Current Size and Remaining Market Potential of the U.S. Energy Service Company Industry

Estimating customer electricity savings from projects installed by the U.S. ESCO industry

“…We also conduct biennial surveys to determine the current and projected size of the U.S. ESCO industry (Goldman et al 2002;Hopper et al 2007;Satchwell et al 2010;and Stuart et al 2013). We used these two data sources to estimate electricity savings provided by ESCOs in recent years.…”

“…ESCOs have had the most success targeting customers in the public and institutional facilities sector, typically through the use of ESPCs (Larsen et al 2012;Goldman et al 2005;Hopper et al 2005, Stuart et al 2013. ESPCs allow public entities to implement equipment and facility upgrades to achieve energy and water savings with little or no up-front investment and offer another (often quicker) option than waiting for the appropriation of public funds (Bingaman et al 2014).…”

“…The U.S. ESCO industry reported annual revenues of $5.3 billion in 2011 with revenues expected to grow to ~$6.4 billion by the end of 2013 (Stuart et al 2013). Stuart et al (2013) also estimated a remaining market potential of $77 billion to $133 billion in facilities commonly serviced by ESCOs.…”

“…Stuart et al (2013) also estimated a remaining market potential of $77 billion to $133 billion in facilities commonly serviced by ESCOs.…”

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Executive SummaryThe U.S. energy service company (ESCO) industry has a well-established track record of delivering substantial energy and dollar savings in the public and institutional facilities sector, typically through the use of energy savings performance contracts (ESPC) (Larsen et al 2012;Goldman et al 2005;Hopper et al 2005, Stuart et al 2013. This ~$6.4 billion industry, which is expected to grow significantly over the next five years, may play an important role in achieving demand-side energy efficiency under local/state/federal environmental policy goals.

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