Selecting International Performance Contracting Opportunities

Abstract

With the approach of retail wheeling, subsequent price volatility and
more than a little utility confusion on the horizon, it is a great time to pose
the question; why not reach out and become an international ESCO ?
There are lots of countries that could certainly benefit from the
introduction of performance contracting and the establishment of full
service energy service companies. ESCOs from a number of countries are
already "testing the waters" around the world . British, German , Austrian,
French, and Australian companies, and probably others, are looking for
business in areas far from home.
There is no question that international markets can be very favorable
targets for an ESCO that is ready to broaden its market base. There is a long
list of developing countries: the Central and Eastern European nations, the
new nations that once formed the Soviet Union, the "awakening giants" like
China, Indonesia and India .. .all ought to be good opportunities for a
growing ESCO to plant the flag of performance contracting ...but are they?
The answer is yes .. .but.
Unfortunately , not all international markets offer a real opportunity.
Selecting and evaluating a "target" country is the first, and possibly the
most important task facing any firm considering international activity.
There is no "one size fits all" checklist to use in the evaluation of a
potential target country. Over the years we have, through trial and error,
developed a broad protocol, which goes a very long way toward assembling
the data needed to make a reasonably sound decision. No list can remove
all the risks, but our protocol removes many of the risks resulting from
wrong assumptions.