Dr. David Crossley, RAP senior advisor, highlights the opportunities and challenges for China’s grid companies to use the energy service company (ESCO) model to achieve the country’s energy efficiency obligation. In an interview with the State Grid Power News (in Mandarin), he reviews the historical evolution of grid company demand-side management in the US, and shares insights on cost recovery and incentive mechanisms for grid companies to carry out energy efficiency projects. Dr. Crossley suggests that grid companies provide their affiliated ESCOs with abundant financial and human resources to help the ESCOs compete in the energy saving market. RAP’s ESCOs as a Delivery Mechanism for Grid Company DSM in China (中国电网企业开展电力需求侧管理工作中节能服务公司的运作机制), provides additional recommendations to assist the grid companies shift their business models from supplying electricity to providing comprehensive energy services to their customers, thereby reducing costs and increasing economic efficiency.