Investing in energy efficiency with confidence

ESI guarantees energy savings for energy efficiency projects

ESI supports banks, insurers, and small and medium-sized enterprises by improving confidence and predictability in energy efficiency projects.

Learn how ESI works Contact ESI Indonesia

Energy technician installing solar panels on a small business rooftop in Indonesia

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.

#01

STANDARDISED CONTRACT

A standardised, simplified contract sets a clear and transparent framework for negotiations between technology providers that offer their efficient solution, and their final clients. It defines the energy savings commitment of the technology provider and how these savings are measured, validated, guaranteed, and insured.

#02

VALIDATION

An independent technical validation process is established by a credible third-party to evaluate the capacity of the project to deliver promised energy savings, verify the installation, and provide a technical opinion in cases of disagreement between the parties or project underperformance. This process helps the technology provider and the client determine whether compensation is required and, if so, the appropriate amount.

#03

INSURANCE PRODUCT

At the core of the ESI model is a risk coverage product, typically structured as a surety bond, that ensures the Client can receive financial compensation if the new energy-efficient system does not achieve the expected savings and the technology Provider fails to fulfil its initial obligation to compensate the client.

#04

FINANCING

Existing financial instruments, such as green loans, or new financing products can be linked to energy efficiency projects using ESI. This provides better loan terms and support, making it easier for smaller customers to fund energy-efficient upgrades.

Step by step

Step 01

Preparation Phase

An energy-efficient technology provider offers a project, with the promised energy savings guaranteed. The ESI elements and each party's responsibilities are described in the simple, standardised contract.

Step 02

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.

Step 03

Implementation Phase

The technology provider installs the new energy-efficient system and the validation entity verifies and validates that the installation is in accordance with the contract.

Step 04

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.

Step 05

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.

Step 06

Insurance Coverage

If the savings are not achieved, and the technology provider cannot respond to their contractual commitment, the insurance steps in to cover the promised savings.

Picture this: a family-run hotel in Bandung upgrades its chiller.

Guests are comfortable, but an ageing chiller is draining the business. By upgrading through ESI, they turned a supplier's promise into a protected investment.

"The new chiller cuts cooling electricity consumption by 35%, saving roughly US$24,000 per year."

Case Study: Mason Pine Hotel

A neighbourhood supermarket in Surabaya modernised its refrigeration.

Ageing display coolers were pushing electricity bills higher every month. Through ESI, the supermarket upgraded to efficient refrigeration units backed by validated performance and insurance protection.

"Our electricity bill dropped by 30%, and our produce stays fresher for longer. ESI made the upgrade a safe bet."

Case Study: Pasar Segar Supermarket

Benefiting from ESI

Who Is It For?

Small & Medium Enterprises

Small and medium-sized enterprises looking to reduce energy costs by upgrading their equipment. The guarantee coverage reduce risks and enable a better access to financing.