Financing of Energy Efficiency in Public Goods: The Case of Street Lighting Systems in Indonesia

Energy demand growth in Asian countries is predicted to be the highest world. One of drivers energy urbanization. Along with growing urban areas, public infrastructure, such as streetlights, also expanding. Unfortunately, conservation measures facilities are commonly constrained by budget limitations local governments, while potential participation service companies (ESCO) requires regulation reformation settling contradicting regulations. This study proposes several policy recommendations modify existing guidelines for selecting ESCOs efficiency streetlights Indonesia that has urbanization rate. Regulation review and improvements provided. In 2017, Ministry Domestic Affairs released a Circular Letter solve barriers ESCO businesses sectors; however, could improved ways eliminating clauses on holder intellectual property rights, revising valuation economic benefit bidding, increasing maximum contract period. Moreover, we propose use smart street lighting technologies improve value-added services establishment super accelerate business activity all sectors.