The African Development Bank’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.
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.
Amid growing demand, Morocco aims to meet its energy needs by combining large-scale energy efficiency strategies and renewable energy investments.
Ahmed Baroudi, SIE’s Chief Executive Officer, commented: “This support from the African Development Bank will enable the operationalisation of the new SIE as a Super ESCO, thus creating a model well aligned with the needs of the country’s energy efficiency sector.”
Super Energy Service Company expansion
As a Super Energy Service Company, the SIE should be able to overcome many of the challenges in scaling up energy efficiency (EE) investments.
It will also open market opportunities for local ESCOs, offer quality assurance support and build their reputation among end-users and investors.
The grant will provide SIE with operational tools to develop a pipeline of bankable energy efficiency investment projects, said Brice Mikponhoue, Officer in Charge at the North Africa Regional Development and Business Delivery Office of the African Development Bank.
Jalel Chabchoub, Chief Investment Officer and Energy Efficiency Specialist in the Department of Renewable Energy and Energy Efficiency at the African Development Bank said: “The implementation of Super ESCOs on the continent will gradually contribute to the expansion and strengthening of the energy efficiency financing ecosystem.”
He added: “The African Development Bank is proud to support the first Super ESCO in Africa and looks forward to supporting further projects in the future.”