Despite the significant benefits of energy efficiency to facility owners and to society, experience has shown that most customers are reluctant to invest their own funds in options for energy efficiency improvement. Barriers to customer investment in energy efficiency include lack of knowledge or experience with the appropriate technologies, limited availability of capital, lack of motivation, the need for rapid paybacks, management priorities, and transaction costs related to the identification and installation of energy efficient equipment. Utilities in developing countries have limited experience, capabilities, and staff resources for implementing energy efficiency options. Moreover, the senior management of most utilities in developing countries view their business as one of producing and supplying energy, rather than investing in customer’s facilities to improve energy efficiency. As a result, utilities in developing countries have exhibited very little interest or motivation toward energy efficiency improvement. Similarly, government agencies in developing countries have a number of important problems to address, and while energy efficiency is gaining in importance as a problem of national priority, governments often lack the necessary expertise or implementation capability to undertake widespread programs for implementing energy efficient technologies or equipment. As a result of these barriers there has been relatively little activity with respect to energy efficiency in most developing countries. This presents an opportunity for ESCOs, which offer an excellent vehicle for implementing energy efficiency options quickly, efficiently and cost effectively.