The Energy Services Company (ESCO) Industry: Industry and Market Trends

Publication Type

Report

Date Published

08/1998

LBNL Report Number

LBNL-41925

Abstract

As retail competition accelerates, energy service companies (ESCOs) are confronting major structural changes in the "energy services" industry and a business environment in which many large customers are re-thinking their energy-related purchasing practices. This paper analyzes recent trends in the ESCO industry and looks specifically at how traditional performance contracting firms are faring during the transition to a new market structure. We also discuss trends in both established and emerging ESCO markets. Key findings include: (1) Independent ESCOs are declining both in number and share of the market for energy-efficiency services; (2) Utility-owned ESCOs and retail energy service companies (RESCOs) are an increasingly significant force in the energy-efficiency services market; and (3) Performance contracting, long a hallmark of the ESCO industry, is being overtaken by other forms of energy service contracts in percentage of total revenue.

Year of Publication

1998

Refereed Designation

Unknown

Institution

LBNL

City

Berkeley

Organization: 

Research Areas: