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JOINT REPORT: From Procurement to Performance: Towards a Private Sector-Led, Service-Based Model to Scale Up Sustainable Electrification of Public Institutions

This knowledge brief focuses on designing private sector-led service-based models to address both sustainability and scalability.  The service-based model, as a particularly innovative approach to sustainability and scalability and one that is relatively less understood in the context of the electrification of public institutions. As explored later in this brief, the service-based model represents an opportunity for a new set of stakeholders — primarily from the private sector — to take on an expanded role in the delivery of energy services to public institutions (e.g., rather than just focusing on procurement and installation). It also changes how electricity is paid for by the end-user (or the organizations that support them), shifting from the procurement of energy assets to paying for energy services. There is now a need to assess the model’s feasibility and determine how and where it could be viable and scaled up, giving the private sector enough confidence to invest in the electrification of public institutions.

Citation

The development of the report was led by Jem Porcaro and Luc Severi from SEforALL and Rahul Srinivasan from ESMAP/World Bank, with valuable support from Jaryeong Kim, Olivia Coldrey and Christine Eibs Singer (SEforALL) and the following ESMAP/World Bank team members: Gabriela Elizondo Azuela, Raluca Georgiana Golumbeanu, James Knuckles, Chris Purcell, Chris Greacen, Dana Rysankova and Raihan Elahi.

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