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A comprehensive analysis of the North American Energy Management Services (EMS) and ESCO Markets within.  Study includes products and services associated.

Executive Summary

[Published January 2011]

ESCO Definitions

For the purpose of this report, the definition of an ESCO will directly associate with the NAESCO definition, as well as NAESCO’s description of market explanations and history.  An ESCO is a business that develops, installs and finances projects designed to improve energy efficiency and maintenance costs for facilities over a seven to ten year time period. ESCOs generally act as project developers for a wide range of tasks, and assume the technical and performance risk associated with the project.

Services typically offered include the following:

  • Develop, design, and arrange financing for energy efficiency projects;
  • Install and maintain the energy efficient equipment involved;
  • Measure, monitor, and verify the project's energy savings; and
  • Assume the risk that the project will save the amount of energy guaranteed.
  • These services are bundled into the project's cost and are repaid through the dollar savings generated. 

EMS Definitions

There are many facets to the Energy Management Services (EMS) industry. Each aspect of service can be broken down individually or incorporated into an all-inclusive project. As the demand for energy efficiency grows, so does the need for users to optimize their energy usage. EMS companies extend a variety of services to the customer tailored to meet the needs for maximum productivity and guaranteed efficiency.

In order to reduce and control rising energy costs, management and analysis of energy consumption is essential. From lighting upgrades to building new structures, EMS services are extensive. The following are typical services proposed by industry participants:

  • Maintenance and repair of HVAC
  •  Lighting retrofits
  •  Water and Power systems
  •  Temperature control and automation systems
  •  Installation of high efficiency equipment
  •  Metering
  •  Utility consumption analysis
  •  Security Management Solutions

End Users

  • Municipalities, Universities, Schools, Hospitals (MUSH)
  • Federal Government
  • Private Commercial & Industrial 

ESCO Products and Services Analysis

General products and services offered by ESCOs incorporate the following: 

  • Full-service energy audits
  • Lighting retrofits
  • HVAC upgrades
  • UPS and power storage technologies
  • Upgrades on industrial equipment, including motors and controls
  • Back-up power
  • Renewable technology application, including wind, solar and fuel cells
  • Commodity procurement and consulting
  • Demand and load management
  • Facility management
  • On-site heat and power (co-generation) systems 

EMS Products and Services Analysis

Services:  Installation of high efficiency equipment, energy audits, energy information (demand response), commodity procurement, facility commissioning, security management, etc.

Products:  HVAC systems, lighting retrofits, controls systems, on-site power, metering, etc.

Other:  Generators, motors, renewable energy solutions, UPS systems, etc.  

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