Tap ESCO model for improving energy efficiency, Kerala's Energy Management Centre tells institutions, industries
The Energy Management Centre in Kerala is promoting the Energy Service Company (ESCO) model to help industries and institutions improve energy efficiency without upfront capital. The program targets large commercial entities and industrial sectors, allowing them to fund upgrades through verified energy cost savings.
Why it matters
This model provides a scalable financial framework for reducing industrial carbon footprints and addressing regional power shortages without requiring immediate government or private capital expenditure.
Even as a monsoon-season power crisis in Kerala has restated the importance of efficient energy use, the State government agency Energy Management Centre - Kerala (EMC) has invited institutions and industrial and commercial establishments to make use of the Energy Service Company (ESCO) model for implementing energy efficiency projects.
What makes the ESCO model attractive is that entities can implement energy efficiency improvement projects without upfront capital investment. The ESCO undertakes the investment and implementation of the selected energy efficiency measures, and the project cost is recovered from the verified energy cost savings that are generated.
“This approach enables facilities to modernise energy systems, reduce operating costs and lower emissions while minimising the financial burden of initial investment,” according to the EMC, which is also the State Designated Agency (SDA) for Bureau of Energy Efficiency (BEE) programmes in Kerala.
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