Wire-Charge for ESCOs
Policy measure

A significant part of the funds collected through the electric utilities income (the Wire-Charge) in Brazil are allocated to support the ESCO industry in the country (Taylor et al., 2008). This is an important programme for electrical conservation and is associated with the PEE (Programme for Energy Efficiency). This programme channels a share of its revenues to energy efficiency measures, providing them with a significant budget (ECLAC, 2010).ures, providing them with a significant budget (ECLAC, 2010).

Implementation

An example of ESCO activity related to the Wire-Charge is from 2002, when 117 contracts were signed with ESCO’s amounting to around 20 percent of investments stemming from this programme (Taylor et al., 2008). 

Challenges
No identified challenges.
Outcomes

According to Taylor et al. (2008), 57 of these contracts were endorsed for the industrial sector. The net investments amounted to RS 14.42 million and achieved an average energy saving of 19.5 percent, resulting in simple payback periods of 3 years.  The wire charge has, on the one hand, been an important source of revenue and projects for ESCOs, but has done little, on the other hand, to prepare them for a more sustainable future based on commercial financing.

References

ECLAC (UN Economic Commission for Latin America and the Caribbean), 2010. Energy efficiency in Latin America and the Caribbean: situation and outlook. Chile: United Nations.


Taylor, R.P. Govindarajalu, C. Levin, J. Meyer, A.S and Ward, W.A. (2008). Financing energy efficiency: Lessons from Brazil, China, India, and beyond. Washington DC: The World Bank.