ESCO Industry Growing Rapidly, Consolidating, New Report Finds
ESCO industry revenues from energy services grew by 20 percent per year from 2004 to 2006 and totaled about $3.6 billion in 2006, according to a new report.
ESCO industry revenues from energy services grew by 20 percent per year from 2004 to 2006 and totaled about $3.6 billion in 2006, according to a new report.
The report,
A Survey of the U.S. ESCO Industry Market Growth and Development from 2000 to 2006, was recently released by the Lawrence Berkeley National Laboratory (Berkeley Lab) and the National Association of Energy Service Companies.
Energy efficiency accounted for almost three quarters of the $3.6 billion in revenues (or $2.5 billion/year). 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, according to the report.
The report also finds that a consensus appears to be emerging among many regulators, utilities, legislators, and customers on moving energy efficiency forward as a high-priority resource.
The LBNL-NAESCO survey results are based on survey interviews with 33 of 46 leading ESCOs. Survey results indicate an annual energy services industry growth rate of 20 percent in 2004-06, recapturing the level of growth measured by Berkeley Lab in the 1990s.
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 (about 22 percent per year). The composition of the ESCO industry continues to evolve with significant industry consolidation since 2000. However, a significant number of small, independent ESCOs are active and thriving in local and regional markets, the survey finds.
Related Topics:
