Morocco’s Société d’Ingénierie Energétique (SIE), has received a grant totalling $965,000 from the African Development Bank’s Sustainable Energy Fund for Africa (SEFA).
The grant, SEFA notes, is to support SIE’s transition into the first Super Energy Service Company (ESCO) 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.
AfDB’s support for SIE’s transition into a Super Energy Service Company (ESCO) comes on the back of Morocco’s growing energy demand and the need for the country to meet its energy needs by combining large-scale energy efficiency strategies and renewable energy investments.
“This support from the African Development Bank will enable the operationalization of the new SIE as a Super ESCO, thus creating a model well aligned with the needs of the country’s energy efficiency sector,” said Ahmed Baroudi, SIE’s Chief Executive Officer.
“The implementation of Super ESCOs on the continent will gradually contribute to the expansion and strengthening of the energy efficiency financing ecosystem. The African Development Bank is proud to support the first Super ESCO in Africa and looks forward to supporting further projects in the future,” said Jalel Chabchoub, Chief Investment Officer and Energy Efficiency Specialist in the Department of Renewable Energy and Energy Efficiency at the African Development Bank.
The grant is expected to provide SIE with operational tools to develop a pipeline of bankable energy efficiency investment projects.
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.
