The Potential ESCO Market: Over $320 Billion

Abstract

Even though energy service companies (ESCOs) have around for
well over a decade in the Ll .S; substantial investment opportunity re-
mains . This article presents one approach to estimating this potential.
Energy service companies have traditionally been defined as " ... a
company engaged in developing, installing and financing comprehen-
sive, performance-based projects, typically 7-15 years in duration,
centered around improving the energy efficiency of facilities owned or
operated by customers." (Richard D. Cudahy and Thomas K. Dressen , A
Review of the ESCQ Industry in the United States, prepared for the World
Bank, undated draft, p 12.)
This rather specific definition has been corrupted by man y to in-
clude other activities such as energy marketing and brokering or
op erations and maintenance of customer facilities for power generation,
cogeneration, and electric distribution. "Energy services providers"
should be the preferred terminology for those engaged in energy mar-
keting and brokering at the retail level. Energy producers and
distributors are more proper terms for companies providing tho se func -
tions.