U.S. Energy Service Company (ESCO) Industry: Recent Market Trends

Stuart, Elizabeth; Larsen, Peter H.; Carvallo, Juan Pablo; Goldman, Charles A.; Gilligan, Donald

doi:10.2172/1342939

Cited by 22 publications

(25 citation statements)

References 6 publications

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“…The ESCO does not benefit from performance levels that are above the guarantee. The ESCO market now mostly uses the guaranteed savings model [14,35].…”

Section: Conventional Energy Performance Contracting Risk Mitigationmentioning

confidence: 99%

Risk Mitigation in Energy Efficiency Retrofit Projects Using Automated Performance Control

Taminiau¹,

Byrne²,

Carretero³

et al. 2021

Sustainable Energy Investment - Technical, Market and Policy Innovations to Address Risk

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Performance gap concerns limit investment in the building energy efficiency retrofit market. In particular, the ability of projects to deliver on promised energy savings is commonly drawn into question. Performance risk mitigation mainly occurs through energy saving performance guarantees. Contractual stipulations arrange the conditions of the guarantee, and ceteris paribus, a higher energy saving guarantee should reduce project performance risk. Therefore, methods that yield a higher energy saving guarantee could help accelerate the market. We review the ability of “smart,” automated, and connected technologies to: (a) intelligently monitor and control the performance of energy-consuming devices to reduce performance variations, (b) provide additional degrees of control over the project’s performance, and, by doing so, (c) motivate the energy services company (ESCO) to raise the energy saving guarantee. Our analysis finds that use of such automated performance control could significantly raise the energy saving guarantee, making projects more likely to succeed.

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“…The ESCO does not benefit from performance levels that are above the guarantee. The ESCO market now mostly uses the guaranteed savings model [14,35].…”

Section: Conventional Energy Performance Contracting Risk Mitigationmentioning

confidence: 99%

Risk Mitigation in Energy Efficiency Retrofit Projects Using Automated Performance Control

Taminiau¹,

Byrne²,

Carretero³

et al. 2021

Sustainable Energy Investment - Technical, Market and Policy Innovations to Address Risk

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“…energy-efficiency opportunities across multiple end uses, 109 Similarly, the ESCOs eligible to participate in a project in India must be empaneled with the BEE-the national policy-making entity for advancing energy efficiency in India-following a defined due diligence procedure. Non-empaneled ESCOs can participate only after they are graded by authorized credit rating agencies.…”

Section: Facility Owner-as-borrower Modelmentioning

confidence: 99%

Compendium to the Primer for Space Cooling

2020

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This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

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“…Residential investment through PACE financing has risen dramatically in the past five years, facilitating $3.8 billion in clean energy investments (PACENation n.d.). Investment in residential clean energy (all multifamily) through ESPCs accounted for over $150 million in Energy Service Company (ESCO) revenues in 2014 (Stuart, et al 2016). There are few firms using ESAs in the single-family residential sector, and there is little information on ESA investment in the multifamily sector.…”

Section: August 2017mentioning

confidence: 99%

“…ESPCs are used to facilitate billions of dollars in clean energy investments each year, although very little of that is focused on the residential sector. In 2014, over $150 million of ESCO revenue was generated through projects in public housing and other miscellaneous projects (Stuart, et al 2016). …”

Section: August 2017mentioning

confidence: 99%

“…They are common in public and institutional buildings within the MUSH sector (municipalities, universities, schools, and hospitals) and frequently used in public housing (see the text box "Public Sector Affordable Housing"). For example, in 2014, ESPCs for public housing and other miscellaneous projects generated over $150 million revenue (Stuart, et al 2016). …”

Section: Savings-backed Arrangements: Energy Service Agreements and Ementioning

confidence: 99%

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Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities

Leventis

Kramer

Schwartz

2017

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The authors received guidance and comments from many members of the SEE Action Network. We also received highly valuable input from experts and practitioners in a range of fields. Organizations listed were current as of the time communications took place regarding this report. List of Tables Executive SummaryEnsuring that low-and moderate-income (LMI) households have access to energy efficiency is equitable, provides energy savings as a resource to meet energy needs, and can support multiple policy goals, such as affordable energy, job creation, and improved public health. Although the need is great, many LMI households may not be able to afford efficiency improvements or may be inhibited from adopting efficiency for other reasons. Decisionmakers across the country are currently exploring the challenges and potential solutions to ramping up adoption of efficiency in LMI households. Many are exploring the use of financing as a potential tool toward meeting that goal.This report provides an overview of energy efficiency financing programs nationwide-in both the single family (SF) and multifamily (MF) sectors-that are reaching LMI households. These households are defined in multiple ways-for example, for program qualification. For the purpose of examining sector characteristics, this report defines LMI households as those making less than 300 percent of the federal poverty level (FPL). 1 Financing broadly refers to loans or products that enable investments in energy improvements in LMI households, which are recouped from the household over a schedule. 2The report's objective is to offer state and local policymakers, state utility regulators, program administrators, financial institutions, consumer advocates and other LMI stakeholders with an understanding of:• The relationship between LMI communities and energy efficiency, including important considerations for its use for these households• Lessons learned from existing energy efficiency financing programs serving LMI households• The financing products these programs use and their relative advantages and disadvantages in addressing barriers to financing or to energy efficiency uptake for LMI households Key Characteristics of LMI HouseholdsFollowing are key characteristics of LMI households that are relevant to energy efficiency and financing program design for LMI households. Housing Vintage, Housing Stock, and Ownership PatternsThe lower the income, the more likely the household lives in older housing. This has two implications.• Older housing stock is more likely to need health, safety, and structural work, sometimes before efficiency improvements can be made. These non-energy measures are often ineligible for efficiency financing programs. If the program requires that savings pay for financing payment obligations, adding non-energy measures to a project may not pencil out. This can limit the households that can use financing to pay for efficiency.• Older housing tends to be less efficient. LMI households spend more per square foot on energy services than h...

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U.S. Energy Service Company (ESCO) Industry: Recent Market Trends

Cited by 22 publications

References 6 publications

Risk Mitigation in Energy Efficiency Retrofit Projects Using Automated Performance Control

Risk Mitigation in Energy Efficiency Retrofit Projects Using Automated Performance Control

Compendium to the Primer for Space Cooling

Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities

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