Financial planners of both private and public entities face permanent constraints in the availability of budget for capital expenditures. This means that the allocation process is heavily contested, with projects competing to provide the best value for the shareholders or citizens. This situation is usually evident in the status of lower-priority infrastructure such as the mechanical and electrical components of buildings.
Alternative financing models provided by either financial institutions or directly by Energy Services Companies (ESCOs) allow asset owners to renovate their buildings, using the reduced operational expenditures (typically from energy consumption) to pay for the renovation in off-balance sheet models. Although accounting regulation has become increasingly strict in such schemes, there are still financing structures that allow for it. EC&D can support asset owners to identify and develop agreements both with financial institutions and ESCOs that provide these services to ensure an optimum impact while minimizing risks.