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.




JAESCO covers the majority of the ESCO market through its membership. As of April 2017, there are 34 regular members and 46 supporting members. Supporting members are technology providers and service operators. 14 JAESCO members offer energy performance contracting as a part of their service menu. They operated 82 performance contract projects in 2016 fiscal year.

Average duration of ESCO projects Survey Data
	Share of activity
          Client Own Funds	13
          Client Debt	1
          Financial Lease	36
          ESCO Own Fund 	4
          ESCO Financial Lease	39
          Subsidy	7
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There is still significant potential for growth in the ESCO market. After 20 years of promotion of ESCOs by the Government, “raising awareness” and "Exclusive Incentives for ESCOs” are the key initiatives for the government to undertake in order to achieve remaining potential.