Energy Service Companies and Energy Performance Contracting: is there a need to renew the business model? Insights from a Delphi study

Local and regional energy companies offering energy services: Key activities and implications for the business model

“…As noted by Pätäri and Sinkkonen (2014), many studies of energy services have concentrated on evaluating either the outcome of individual energy service projects (Okkonen and Suhonen, 2010;Sovacool, 2013;Wood and Rowley, 2011), specific situations, and the inherent business models (such as Mahapatra et al [2013] and their one-stop-shop business model concept aimed at single-family houses) or the measures needed to improve them (Painuly et al, 2003;Soratana and Marriott, 2010;Sorrell, 2007). In recent years, also more applied simulation models that could potentially be used by energy companies in order calculate the potential performance of EPCs (advanced energy services) have been introduced (see e.g., Deng et al, 2015).…”

“…Improving energy efficiency thus signifies a more efficient utilization of resources, and one way to improve energy efficiency in the energy system is by undertaking investments in energy services. Although the energy service concept was introduced in the early 1980s (Okay and Akman, 2010), today this concept is characterized by definitional confusion (Marino et al, 2011;Pätäri and Sinkkonen, 2014). Table 1 summarizes definitions of energy services presented in some of the most cited journal articles identified using the Web of Science.…”

“…The overall research aim of this paper-to examine what is needed for energy companies to successfully implement energy services and consequently provide them to the market-has been touched on by very few studies (e.g., Hannon et al, 2013;Pätäri and Sinkkonen, 2014;Suhonen and Okkonen, 2013). The few such studies that do exist primarily consider different versions of supply and performance contracts-such as EPCs-even though these constitute only one service type that energy service companies offer (cf.…”

“…Compared with the traditional energy "product," which is homogeneous and difficult to differentiate, the energy service needs of various customers can be very heterogeneous (Pätäri and Sinkkonen, 2014), offering ample opportunities for segmentation and differentiation. This heterogeneity necessitates a strategy for segmenting and managing customer relationships.…”

“…Energy services provided by local and regional energy companies have several important macro drivers, ranging from national directives and policies, such as the European Energy so far often been limited; and many firms, including energy companies, offering energy services are struggling (Hannon et al, 2013;Pätäri and Sinkkonen, 2014;Suhonen and Okkonen, 2013). Recent findings by Cornelis et al (2015) reveal that some energy service markets are in fact shrinking, such as those in Belgium, Japan, and Sweden.…”