Investasi Efisiensi Energi dengan Kepastian
ESI is an insurance-backed guarantee on energy savings for energy efficiency retrofits.
ESI supports banks, insurers, and small and medium-sized enterprises by improving confidence and predictability in energy efficiency projects.
What is ESI?
ESI stands for Energy Savings Insurance.
ESI is a structured solution that reduces performance risk in SMEs' energy efficiency projects.
It supports Indonesian companies seeking to trade older equipment with high- performance solutions by improving confidence that expected energy savings will be achieved, while providing reassurance to financial partners involved in the project.
By applying ESI to an energy efficiency project, savings resulting from the lower consumption are guaranteed by the provider and backed by an insurance. This helps SMEs to safely adopt modern energy systems and ensure lower operating cost over time.
STEP BY STEP
How ESI Works
Preparation Phase:
A standardised ESI contract is established between the SME, financial institution, and technology provider, setting out the terms of the energy savings agreement]
Contract Activation:
A third-party validation entity evaluates the project’s energy savings. The insurance company covers the validated energy savings and the contract is activated.
Implementation Phase:
The technology provider instals the new energy-efficient system and the validation entity verifies and validates that the installation is in accordance with the contract.
Operation Phase:
The operation of the new equipment results in reduced energy costs, improved performance, higher productivity, and sustainability. Maintenance services by the technology provider ensure that the equipment is operating optimally.
Savings Monitoring:
The energy savings are measured and annually reported by the technology provider via a simple online system, where they are checked and can be approved by their clients. In the case that there are disagreements on the savings achieved, the validation entity steps in and acts as an arbiter.
Insurance Coverage:
If the savings are not achieved, and the technology provider is not able to respond to their contractual commitment, the insurance steps in to cover the promised savings.
BENEFITING FROM ESI
Who Is It For?
Banks & Financial Institutions
Insurance Companies
SMEs
Technology Providers
PROGRAM PARTNERS
Implementing Agency
ASEAN Centre for Energy
Programme Funder
GET INVOLVED
Interested in ESI? Get in touch.
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