High-energy costs are driving the demand for energy auditing and development of Energy Efficiency Services, though these are still very weak in terms of the delivery of verifiable energy savings. At present there are a few Energy Service Companies (ESCOs) in India. ESCO projects are mostly being carried out under guaranteed energy savings scheme, with investment financed by the facility owner or project host. There is growing demand for energy efficiency services and performance contracting in the government buildings and municipalities. ECO-III has been providing technical assistance to Gujarat Urban Development Company (GUDC) in improving energy efficiency through ESCO model in street lighting and water pumping facilities in Urban Local Bodies (ULBs) of Gujarat.