Unlocking Energy Performance Contracting in India: Encouraging Growth in ESCOs
As India pursues ambitious plans for sustainable development and equitable growth, energy efficiency is an important, low-cost resource. New and existing buildings provide opportunities to implement energy- and cost-saving measures, but the market for building efficiency remains relatively small.
Energy performance contracting (EPC) is a proven and internationally recognized method for reducing the operating costs and environmental impacts of buildings at low risk to property owners, and energy service companies (ESCOs) are the key providers of EPCs.
Yet despite government support for EPC, India’s ESCO industry remains immature.
An Institute for Building Efficiency issue paper explores the opportunity for increasing investment in building efficiency as a way to reach India’s sustainable development goals. It puts forth three recommendations for growing the country’s ESCO industry:
Establish a policy framework for EPC and a standard design-build procurement process.
Expand training and assistance to agencies and building owners on tools and approaches.
Stimulate third-party financing.
Learn More about EPC in India in the detailed Issue Brief, available at the top of the article.