Energy Service Companies in China
Chinese government support for energy service companies (ESCOs) and financial incentives for energy performance contracting have encouraged grid companies to establish ESCOs as their main mechanism for acquiring energy and demand savings. At a workshop on the role of ESCOs in China, David Crossley provided broad insight into various business models, their scope of operation, and the lessons learned from international experience with ESCOs. Currently, Chinese grid companies are using ESCOs to deliver end-use energy efficiency and achieve their targets under an energy efficiency obligation established by the Chinese government.