International ESCO Symposium 2025 – National Regulation and Frameworks in Support of ESCO

Moderated by Denis Tanguay (Efficiency Valuation Organisation), this panel explored how national regulatory frameworks can support the growth of ESCO markets. Panellists from the Philippines, the United States, Türkiye, and India shared their experiences, highlighting both progress and persistent challenges in enabling energy performance contracting (EPC) and scaling energy efficiency investments.

Key Insights by Country

Alexander Ablaza – Philippine Energy Efficiency Alliance (PE2), Philippines

• The Energy Efficiency and Conservation Act (2019) was a turning point after nearly 30 years of voluntary market conditions.
• The law introduced:
  • Mandatory obligations for large energy users.
  • Certification for ESCO professionals.
  • Tax incentives and 100% foreign ownership for ESCOs.
  • Innovative procurement models for public sector engagement.
• The ESCO market is growing, with a notable rise in cooling-as-a-service models.

David Daniel – Willdan Energy Solutions, United States

• The ESCO market is evolving amid political uncertainty, tariff risks, and supply chain disruptions.
• Federal support is declining, while state and local governments and utilities are becoming key players.
• Challenges include:
  • Trust and transparency in ESCO performance.
  • Decarbonization mandates conflicting with short payback requirements.
  • Grid strain from EVs and data centers.
• Utilities are increasingly offering on-bill financing and other innovative funding models.

Esra Tombak – Ministry of Environment, Urbanization and Climate Change, Türkiye

• Türkiye aims for net-zero emissions by 2053.
• ESCO contracts were introduced in 2007 and supported by legislation in 2020–2022.
• A World Bank-funded pilot in a public school achieved 70% energy savings, but broader adoption is hindered by:
  • Economic uncertainty and inflation.
  • Limited financial strength of local ESCOs.
  • Lack of integrated project delivery and sector familiarity.
• Despite challenges, Türkiye has renovated nearly 400 public buildings, achieving an average of 40% energy savings.

Jayanta Chaudhuri – Alliance for an Energy Efficient Economy (AEEE), India

• The Energy Conservation Act (2001) and its 2022 amendment laid the foundation for ESCO development.
• Key enablers include:
  • Bureau of Energy Efficiency (BEE) accreditation and M&V protocols.
  • Perform, Achieve, and Trade (PAT) scheme and emerging carbon markets.
  • Super ESCO (EESL) and state-level energy conservation funds.
• Challenges include:
  • Voluntary building codes, low credit ratings, and small ESCO scale.
  • Solar deployment undermining energy efficiency incentives.
  • Procurement policies favouring lowest-cost bids over lifecycle value.

Conclusion

The panel emphasised that while national regulations are critical to enabling ESCO markets, they must be supported by:

• Clear procurement frameworks,
• Financial de-risking mechanisms,
• Capacity building, and
• Cross-sector collaboration.

Each country’s experience shows that policy alone is not enough—implementation, market trust, and financial innovation are equally essential. The session closed with a call for continued collaboration and knowledge-sharing to overcome persistent barriers and scale energy efficiency globally.