- There are 20 ESCOs in total including large corporations such as Siemens or Cogen and small to medium size enterprises such as lighting & tech providers.
- There are five to ten pure energy efficiency improvement companies.
- There are two to three lighting providers.
Energy prices are a key influencing factor to the success of ESCOs. The higher the price of electricity the more projects ESCOs typically complete.Average duration of ESCO projects in Mexico
- 1-2 years: 5%
- 2-4 years: 10%
- 4+ years: 85%
Within Industry the typical project length is four to five years and increasing as the ESCOs develop and are able to undertake larger projects.
Examples of larger projects regularly occur within the Municipal and Co-generation segment. Project length for Municipal and Co-generation segment is an average of 10.5 years.
Primarily projects are financed via debt borrowed by the client and ESCOs. The typical project size ranges from USD 100,000 to USD 5 million. This range causes financing difficulty. Projects are too large for micro-financing yet too small to cover typical transaction costs. Small projects, less than 1 million USD, usually use pay for services agreements and account for less than 10% of all projects completed in Mexico.