Historical Performance of the U.S. ESCO Industry: Results from the NAESCO Project Database

This study draws upon a database of ~800 projects that have been developed by U.S. Energy Service Companies (ESCOs). These projects represent a cumulative investment of ~$1.4 billion in energy-efficiency projects and is the most comprehensive historical "snapshot" of the ESCO industry that is publicly available. We provide information on the geographic distribution of ESCO projects, analyze project development activity by ESCOs over time and in various market segments, and analyze estimated vs. actual, verified energy savings. We also summarize key project characteristics in various market sectors (e.g., project cost, floor area) and discuss the extent to which ESCOs relied on different types of utility programs in developing these projects. We also comment upon some of the major policy implications from the study: (1) markets with significant private sector energy efficiency activity, and (2) the relationship between trends in private sector activity and public purpose or ratepayer-funded programs.