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Energy Savings Insurance: Pilot Progress, Lessons Learned, and Replication Plan
The Energy Savings Insurance (ESI) instrument is designed to stimulate energy efficiency investments by small and medium enterprises (SMEs) by mitigating the risk that actual energy savings fall below projections. A pilot in Mexico's agro-industry sector targets 10 fast-track projects valued at USD 2.14 million, utilizing a package of surety insurance, credit lines from FIRA, and third-party verification by ANCE. Financial modeling indicates that the ESI package can absorb 60-80% of the impact of underperformance on debt service repayments, significantly reducing risk for both equity investors and loan providers. The report proposes scaling the initiative to 6-14 additional Latin American and Caribbean countries through a regional facility, with further replication planned for China, India, Indonesia, and Africa, aiming for a global potential of USD 10-100 billion in investments by 2030.
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Document type: Report