Promoting energy efficiency financing and ESCOs in developing countries: experiences from Korean ESCO business

Promotion of ESCO business is one way of increasing energy efficiency. However, it has a lot of barriers and challenges to be successful. The Korean case is a good example to show the reason why economically viable energy savings measures cannot be implemented and how this can be corrected. Although financing is essential for promoting energy efficiency investment and ESCO business, it is not the most crucial barrier to overcome. Along with a financial barrier, an institutional barrier should also be lifted for energy efficiency investment. In this regard, the role of government as a market creator as well as a rule setter through removing barriers and mobilizing necessary capital needs to be emphasized.