Abstract
This report describes the current state of the energy-saving business;
specifically, we are presenting research results and analysis, based on an
energy-saving and efficiency improvement business study of both the power
companies and the Energy Service Companies, or the ESCOs.
Power companies in the U.S. are facing fierce competition due to the
deregulation of the electrical power market. We tend to think that if the
power companies pursue energy-saving policies, it will be akin to putting a
noose around their own neck. However, in the situation where an energy crunch
exists, rather than investing in a new power generation plant or buying
electricity from far away, lowering the power load could be a better solution.
Also, if launching new programs for energy efficiency improvement or
encouraging use of renewable energy at the state level is thought to be
necessary, it is easy to assume the power companies might calculate and
conclude that by promoting energy savings, capital investment could be less.
Meanwhile, private sector, for-profit ESCOs -- whose purpose is aiming for the
highest revenue -- have established a profit model, and money-making
structure, based on past accomplishments. Total energy-saving business revenue
for the fourteen ESCOs we studied in this research project was 6, 410 million
dollars; eleven ESCOs were profitable, one ESCO suffered a loss, and two ESCOs
had results that were unclear. While the vitality of the ESCO business seemed
to be on the decline, based on the research findings, we came to the powerful
realization and conclusion that the ESCO business is still quite healthy.
This report accurately portrays the U.S. energy-saving business by presenting
the power company' s and the ESCO' s approaches, with actual examples to help
the reader. We would be most happy if this report helps your business.
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