Energy service practices towards ESCO concept in Sri Lanka: a literature review and preliminary investigation

Abstract

Energy conservation in built environment has been taken reasonable attention in global energy dilemma. However, uncertainty of expected performance achievement of energy conservation project is become an increasing threat. ―Energy Service Company‖ (ESCO) stands as a one such solution which provides successful energy project. Hence, this study investigates the existing energy service practices in Sri Lanka and possibility of adopting ESCO concept for energy conservation in Sri Lanka. This paper is based on literature review and preliminary investigation followed by nine (9) experts in energy industry which was used to discover the characteristics of existing practices of energy service in Sri Lanka, and way forward actions from current energy service practices towards ESCO Concept in Sri Lanka. Findings prove that, current practice of energy services can be categorized as Energy Audit Service, Energy Efficient Improvement Service, Technology service and Energy Supply Service Practitioners. Further, findings conclude that none of existing energy service model reached to the level of ESCO concept to attain the real benefit from energy conservation project and practicing of ESCO concept may be more favourable to the energy service industry in Sri Lanka. Therefore, this research highlights the way forward actions such as guaranteed saving model, energy performance contract and financing model for the development from current status, to the level of ESCO concept.