Energy Performance Contracting (EPC) could deliver some of the largest and fastest energy and emissions savings in Mauritius’ buildings sector, particularly in hotels, resorts and shopping malls. A guarantee mechanism supported by the Mitigation Action Facility aims to reduce financial risk and unlock private investment at scale.
On 23 January 2026, stakeholders from across Mauritius’ energy efficiency ecosystem gathered in Port Louis for the event “Energy Performance Contracting for Hotels, Resorts & Malls – Unlocking Your Energy Efficiency Potential”. The event, supported by the UNEP Copenhagen Climate Centre (UNEP-CCC), brought together energy service companies (ESCOs), hospitality and retail operators, financial institutions and public authorities to explore how EPC can help overcome upfront investment barriers and accelerate energy efficiency deployment.
Mauritius currently relies heavily on imported fossil fuels, with more than 90% of its energy supply coming from imports. At the same time, demand for cooling is rising rapidly, driven by increasing temperatures. Imports of air-conditioning units more than doubled between 2023 and 2024, underscoring the urgency of improving the energy performance of buildings.
Energy audits conducted under Mauritius’ mandatory energy audit programme show substantial savings potential, particularly in large commercial buildings. However, realising this potential would require investments of around 3.2 billion Mauritian rupees (approximately EUR 63 million), highlighting the need for innovative financing solutions.
Reducing risk to unlock private capital
EPC allows ESCOs to finance, install and manage energy efficiency measures, with investments repaid through guaranteed energy savings. Despite its strong potential, EPC uptake in Mauritius has been limited, as ESCOs face challenges in providing collateral when they invest in their clients’ facilities, and commercial banks perceive such projects as high risk.
To address this barrier, a project being prepared by UNEP-CCC and funded by the Mitigation Action Facility is designing a revolving first-loss guarantee mechanism. The mechanism aims to reduce financial risk for local banks and unlock private capital for ESCO-led energy efficiency investments in both the public and private sectors.
Analysis presented at the event shows that scaling up EPC through an effective guarantee mechanism could cover 25% of Mauritius’ energy efficiency targets under its updated Nationally Determined Contribution (NDC 3.0), while delivering significant emissions reductions and cost savings.
Proven results on the ground
At the event, local and international ESCOs shared concrete examples demonstrating the business case for EPC. Mauritian ESCO IBL presented a project that achieved a 10% reduction in energy consumption through smart energy management systems, delivering annual savings of over 500,000 Mauritian rupees and reducing emissions by 76 tonnes of CO₂, without requiring upfront investment from the client.
Another local ESCO, Ecoasis, showcased a major retrofit at Bagatelle Mall, where decentralized cooling units were replaced with centralized chillers and advanced monitoring systems. The project improved energy efficiency by more than 20%, saving around one million kilowatt-hours, nearly 1,000 tonnes of CO₂ and approximately eight million rupees annually.
International experience from India and South Africa reinforced these findings, highlighting EPC as a commercially viable and scalable model across sectors.
Enabling transformational change
Beyond the guarantee mechanism, the Mitigation Action Facility–funded project supports capacity development for financial institutions, certification of ESCO professionals in measurement and verification, and improvements to the regulatory and procurement framework for ESCO services.
“Today we are convinced that energy efficiency will be instrumental in achieving our objectives: development, sustainability, and energy security. We know how to conduct energy audits. We are comfortable with cost estimates, but now it is imperative to move from auditing to action. It is within this framework that Energy Performance Contracts … and the role of ESCOs resides. This represents a new approach to addressing a long-standing problem: the link between technical, financial, and risk-bearing aspects.”
— Patrick Gervais Assirvaden, Minister of Energy and Public Utilities
The project also highlights energy efficiency as a driver of skills development and job creation in Mauritius. This was showcased at an Education and Job Fair on energy efficiency at the University of Mauritius the following week, co-organised with the Ministry of Energy and Public Utilities, the EEMO and UNEP-CCC. Bringing together students, educators, ESCOs and public institutions, the event explored training pathways and career opportunities in a sector poised for rapid growth. The event also highlighted the need for women talent in this highly technical and male dominated sector. The expected rapid growth cannot afford letting the inherent talent of half of the young population remain untapped. As energy efficiency investments scale up, demand for skilled technicians, engineers, auditors and finance professionals is expected to rise, creating strong employment prospects, particularly for young people.
Together, these measures aim to create the conditions for a transformational scale-up of energy efficiency investment in Mauritius, strengthening energy security, reducing emissions, and supporting sustainable economic growth.
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