Evolution of the U.S. energy service company industry: Market size and project performance from 1990–2008

Larsen, Peter H.; Goldman, Charles A.; Satchwell, Andrew

doi:10.1016/j.enpol.2012.08.035

Cited by 82 publications

(41 citation statements)

References 15 publications

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“…Okay and Akman [38] indicated that the shared saving model is preferred in developing countries because the host has no financial risk, with the benefit that the debt does not appear on the host's balance sheet. Larsen et al [39] discussed that the guaranteed saving model is more preferable in the public sector in the U.S. due to the greater certainty of savings since the ESCO fully bears the performance risk of proposed ECMs.…”

Section: Mode Of Epc Projectmentioning

confidence: 98%

“…During contract period, certain contractual obligations in relation to an alteration of building premises are imposed on the host. As the median payback period of EPC projects varies from 2 to 10 years, depending on the type and scale of retrofitting [39], a shorter payback period would enable the host to have more flexibility in changing their building premises and operation to suit future business needs.…”

Section: Risks and Concerns On Epc Projectsmentioning

confidence: 99%

“…In the U.S., due to the enactment of EPC related legislation, a special procurement procedure for EPC projects was developed to facilitate the use of EPC in the Federal buildings, and this procurement procedure for EPC projects would prioritize over the current Federal Acquisition Regulation (FAR) procurement requirement if there is a conflict [44]. This move opens up the EPC market in the public sector, and despite the onset of severe economic recession, a market growth of about 7% per year between 2007 and 2010 was recorded in the U.S. ESCO industry [39].…”

Section: Practicality Of Measures To Enhance the Use Of Epcmentioning

confidence: 99%

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Risks in Energy Performance Contracting (EPC) projects

Lee

Lam

Lee

2015

Energy and Buildings

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Section: Mode Of Epc Projectmentioning

confidence: 98%

Section: Risks and Concerns On Epc Projectsmentioning

confidence: 99%

Section: Practicality Of Measures To Enhance the Use Of Epcmentioning

confidence: 99%

See 1 more Smart Citation

Risks in Energy Performance Contracting (EPC) projects

Lee

Lam

Lee

2015

Energy and Buildings

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“…In the United States, roughly 70% of ESCo market revenue comes from municipal, local, and state government facilities; universities/colleges; K-12 schools; and healthcare facilities customers; 15% of ESCo market revenue comes from federal government customers. The remaining 15% is split between commercial/industrial private customers and public housing [32]. Reasons for ESCos' limited penetration in the American industrial market are the high cost of developing projects, the highly customized nature of process improvements and the need for industry-specific expertise limiting access to decision-makers within industrial firms, and difficulty evaluating project success [33].…”

Section: Relationship Of Annual Cost Saving In Terms Of Revamping Costmentioning

confidence: 99%

Empirical Study on Annual Energy-Saving Performance of Energy Performance Contracting in China

2018

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A lack of trust in Energy Service Company (ESCo) is the most critical factor affecting the development of Energy Performance Contracting (EPC) in China, compared with other constraints. One cannot easily estimate the energy-saving performance of an EPC project. Under that condition, lack of trust may cause the Energy-Consuming Unit (ECU) to suspect the energy-saving performance promised by the ESCo, thus leaving potentially profitable projects without necessary funding. Currently, specific studies taking an across-projects viewpoint on annual energy-saving performance of EPC projects in multiple subsectors, objectively and quantitatively, are lacking. This paper studies the regression relationships of annual energy-saving quantity in terms of revamping cost and the regression relationships of annual cost saving in terms of revamping cost. The regression results show that there are statistically significant correlations in the above relationships in the nine subsectors investigated. This is significant for ESCos and ECUs, because knowledge on energy-saving performance could contribute to EPC investment decisions and trust relationships between ESCos and ECUs. Then, a multiple linear regression model of revamping cost is set up to analyze its influencing factors. The model indicates that the subsector the sample belongs to, financing, registered capital of the ESCo, and contract period have significant effects on revamping cost. Thus, policy implications regarding innovation of EE promotion technology, clarifying ESCos' exit mechanism, innovation of financing mechanism, and improving the market credit environment for promoting investment in EPC projects, are provided.

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“…In the United States, roughly 70% of ESCo market revenue comes from municipal, local, and state government facilities; universities/colleges; K-12 schools; and health care facilities customers; 15% of ESCo market revenue comes from federal government customers. The remaining 15% is split between commercial/industrial private customers and public housing [29]. Reasons for ESCos' limited penetration in the American industrial market are the high cost of developing projects, the highly customized nature of process improvements, and the need for industry-specific expertise limiting access to decision-makers within industrial firms and difficulty evaluating project success [30].…”

Section: Relationship Of Revamping Cost In Terms Of Annual Cost Savingmentioning

confidence: 99%

Empirical Study on Annual Energy-Saving Performance of Energy Performance Contracting in China

Ruan¹,

Gao²,

Mao³

2018

Preprint

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Currently, the estimation of annual energy-saving performance of Energy Performance Contracting (EPC) projects is still at the operating level of each individual project, lacking a systematic summary. This paper studies the regression relationships of revamping cost in terms of annual energy-saving quantity and annual cost saving of EPC projects. The regression results show that there are statistically significant correlations in the above relationships in the nine subsectors investigated. These results contribute to EPC investment decisions and trust relationships between Energy Service Companies (ESCos) and energy-consuming units (ECUs). Then a multiple linear regression model of revamping cost is set up to analyze its influencing factors. The model indicates that the subsector the sample belongs to, financing, registered capital of the ESCo, and contract period have significant effects on revamping cost. Finally, advice for promoting investment in EPC projects is given.

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Evolution of the U.S. energy service company industry: Market size and project performance from 1990–2008

Cited by 82 publications

References 15 publications

Risks in Energy Performance Contracting (EPC) projects

Risks in Energy Performance Contracting (EPC) projects

Empirical Study on Annual Energy-Saving Performance of Energy Performance Contracting in China

Empirical Study on Annual Energy-Saving Performance of Energy Performance Contracting in China

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