Mauritius to use Energy Performance Contracting as Key Energy Efficiency Targets

Mauritius is moving forward on meeting its climate commitments under its recently submitted Nationally Determined Contribution (NDC) 3.0, identifying Energy Performance Contracting (EPC) as a central implementation framework for achieving its energy efficiency targets. The country aims for a 10% improvement in energy efficiency by 2035, as outlined in its NDC submission to the UNFCCC on 29 September 2025, ahead of COP30.

To support this ambition, the UNEP Copenhagen Climate Centre, in collaboration with the Energy Efficiency Management Office (EEMO) of the Ministry of Energy and Public Utilities, is preparing for the launch of a De-risking Facility for Energy Performance Contracting, with support from the Mitigation Action Facility.

De-risking Facility: Unlocking Investments and Impact

The De-risking Facility addresses key financial barriers faced by Energy Service Companies (ESCOs) in implementing energy efficiency projects through EPC. By providing first-loss guarantees to Mauritian financial institutions, the facility will enable loans to ESCOs, catalyzing private sector investment in energy efficiency.

The expected impact is significant:

• €63 million in investments for energy conservation measures
• 973 GWh of electricity savings
• €130 million in financial savings
• 566,114 of CO₂ emissions reductions

These outcomes correspond to approximately 27% of Mauritius’ energy efficiency target under NDC 3.0, positioning EPC as a cornerstone of the country’s climate strategy.

Building Readiness: Policy, Financing, and Capacity Development

UNEP Copenhagen Climate Centre support has identified necessary amendments to Energy Efficiency and Public Procurement laws, enabling EPC implementation and public procurement of ESCO services. These amendments are expected to be enacted in 2026, alongside the introduction of an ESCO accreditation system.

Two critical pillars for EPC success—Financing and Measurement & Verification (M&V)—are being strengthened through targeted capacity-building initiatives:

• IEEFP Training: UNEP Copenhagen Climate Centre partnered with the Efficiency Valuation Organization to train Mauritian banks and the future Fund Manager on the International Energy Efficiency Financing Protocol (IEEFP). The training equipped 15 participants with skills to:
  • Assess energy efficiency project savings for loan repayment
  • Evaluate and mitigate project risks
  • Structure project-based loans with attractive IRR
  • Understand the role of M&V in ensuring sustainable savings
• PMVA Certification: Training for ESCO practitioners, energy auditors, and service providers focused on International Performance Measurement and Verification Protocol (IPMVP) principles. Participants earned Performance Measurement and Verification Analyst (PMVA) certification—a key requirement for ESCO accreditation under Mauritius’ upcoming EPC regulation.

Driving NDC Implementation Through Energy Efficiency

Energy efficiency is a critical lever for achieving climate targets under the Paris Agreement. By integrating EPC into its NDC implementation strategy, Mauritius demonstrates leadership in mobilizing private sector investment and creating a robust market for energy services.