The African Development Bank’s (AfDB’s) Sustainable Energy Fund for Africa (Sefa) is providing a $965 000 grant to Morocco’s Société d’Ingénierie Energétique (SIE), to support its transition into the first “super energy service company (Esco)” initiative in Africa.
Sefa is an AfDB-managed special fund, providing finance for renewable energy projects.
AfDB North Africa regional development business delivery office officer Brice Mikponhoue says the grant will provide SIE with operational tools to develop a pipeline of bankable energy efficiency investment projects.
SIE CEO Ahmed Baroudi says the support from the AfDB will enable the operationalisation of the new SIE as a “super Esco", thus creating a model that is well aligned with the needs of the country’s energy efficiency sector.
Amid growing demand, Morocco aims to meet its energy needs by combining large-scale energy efficiency strategies and renewable energy investments.
Super Escos are vehicles for channelling funds into public sector energy efficiency investments such as hospitals, schools and street lighting, laying the foundation for private investment later in the commercial and industrial sectors.
As a super Esco, the SIE should be able to overcome many of the challenges in scaling up energy efficiency investments. It will also open market opportunities for local Escos, offer quality assurance support and build their reputation among end-users and investors.
AfDB department of renewable energy and energy efficiency specialist and CIO Jalel Chabchoub says the implementation of super Escos in Africa will gradually contribute to the expansion and strengthening of the energy efficiency financing ecosystem.
“The AfDB is proud to support the first super Esco in Africa and looks forward to supporting further projects in the future.”