ESCO evolution
Born out of demand-side management programs, energy service companies (ESCOs) are coming into their own, promising energy savings, high return, and even stiff competition in energy markets. For electric utilities, energy service companies offer tantalizing potential as sources of nonregulated revenue, ways to maintain demand-side management programs while reducing customer rates, even ways to build load growth. In short, a means toward gaining a competitive edge. But as with any potentially profitable idea, there`s plenty of risk involved. An ESCO typically provides energy efficiency improvements for utility customers - usually industrial, institutional or commercial customers, although a number of ESCOs specialize in residential energy efficiency retrofits. The typical package of services includes analyzing the customer`s needs, designing equipment modifications or replacements, installing the new equipment, and usually monitoring and maintaining the improvements. In a very real way, the ESCO bundles energy services for profit.
- OSTI ID:
- 81801
- Journal Information:
- Electric Perspectives, Journal Name: Electric Perspectives Journal Issue: 3 Vol. 20; ISSN ELPED9; ISSN 0364-474X
- Country of Publication:
- United States
- Language:
- English
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