Cover -- Title Page -- Contents -- Foreword -- Acknowledgments -- Acronyms and Abbreviations -- Weights, Measures, and Conversion Factors -- Exchange Rates As of June 30, 2007 -- Overview -- Energy Efficiency Financing and the Three Country Energy Efficiency Project -- The Need for Energy Efficiency Investment Financing Interventions -- Delivery of Energy Efficiency Financing is an Institutional Development Issue -- Delivering Investment Project Designs and Technical Appraisals -- Delivering Financing -- Making Integrated Mechanisms Work -- Moving Ahead -- PART 1 Lessons from Energy Efficiency Financing Operations in China, India, and Brazil -- CHAPTER 1 Introduction -- Introduction -- Energy and Growth -- Why Energy Efficiency is Important -- The Three Country Energy Efficiency Project -- Roadmap for This Book -- Notes -- CHAPTER 2 Summary of the Energy Efficiency Terrain -- Introduction -- Reclassifying the Energy Efficiency Terrain -- Improving Energy Efficiency in New Facilities -- Improving Energy Efficiency in Existing Facilities -- Restructuring of Existing Operations -- Standard Energy Efficiency Projects -- Conclusions -- Energy Efficiency Investment in Industry -- Energy Efficiency Investments in Buildings -- Energy Efficiency Investments in Transportation -- The Focus of This Book: Standard Energy Efficiency Projects -- Notes -- CHAPTER 3 Origins and Persistence of Energy Inefficiency -- Introduction -- The Importance of Institutional Environments for Energy Efficiency Investment -- Additional Challenges Posed by Institutional Frameworks in Developing Market Economies -- Missing or incomplete markets, in particular markets for risk -- Political and economic uncertainty -- Weak contracting institutions (legal systems) result in insecure contracts with low certainty of equitable enforcement.

Production Versus Efficiency Investment in Rapidly Growing Economies -- Growth Trumps Productive Efficiency -- Notes -- CHAPTER 4 Models for Delivering Energy Efficiency Investments -- Introduction -- A General Model for Successful Delivery Programs for Energy Efficiency Investment -- Examples of Delivery Mechanisms for Energy Efficiency Investments -- Energy Efficiency Loan Financing and Loan Guarantee Schemes -- Delivery of Energy Efficiency Investment through ESCOs or Other Independent Actors -- Utility DSM Programs -- The Benefits of Small, Targeted Program Interventions -- The Role of Monitoring and Evaluation -- Making Energy Efficiency Investment Happen Spontaneously -- Notes -- CHAPTER 5 Identifying and Developing Energy Efficiency Investment Projects -- Introduction -- Market Selection and Outreach -- Market Selection -- Market Outreach -- Project Development: Identifying, Clarifying, and Allocating Risk -- Means to Identify Potential Projects -- Detailed Project Design -- Institutional Capacities for Energy Efficiency Project Development -- In-Country Technical Capacity -- Combining Technical and Financial Risk Assessment Skills -- Making Choices About Outsourcing -- Outsourcing by End Users -- Outsourcing by Financiers -- Outsourcing Options -- Some Options to Minimize Transaction costs -- Notes -- CHAPTER 6 Delivery of Financing -- What Needs to be Delivered? -- The Institutional Environment for Financing: The Different Worlds of Bankers and Energy Efficiency Project Promoters -- The View from Energy Efficiency Promoters -- The View from Local Banks -- Dealing with Banking Systems in Transition or under Development -- Institutional Options for Delivery of Financing -- Dealing with Repayment Issues in Energy Efficiency Projects and New Financing Product Development -- Notes -- CHAPTER 7 Making Investment Delivery Mechanisms Work.

Introduction -- Basic Principles -- Energy Efficiency Lending Through Local Financial Institutions -- Commercial Banks -- Design of major operations might best begin with partnering with the financial intermediaries and catering to their business approach and market development strategies -- Dealing with the incentives of banks to parti cipate in energy efficiency lending -- Integration of institutional arrangements for technical assessment work with the financial intermediation of the banks is essential -- The SME energy efficiency lending programs of Indian banks -- The proposed World Bank energy efficiency line-of-credit project in China -- Loan Guarantee Programs -- Program objectives -- Program structure -- Local banking environment -- Guarantee coverage -- Technical assessment arrangements -- Labor intensity -- Use of Development Finance Institutions and Special Revolving Funds -- Energy Service Companies (ESCOs) -- Energy Utility Demand-Side Management (DSM) -- Notes -- CHAPTER 8 Conclusions and Recommendations -- Introduction -- Suggestions for each of the Three Countries -- Brazil -- China -- India -- Suggested Roles for International Financial Institutions -- Use of Different Financing Tools and the Role of IFI Lending -- The Important Role of the GEF -- Operational Suggestions on Development of New Projects -- Notes -- PART 2 Energy Efficiency Finance Case Studies -- Introduction to Part II -- Introduction -- The Financial Mechanisms -- Country Institutional Context -- Alternatives for Structuring Deals -- Institutional Development Mechanisms -- Notes -- 1 China Esco Loan Guarantee Program -- Introduction -- Program Origins and Objectives -- Institutional Arrangements: The Flow of Funds -- Results of the Program to Date -- Summary of The advantages and Disadvantages of This Approach -- Use of a local guarantee company for implementation.

Combination of public institutions and commercial interests -- 2 Hungary Energy Efficiency Guarantee Fund1 -- Introduction -- Institutional Arrangements and Results -- The Role of Project Developers and Their Relationship with the Banks -- The Importance of Technical Assistance -- Advantages and Disadvantages of Guarantee Products -- Necessary Conditions and Lessons Learned -- Notes -- 3 Romania Energy Efficiency Fund -- Introduction -- Institutional Arrangements -- Lessons Learned -- Lessons from the Bulgarian Energy Efficiency Fund -- Notes -- 4 Ireda Energy Efficiency Loan Fund -- Introduction -- Project Description and Initial Results -- Pros and Cons of Public Sector DFI Approach -- Looking Ahead -- Notes -- 5 Energy Efficiency Cluster Lending for SMEs by Indian Banks -- Introduction -- Background -- The Importance and the Problems of the SME Sector in India -- Early Cluster Lending Approaches -- Project Example: Technical Experts for the Auto Cluster at Pune -- Technical Assistance in Identifying Additional Technology Options -- Recent Energy Efficiency Cluster Lending Initiatives -- Key Issues Identified for Energy Efficiency Lending to SMEs -- Lessons Learned and the Way Forward -- Notes -- 6 Lithuania Energy Efficiency and Housing Pilot Project -- Introduction -- Institutional Arrangements and Results -- Financial Intermediation and Subsidy Arrangements -- Energy Efficiency Investments and Results -- Follow-up -- Lessons Learned -- Notes -- 7 China's Full-Service ESCOs -- Introduction -- The Chinese ESCO Mechanism -- Project Support for Esco Development in China -- Advantages and Disadvantages of the Chinese Full-Service Esco Model -- Lessons Learned From the China Esco Promotion Program -- Strong, consistent public sector support was essential for the ESCO industry to get started and take hold in China.

Flexible adaptation to local conditions has been critical -- Development of an ESCO Association has been helpful -- 8 ESCO Development in the United States and Canada -- Introduction -- The Importance of Public Building Energy Efficiency Programs for ESCO Development -- U.S. ESCO Development -- Canadian ESCO Development -- Observations and Lessons Learned -- Government commitment was essential -- Numerous creditworthy public facility customers with replicable projects provided a great market -- Public sector contracting and procurement are barriers that can be overcome by a government committed to energy performance contracting -- The U.S. and Canadian ESCOs developed a niche market-public buildings -- Notes -- 9 Brazil Public Benefit Wire-Charge Mechanism -- Introduction -- Institutional Arrangements and Results -- Advantages and Disadvantages of Wire-Charge Funding -- Notes -- 10 Sri Lanka DSM: Using The Utility Bill as a Loan Repayment Mechanism -- Introduction -- Program Description -- Note -- 11 Dongying Shengdong EMC Waste Gas Power Projects -- Introduction -- Company and Business Background -- Sample Project: A 1.9 MW Power Station at A Coking Plant -- Technical content and responsibilities -- Investment and financing approach -- Repayment agreement with the customer -- Lessons Learned -- 12 Iqara Energy Services in Brazil -- Introduction -- Institutional Arrangements and Results -- Advantages and Disadvantages of this Model -- Lessons Learned -- Notes -- 13 India Capacitor Leasing -- Introduction -- Description -- Lessons Learned -- Bibliography -- Appendix. Glossary of Selected Terms in New Institutional Economics (NIE) that Relate to Energy Efficiency Finance -- Index -- Back Cover.