Berkeley Lab Tracks Energy Services Growth

A recently issued report from the Lawrence Berkeley National Laboratory and the National Assn. of Energy Service Companies (NAESCO) documents that the revenues of energy service companies (ESCOs) grew by 20% per year from 2004 to 2006 and totaled about $3.6 billion in 2006. According to the study, “A Survey of the U.

06/01/2007



A recently issued report from the Lawrence Berkeley National Laboratory and the National Assn. of Energy Service Companies (NAESCO) documents that the revenues of energy service companies (ESCOs) grew by 20% per year from 2004 to 2006 and totaled about $3.6 billion in 2006.

According to the study, “A Survey of the U.S. ESCO Industry Market Growth and Development from 2000 to 2006,” energy efficiency accounted for almost three quarters of those revenues (or $2.5 billion per year). The authors state that one of the more interesting survey findings is that the private-sector investment in energy efficiency leveraged by ESCOs is comparable to the dollar amount of the authorized spending for utility and public benefit energy efficiency programs.

Buddy Hahs, chairman of NAESCO and CEO of Custom Energy Services, said that the survey “represents a snapshot of the increasingly significant role that ESCOs play in delivering large blocks of energy efficiency resources to a wide range of building owners and end users.” Customer-sited generation, including those employing renewable energy technologies, also was an important growth area for ESCOs.

The authors of the report suggest that a consensus appears to be emerging among many regulators, utilities, legislators and customers on moving energy efficiency forward as a high-priority resource. Adam Procell, vice chairman of NAESCO and vice president of DMJM Harris, said that “as initiatives are being developed to encourage and support increased energy-efficiency investment, it is increasingly important to understand the process for procuring and delivering energy efficiency resources in various markets.”

The LBNL-NAESCO survey results are based on interviews with 33 of 46 leading ESCOs. The report attributes the increases in ESCO activity to customer response to rising energy prices, renewed interest in energy efficiency and climate change, re-authorization of energy savings performance contracts in the federal market, the adoption of aggressive energy savings goals for federal agencies, and the ramping up of public-benefit and ratepayer-funded energy efficiency and renewable energy programs. ESCOs also project high growth rates for the next two years.

In addition, the composition of the ESCO industry continues to evolve with significant industry consolidation since 2000.

ESCOs can be an important trade ally, one author said, in selected market sectors for program administrators of utility ratepayer-funded energy efficiency programs. ESCOs can complement and support energy efficiency programs.





No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Integrating electrical and HVAC for energy efficiency; Mixed-use buildings; ASHRAE 90.4; Wireless fire alarms assessment and challenges
integrated building networks, NFPA 99, recover waste heat, chilled water systems, Internet of Things, BAS controls
40 Under 40; Performance-based design; Clean agent fire suppression; NFPA 92; Future of commissioning; Successful project management principles
Transformers; Electrical system design; Selecting and sizing transformers; Grounded and ungrounded system design, Paralleling generator systems
Commissioning electrical systems; Designing emergency and standby generator systems; VFDs in high-performance buildings
Tying a microgrid to the smart grid; Paralleling generator systems; Previewing NEC 2017 changes
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me