Dear Waqar

The ESCO business model is to carry out energy optimization of production facilities or buildings financed by the savings generated by the optimization process. Except in the case of self-consumption, I consider that this business model can not be conventional because its viability is conditional on the existence of a regulatory framework that guarantees that investments can be reimbursed for the sale of energy to the network. Otherwise, it is difficult for an undifferentiated product sold by a small producer to have commercial viability due to the dominance that large energy companies have of their sources of supply.

With regards.

I'm not aware of a proven business model. There is a company in Alaska, 60hertz that is constructing and testing an approach targeting the high number of microgrids in Alaska, but I believe its been challenging because of regulatory issues as noted by P. Villar.

Dear Pedro ,

Thanks for the enlightening note .I agree with you that conventional business model can not be used for ESCO , but is it possible that some modification in the current models might help as my only concern is the respective funding for the project as you will also agree that funding for ESCO's are a big challenge the only reason that the reason is the unfamiliarity of ESCO model in the banking sector.