Technical Support Unit, Mitigation Action Facility (MAF), Germany<\/strong><\/p>\n<ul>\n<li>MAF provides\u00a0<strong>\u20ac5\u201325 million in grant funding<\/strong>\u00a0for ambitious mitigation projects in energy, industry, and transport.<\/li>\n<li>ESCO-related projects must demonstrate:<\/li>\n<ul>\n<li><strong>High ambition<\/strong>\u00a0(e.g., industrial heat, not just LED lighting).<\/li>\n<li><strong>Feasibility and scale<\/strong>, with total project sizes of \u20ac60\u2013100 million.<\/li>\n<li><strong>Institutional readiness<\/strong>\u00a0and\u00a0<strong>technical capacity<\/strong>.<\/li>\n<\/ul>\n<li>Successful examples include:<\/li>\n<ul>\n<li>Brazil: ESCOs supporting industrial heat for SMEs.<\/li>\n<li>Mauritius: Development of an ESCO guarantee facility.<\/li>\n<\/ul>\n<li>Emphasized the importance of\u00a0<strong>standardization and bundling<\/strong>\u00a0to overcome small-ticket financing barriers.<\/li>\n<\/ul>\n<p><strong>\u015eule K\u0131l\u0131\u00e7 \u2013 Deputy Head, European Bank for Reconstruction and Development (EBRD), T\u00fcrkiye<\/strong><\/p>\n<ul>\n<li>EBRD has invested over\u00a0<strong>\u20ac22 billion<\/strong>\u00a0in T\u00fcrkiye, with a strong focus on\u00a0<strong>green and climate-aligned projects<\/strong>.<\/li>\n<li>ESCO engagement began with:<\/li>\n<ul>\n<li>Support for T\u00fcrkiye\u2019s\u00a0<strong>National Energy Efficiency Action Plan<\/strong>.<\/li>\n<li>Development of\u00a0<strong>financing mechanisms<\/strong>\u00a0and\u00a0<strong>policy dialogue<\/strong>\u00a0with the Ministry of Energy.<\/li>\n<\/ul>\n<li>Key challenges:<\/li>\n<ul>\n<li><strong>Small project sizes<\/strong>,\u00a0<strong>lack of standardization<\/strong>, and\u00a0<strong>limited technical capacity<\/strong>.<\/li>\n<li><strong>Low awareness<\/strong>\u00a0of energy efficiency as an investment opportunity.<\/li>\n<\/ul>\n<li>EBRD supports ESCOs through:<\/li>\n<ul>\n<li><strong>Technical assistance<\/strong>,\u00a0<strong>indirect financing<\/strong>\u00a0via Turkish banks, and\u00a0<strong>green economic financing facilities<\/strong>.<\/li>\n<li>Emphasis on\u00a0<strong>capacity building<\/strong>,\u00a0<strong>measurement and verification (M&amp;V)<\/strong>, and\u00a0<strong>standardized products<\/strong>.<\/li>\n<\/ul>\n<\/ul>\n<p><strong>Common Themes and Takeaways<\/strong><\/p>\n<ul>\n<li><strong>Financing remains the biggest barrier<\/strong>, especially for small-scale projects in developing countries.<\/li>\n<li><strong>Standardization<\/strong>,\u00a0<strong>aggregation<\/strong>, and\u00a0<strong>guarantee mechanisms<\/strong>\u00a0are essential to unlock investment.<\/li>\n<li><strong>ESCOs are critical for energy security<\/strong>, especially in crisis contexts like Ukraine.<\/li>\n<li><strong>Awareness and capacity building<\/strong>\u00a0are key to scaling ESCO adoption.<\/li>\n<li>Development institutions are increasingly focused on\u00a0<strong>ambitious, scalable, and replicable<\/strong>\u00a0ESCO models.<\/li>\n<\/ul>\n<p><strong>Conclusion<\/strong><\/p>\n<p>The session highlighted the growing recognition of ESCOs as essential instruments for delivering energy efficiency and climate resilience in developing and conflict-affected regions. Through the experiences of Ukraine, T\u00fcrkiye, and global development institutions, it became clear that while the ESCO model holds significant promise, its success hinges on a combination of enabling policies, accessible financing, technical capacity, and market trust.<\/p>\n<p>Speakers emphasized that standardization, project aggregation, and innovative financing mechanisms\u2014such as concessional loans and guarantee facilities\u2014are critical to overcoming the barriers of small project sizes and limited investor confidence. The role of ESCOs in ensuring energy security, particularly in crisis contexts like Ukraine, was underscored as a powerful example of their broader societal value.<\/p>\n<p>Ultimately, the session called for greater collaboration, knowledge sharing, and institutional support to scale ESCO markets globally. Development partners, financiers, and governments must work together to create the conditions for ESCOs to thrive\u2014not only as service providers, but as strategic partners in achieving sustainable development and climate goals.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moderated by\u00a0Mark Lister\u00a0(Chair, Efficiency Valuation Organization and Co-CEO, Asia Clean Energy Partners \u2013 Australia), this session explored how ESCO models are being supported and scaled in developing countries and conflict-affected regions. The panel featured development institutions and financiers who shared their strategies for enabling ESCO markets through policy, finance, and technical assistance. Key Insights by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":357,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"[et_pb_section fb_built=\"1\" _builder_version=\"4.21.0\" _module_preset=\"default\" global_colors_info=\"{}\"][et_pb_row _builder_version=\"4.21.0\" _module_preset=\"default\" global_colors_info=\"{}\"][et_pb_column type=\"4_4\" _builder_version=\"4.21.0\" _module_preset=\"default\" global_colors_info=\"{}\"][et_pb_video src=\"https:\/\/www.youtube.com\/watch?v=qdEtgm3luFM\" _builder_version=\"4.21.0\" _module_preset=\"default\" hover_enabled=\"0\" global_colors_info=\"{}\" sticky_enabled=\"0\"][\/et_pb_video][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=\"4.21.0\" _module_preset=\"default\" global_colors_info=\"{}\"][et_pb_column type=\"4_4\" _builder_version=\"4.21.0\" _module_preset=\"default\" global_colors_info=\"{}\"][et_pb_text _builder_version=\"4.21.0\" _module_preset=\"default\" hover_enabled=\"0\" global_colors_info=\"{}\" sticky_enabled=\"0\"]<p>Moderated by\u00a0<strong>Denis Tanguay<\/strong>\u00a0(Efficiency Valuation Organisation), this panel explored how national regulatory frameworks can support the growth of ESCO markets. Panellists from the Philippines, the United States, T\u00fcrkiye, and India shared their experiences, highlighting both progress and persistent challenges in enabling energy performance contracting (EPC) and scaling energy efficiency investments.<\/p>\n<p><strong>Key Insights by Country<\/strong><\/p>\n<p><strong>Alexander Ablaza \u2013 Philippine Energy Efficiency Alliance (PE2), Philippines<\/strong><\/p>\n<ul>\n<li>The\u00a0<strong>Energy Efficiency and Conservation Act (2019)<\/strong>\u00a0was a turning point after nearly 30 years of voluntary market conditions.<\/li>\n<li>The law introduced:<\/li>\n<ul>\n<li><strong>Mandatory obligations<\/strong>\u00a0for large energy users.<\/li>\n<li><strong>Certification<\/strong>\u00a0for ESCO professionals.<\/li>\n<li><strong>Tax incentives<\/strong>\u00a0and\u00a0<strong>100% foreign ownership<\/strong>\u00a0for ESCOs.<\/li>\n<li><strong>Innovative procurement models<\/strong>\u00a0for public sector engagement.<\/li>\n<\/ul>\n<li>The ESCO market is growing, with a notable rise in\u00a0<strong>cooling-as-a-service<\/strong>\u00a0models.<\/li>\n<\/ul>\n<p><strong>David Daniel \u2013 Willdan Energy Solutions, United States<\/strong><\/p>\n<ul>\n<li>The ESCO market is evolving amid\u00a0<strong>political uncertainty<\/strong>,\u00a0<strong>tariff risks<\/strong>, and\u00a0<strong>supply chain disruptions<\/strong>.<\/li>\n<li>Federal support is declining, while\u00a0<strong>state and local governments<\/strong>\u00a0and\u00a0<strong>utilities<\/strong>\u00a0are becoming key players.<\/li>\n<li>Challenges include:<\/li>\n<ul>\n<li><strong>Trust and transparency<\/strong>\u00a0in ESCO performance.<\/li>\n<li><strong>Decarbonization mandates<\/strong>\u00a0conflicting with short payback requirements.<\/li>\n<li><strong>Grid strain<\/strong>\u00a0from EVs and data centers.<\/li>\n<\/ul>\n<li>Utilities are increasingly offering\u00a0<strong>on-bill financing<\/strong>\u00a0and other innovative funding models.<\/li>\n<\/ul>\n<p><strong>Esra Tombak \u2013 Ministry of Environment, Urbanization and Climate Change, T\u00fcrkiye<\/strong><\/p>\n<ul>\n<li>T\u00fcrkiye aims for\u00a0<strong>net-zero emissions by 2053<\/strong>.<\/li>\n<li>ESCO contracts were introduced in 2007 and supported by legislation in 2020\u20132022.<\/li>\n<li>A\u00a0<strong>World Bank-funded pilot<\/strong>\u00a0in a public school achieved\u00a0<strong>70% energy savings<\/strong>, but broader adoption is hindered by:<\/li>\n<ul>\n<li><strong>Economic uncertainty<\/strong>\u00a0and inflation.<\/li>\n<li><strong>Limited financial strength<\/strong>\u00a0of local ESCOs.<\/li>\n<li><strong>Lack of integrated project delivery<\/strong>\u00a0and sector familiarity.<\/li>\n<\/ul>\n<li>Despite challenges, T\u00fcrkiye has renovated nearly\u00a0<strong>400 public buildings<\/strong>, achieving an average of\u00a0<strong>40% energy savings<\/strong>.<\/li>\n<\/ul>\n<p><strong>Jayanta Chaudhuri \u2013 Alliance for an Energy Efficient Economy (AEEE), India<\/strong><\/p>\n<ul>\n<li>The\u00a0<strong>Energy Conservation Act (2001)<\/strong>\u00a0and its 2022 amendment laid the foundation for ESCO development.<\/li>\n<li>Key enablers include:<\/li>\n<ul>\n<li><strong>Bureau of Energy Efficiency (BEE)<\/strong>\u00a0accreditation and M&amp;V protocols.<\/li>\n<li><strong>Perform, Achieve, and Trade (PAT)<\/strong>\u00a0scheme and emerging\u00a0<strong>carbon markets<\/strong>.<\/li>\n<li><strong>Super ESCO (EESL)<\/strong>\u00a0and\u00a0<strong>state-level energy conservation funds<\/strong>.<\/li>\n<\/ul>\n<li>Challenges include:<\/li>\n<ul>\n<li><strong>Voluntary building codes<\/strong>,\u00a0<strong>low credit ratings<\/strong>, and\u00a0<strong>small ESCO scale<\/strong>.<\/li>\n<li><strong>Solar deployment<\/strong>\u00a0undermining energy efficiency incentives.<\/li>\n<li><strong>Procurement policies<\/strong>\u00a0favouring lowest-cost bids over lifecycle value.<\/li>\n<\/ul>\n<\/ul>\n<p><strong>Conclusion<\/strong><\/p>\n<p>The panel emphasised that while national regulations are critical to enabling ESCO markets, they must be supported by:<\/p>\n<ul>\n<li><strong>Clear procurement frameworks<\/strong>,<\/li>\n<li><strong>Financial de-risking mechanisms<\/strong>,<\/li>\n<li><strong>Capacity building<\/strong>, and<\/li>\n<li><strong>Cross-sector collaboration<\/strong>.<\/li>\n<\/ul>\n<p>Each country\u2019s experience shows that\u00a0<strong>policy alone is not enough<\/strong>\u2014implementation, market trust, and financial innovation are equally essential. The session closed with a call for continued collaboration and knowledge-sharing to overcome persistent barriers and scale energy efficiency globally.<\/p>\n<p>&nbsp;<\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]","_et_gb_content_width":"","footnotes":""},"categories":[7,6],"tags":[],"class_list":["post-380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-esco","category-front-page"],"_links":{"self":[{"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/posts\/380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/comments?post=380"}],"version-history":[{"count":5,"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/posts\/380\/revisions"}],"predecessor-version":[{"id":423,"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/posts\/380\/revisions\/423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/media\/357"}],"wp:attachment":[{"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/media?parent=380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/categories?post=380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eyoder.org.tr\/eng\/wp-json\/wp\/v2\/tags?post=380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}