MOROCCO – Morocco’s Société d’Ingénierie Energétique (SIE) has secured US$965,000 grant from The African Development Bank’s Sustainable Energy Fund for Africa (SEFA) to support its transition into the first Super Energy Service Company (ESCO) initiative in Africa.
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.
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.
“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 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.
“The implementation of Super ESCOs on the continent will gradually contribute to the expansion and strengthening of the energy efficiency financing ecosystem,” 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 African Development Bank is proud to support the first Super ESCO in Africa and looks forward to supporting further projects in the future.”
Amid growing demand, Morocco aims to meet its energy needs by combining large-scale energy efficiency strategies and renewable energy investments.
Super ESCO operates in several sectors essential for the development of energy efficiency in Morocco. It gives priority to strategic sectors, most of which are energy-intensive, and which are part of the State’s logic of exemplarity in terms of energy efficiency.
By operating in public buildings, public lighting, industry and transport, the SIE contributes to reducing public expenditure and achieving national strategic objectives.
SIE also works with SMEs and ESCOs by supporting them in the implementation of their projects, which allows it to fully play its role of incubator of new skills to promote the energy efficiency market in Morocco.
SEFA is an African Development Bank-managed special fund, providing finance for renewable energy.
SEFA’s overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the Bank’s New Deal on Energy for Africa and the UN Sustainable Development Goal 7.
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