The African Development Bank’s Sustainable Energy Fund for Africa (SEFA) has approved a technical assistance grant of $5.03 million to implement the Africa Super Energy Service Companies (ESCO) acceleration program in Rwanda, Senegal, and South Africa.
SEFA is a multi-donor special fund managed by a bank that works to mobilize private sector investments in renewable energy and energy efficiency.
Super ESCOs are vehicles that channel funds into public sector energy efficiency investments such as hospitals, schools, and street lighting, allowing private investment to flow in. By operationalizing Super ESCOs, the acceleration program catalyzes private sector investments in energy efficiency, thereby stimulating the transition to more sustainable and greener economies.
The grant will fund the training of a team to operate Super ESCOs as well as the development of Energy Performance Contract services by private ESCOs in the three countries. Private ESCOs assist energy users in designing and implementing energy efficiency measures. The funding will also support the creation of regionally standardized certification schemes for ESCOs and energy service professionals, such as energy auditors, managers, and energy savings measurement and verification specialists.
“This innovative program will enable Senegal to establish its Super ESCO and boost the energy efficiency market for increased energy performance in the public and private sectors,” said Mr. Saer Diop, Director-General of Senegal’s AEME, which promotes energy efficiency.
“Super ESCOs are an efficient tool that governments can draw on to leverage private sector resources to improve the energy efficiency of public facilities and other key energy-consuming sectors,” said Mohamed Chérif, African Development Bank Senegal Country Manager. I am delighted that Senegal will be among the first to benefit from the Africa Super Energy Service Companies Acceleration Program.”
The acceleration program is laying the groundwork for the successful implementation of downstream energy efficiency investment programs in which the African Development Bank, the Sustainable Energy Fund for Africa, and other stakeholders will make investments.