Improving of buildings energy efficiency is one of the ways how to start solving of complex problems in the housing sector. It will reduce electricity costs for both the state and consumers, will improve the condition of buildings and will reduce environmental pollution. Building energy efficiency is not only a technical problem, but a multi-faceted issue that has social, economic and environmental aspects. The main duty of the State is to guarantee energy and social welfare, despite of the fact that the maintenance of buildings is now the responsibility of tenants. It is necessary to explore alternative cost-effective ways to revive living areas, simulteniosly lowering energy costs, environment impacts and improving social conditions. Based on the above mentioned arguments, the topic of the article is relevant and has the scientific and practical significance, because the innovative activity of energy service companies (ESCOs) in Latvia were studied and analyzed. They provide the attraction of private capital, thus contributing to the implementation of energy efficiency measures for housing resources and reduce spending to pay for heating and electricity. The article analyzes the ESCO model operation principles and provides practical advice on their implementation in Latvia. The purpose of the article is to explore the possibilities of an ESCO in Latvia, to analyze options, problems and solutions for its implementation, thus contributing to the development of the buildings reconstruction.