Energy Service Companies

At the heart of innovative financing models for efficiency

Energy service companies (ESCOs) deliver energy efficiency projects that are financed based on energy savings. Given the need to rapidly and significantly increase financing for energy efficiency, interest in ESCO business models is growing.


Brazil


The following information is primarily derived from the Carbon Trust's 2017 report Transformative Investments for Energy Efficiency and Renewable Energy (TI4E). The ESCO data was collected from a survey conducted by ABESCO - Brazil's ESCO association. 


	Share of activity
All sectors	35
Utilities	17.5
Commercial 	10
Industry	37.5
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	Share of activity
Public	43
Private	57
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	Share of activity
Do not use Energy Performance Contracts	62.5
Energy Performance Contracts	37.5
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Insights

In Brazil to be classified as an ESCO the service company is not required to provide savings guarantee or EPC. A variety of companies are included as ESCOs in Brazil, including companies conducting energy savings assessments and technology providers.

Average duration of contracts in Brazil are typically only a year or two.

Longer payback periods are less appealing in the public sector due to yearly spending requirement. The preferred investments, with acceptable payback periods are lighting, appliances, and HVAC.

Survey Data

(Source: ANEEL Presentation 2018)

	Share of activity
          Privately funded	127
          Programa de Eficiência Energética Loan	170
        
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