The U.S. Energy Services Company Market

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Feb 06, 2012, 04:16 ET

NEW YORK, Feb. 6, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

The U.S. Energy Services Company Market

http://www.reportlinker.com/p0769057/The-US-Energy-Services-Company-Market.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Energy_&_environment

Energy Performance Contracting and Energy Efficiency for the MUSH, Federal, Industrial, Commercial, and Public Building Markets

The energy service company (ESCO) market for energy efficiency project installations and services exceeded $5.1 billion in 2011. Driven by public policies that encourage a greater emphasis on energy efficiency to reduce costs and improve operations, this market is expected to continue to grow faster than the domestic economy and reach $16 billion in sales by 2020.The majority of ESCO work is conducted for the municipal, universities, schools, and hospitals (MUSH) market – largely for public entities and institutions at the state or local level – which represents about 73% of all ESCO activity. However, the federal market has been highly active in recent years, driven by a presidential executive order that mandates that all federal agencies must achieve a 30% reduction in energy use by 2015, plus spending authorized by the American Recovery and Reinvestment Act of 2009 (ARRA). While the full impact of this economic stimulus spending has yet to be realized, ARRA has directed billions of dollars into energy efficiency projects at all levels of government and to all geographic regions of the nation.This Pike Research report describes the continuing evolution of the ESCO market, detailing drivers and barriers to deeper penetration of energy efficiency in the U.S. economy. The study focuses on the role that performance contracting is playing as a vehicle for financing efficiency projects for public entities that face budget and credit limitations, as well as the convergence of new technologies and service offerings into traditional energy conservation projects. Key industry players are profiled in depth and market forecasts extend through 2020.

Key Questions Addressed:

-What is an ESCO, and who are the major competitors in this market?-How is ESCO market activity divided among major customer segments?-What are the major policies that drive government use of performance contracts?-How has the American Recovery and Reinvestment Act of 2009 affected public sector spending for energy efficiency?-Which technologies are expected to play major roles in future efficiency projects?-What is the current status of Property Assessed Clean Energy (PACE) financing for commercial efficiency projects?

Who needs this report?

- Energy service companies-Energy efficiency technology vendors-Commercial building owners and managers-Federal, state, and municipal government agencies-Utilities-Investor community

Table of Contents

1.1 The ESCO Market

1.2 ESCO Market Activity

2. Market Issues2.1 Defining the ESCO Market2.2 What is an ESCO?2.3 Evolution of the ESCO Market: 1973–20102.3.1 Creation of the ESCO Industry2.3.2 Consolidation: 1990-20052.3.3 Current ESCO Market Structure2.3.4 The Super ESPCs2.3.5 ESCOs in the Army Market2.4 ESCO Industry Segmentation by Players2.4.1 NAESCO Member Categories2.4.1.1 Energy Service Company (ESCO)2.4.1.2 Energy Service Provider (ESP)2.4.1.3 Energy Efficiency Contractor (EEC)2.4.2 Industry Segmentation by Business Model2.4.2.1 Independent ESCOs2.4.2.2 Building Equipment Manufacturers2.4.2.3 Utility Companies2.4.2.4 Architectural and Engineering Companies2.4.3 Consolidation Expected to Continue2.4.3.1 ESCOs Looking for Deals2.4.3.2 Merger Considerations2.4.3.3 Acquisition Risk2.5 Industry Segmentation by Market2.5.1 MUSH Market Segment2.5.1.1 Municipalities and State Government2.5.1.2 K-12 Education2.5.1.3 Colleges and Universities2.5.1.4 Hospitals and Healthcare Facilities2.5.1.5 Correctional Facilities2.5.1.6 Public Housing Districts2.5.2 Common Barriers Faced by the MUSH Market Segment2.5.3 Federal Agencies2.5.4 Public Housing2.5.5 Commercial/Industrial2.6 Contract Mechanisms in the ESCO Industry2.6.1 Energy Savings Performance Contracts (ESPC)2.6.2 Utility Energy Service Contracts (UESC)2.6.3 Power Purchase Agreements (PPA)2.6.4 Enhanced Use Leases (EUL)2.7 Federal Market Issues2.7.1 The Federal Policy Trend2.7.2 Obama Administration Support for Efficiency Projects2.7.3 U.S. Climate Policy2.7.4 ESPC Policy Drivers2.7.4.1 National Energy Conservation Policy Act (NECPA 1986)2.7.4.2 DOE Rule on ESPC Use 10 CFR 436 (1991, etc.)2.7.4.3 Energy Policy Act of 1992 (EPAct 1992)2.7.4.4 Office of Management and Budget Memorandum M-98-13 (1998)2.7.4.5 Executive Order 13123 (1999)2.7.4.6 Energy Policy Act of 2005 (EPAct 2005)2.7.4.7 Executive Order 13423 (2007)2.7.4.8 Energy Independence and Security Act of 2007 (EISA 2007)2.7.4.9 DOE Transformational Energy Action Management Initiative (2007)2.7.4.10 American Recovery and Reinvestment Act of 2009 (ARRA 2009)2.7.4.11 Executive Order 13514 (2009)2.7.4.12 National Defense Authorization Act (NDAA 2011)2.7.4.13 OMB Memorandum M-98-13 (addendum 2011)2.7.4.14 Better Buildings Initiative (2011)2.7.4.15 Other Significant Programs2.7.5 ESPC Reforms2.7.6 Increasing Competition for Financing2.7.7 The 2009 Internal Review2.7.8 Department of Defense Opportunities2.7.8.1 The RAND Report on Army/UESC Collaboration2.7.8.1.1. Benefits for Army Collaboration2.7.8.1.2. Technical Assistance and Information Benefits for Utility Partners2.7.8.1.3. Perceived Barriers to Collaboration2.7.8.1.4. Recommendations to Overcome Barriers2.8 Market Impacts of the American Recovery and Reinvestment Act2.8.1 MUSH Market Impacts of Stimulus2.8.2 ARRA Implementation Difficulties2.8.2.1 ESCO Concerns about Spending Lag2.8.2.2 Inspector General Reviews of EECBG2.8.2.3 Reports to Congress2.8.3 Use of QECBs2.8.3.1 Qualified Projects and Uses2.8.3.2 How They Work2.8.3.3 The QECB Experience to Date2.9 Commercial and Industrial Drivers2.9.1 Property Assessed Clean Energy (PACE) Bonds2.9.2 Benefits for Commercial Property Owners2.9.3 Concerns Quell Momentum2.9.4 Status of Commercial PACE Programs2.9.5 PACE Programs in the Works2.9.6 Legal and Legislative Challenges to FHFA

3. Technology Issues

3.1 Technology Overview

3.2 Typical Energy Efficiency Technologies

3.2.1 Heating

3.2.2 Cooling

3.2.3 Hot Water

3.2.4 HVAC and Lighting Controls

3.2.5 Ambient Comfort

3.2.6 Lighting

3.2.7 Other Technologies and Practices

3.2.7.1 Commissioning

3.2.7.2 Demand Response

3.2.7.3 Renewable Energy

3.2.7.4 Building Energy Management Systems

3.2.7.5 Energy Procurement

3.3 Technologies on the Horizon

3.4 Proving-Ground Technologies

3.4.1 High-R Windows

3.4.2 Wireless Mesh Sensor Network

3.4.3 Magnetic Bearing Compressors

3.4.4 Variable Refrigerant Flow

3.4.5 Variable-Speed Chiller Controls

3.4.6 Condensing Boilers

3.4.7 Low Ambient/Task Lighting

3.4.8 Integrated Daylight Systems (Digital Addressable Lighting Interface, DALI)

3.4.9 Plug Load Reduction Using End-use Monitoring and Dashboards

3.4.10 Photovoltaics (PV) with Solar Water Heating

3.4.11 Commercial Ground-source Heat Pumps

3.4.12 Chilled Beams

3.4.13 Smart Windows

3.5 Putting New Technologies into Practice

3.5.1 GSA Net Zero Building Challenge

3.6 Lighting Technologies

3.6.1 Future Outlook for LEDs

4. Key Industry Players4.1 Energy Service Companies4.1.1 AECOM Energy4.1.2 Ameresco4.1.3 The Benham Companies / SAIC4.1.4 Burns & McDonnell4.1.5 Chevron Energy Solutions4.1.6 Clark Energy Group, LLC4.1.7 ConEdison Solutions4.1.8 Constellation NewEnergy4.1.9 Eaton Corp.4.1.10 Energy Systems Group4.1.11 FPL Energy Services4.1.12 Honeywell Building Solutions4.1.13 Johnson Controls4.1.14 Lockheed Martin Systems and Global Solutions4.1.15 McKinstry4.1.16 NORESCO / United Technologies Corporation / Carrier4.1.17 Onsite Energy Corporation4.1.18 OpTerra Energy Group4.1.19 Pepco Energy Services, Inc.4.1.20 Schneider Electric4.1.21 Siemens4.1.22 Trane, Inc.4.1.23 United Energy4.2 Financial Partners and Advisors4.2.1 Bostonia Partners, LLC4.2.2 Cascadia Capital4.2.3 Clean Energy Fund4.2.4 Dominion Federal4.2.5 FMI Capital Advisors4.2.6 Green Campus Partners4.2.7 Guggenheim Capital Markets4.2.8 Hannon Armstrong4.2.9 United Financial

5. Market Forecasts

5.1 Overview

5.1.1 Reasons for Retrenching

5.1.2 Ratings Woes

5.1.3 Impacts on Market Forecasts

5.2 Energy Costs and Energy Efficiency

5.3 ESCO Market Projections: 2011-2020

5.4 The Federal Market

5.4.1 ESPC in the Pipeline

5.4.2 Better Buildings Initiative

5.4.3 ESCO Revenues by Technology Type

5.4.4 Future Considerations

6. Company Directory

7. Acronym and Abbreviation List

8. Table of Contents

9. Table of Charts and Figures

10. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

ESCO Revenue Segmentation by End Use Market, United States: 2011ESCO Revenues by End Use Market, Aggressive Scenario, United States: 2010-2020ESCO Revenue Segmentation by End Use Market, United States: 2006-2020Uses of QECBs Issued: 2010-2011Regional Use of QECBs to Date: 2011Commercial Lamp Unit Shipments by Technology, North America: 2011-2021Average Retail Rates for Electricity by Sector, United States: 2009-2020ESCO Revenues by End Use Market, Aggressive Scenario, United States: 2010-2020ESCO Segmentation by End Use Market, United States: 2020Average Federal ESPC Project Size, by Contract Amount: 2005-2011Federal ESPCs Awarded and Forecast: 2010-2017ESCO Revenue Segmentation by End Use Market, United States: 2020ESCO Revenue Segmentation by Technology or Project Type, Base Scenario: 2020Federal ESPC Market Share by Contract Size, 2009-2011Schematic of Energy Performance ContractingStatus of Federal Agency Progress Toward Energy Savings Goals: 2010Federal Government ESPC Project Investment by Fiscal Year: 1998-2011Federal Government UESC Investment by Year: FY 1998-2011Federal Facilities Investment in Energy Efficiency Projects: 2003-2010Number of Federal ESPCs Awarded by Region: 2009-2011U.S. Army Engineering and Support Center, Future Investment in ESPC: 2012Property Assessed Clean Energy (PACE) Financing by State: 2012GSA New Zero Pilot Locations (Proposed): 2011Rate of Energy Use, United States: 1980-2035Projections of Potential Efficiency Improvements

List of Tables

ESCO Major Mergers & Acquisitions: 2004-2012ESCO Segmentation by End Use Market, United States: 2006-2020ESCO Revenues, Base Scenario, United States: 2010-2020ESCO Revenues, Aggressive Scenario, United States: 2010-2020ESCO Revenues by End Use Market, Aggressive Scenario, United States: 2010-2020ESCO Revenues by End Use Market, Base Scenario: 2010-2020ESCO Revenue by Technology or Project Type, Base Scenario: 2006-2020ESCO Revenue by Technology or Project Type, Aggressive Scenario: 2006-2020ARRA SEP Funding, as of February 2010ARRA EECBG Funding, as of February 2010QECB Bond Volume Issued and Percentage of Total Allocation, by State: 2011Top Five States, by QECBs Issued, as of February 2011Qualified Energy Conservation Bonds Issued by Quarter: 2010-2011Uses of QECBs IssuedRegional Use of QECBs to Date: 2011Commercial PACE Programs in Effect, United States: March 2011Type of Commercial PACE Projects Funded: March 2011Top 10 Ranking of Underutilized Efficiency TechnologiesTop 5 Federal Agencies in Terms of ESPC Usage: 2009-2011Federal UESC Projects, by Year: 1998-2011Commercial Lamp Unit Shipments by Technology, North America: 2011-2021Commercial Lamp Revenue by Technology, North America: 2011-2020Average Retail Rate for Unbundled Power: 2009-2020Total Federal ESPC Project Investment and Annual Energy SavingsFederal ESPC Contracts Issued, by Region: 2009-2011Federal ESPCs Awarded, United States: 1998-2017Average Project Size, United States: 2005-2011GSA Green Proving Ground TechnologiesLawrence Berkeley National Lab, ESCO Market Survey: 2010