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.


Thailand




Insights

Overall, an ESCO in Thailand meets the global definitions of an ESCO: a company that provides a form of energy performance contracting. However, contractors and technology suppliers offering energy services without an EPC that are members of the Thai ESCO Association are granted the status of ESCO after four years of association. This change is possible (non-EPC offering entities) because there is an increase in confidence in the technical capability of the company.

Between 2009-2017 the ESCO industry in Thailand achieved 124.34 ktoe energy savings. Currently 100% of ESCOs operating in Thailand are stand-alone companies. Most corporations closed their subsidiary ESCO businesses, but this is likely to change in 2018 due to new legislation allowing ESCOs to accept government contracts associated with larger projects.

Few renewables are used in ESCO projects because only three to four ESCOs can provide solar PV systems due to the requirement that an ESCO provide an EPC. However, there are non-ESCO turnkey energy efficiency solution providers (more than 50 companies) and non-ESCO turnkey rooftop solar PV solution providers (more than 30 companies) in Thailand.

The duration of most contracts is greater than four years.

Solar power projects typically utilise a longer contract of around 15 years.

Thai ESCO Data