ESCOs see growing revenue streams

According to Pike Research, revenues for U.S. Energy Service Companies (ESCO) could reach $16 billion by 2020, thanks to new service offerings such as demand response and energy management software, enabled by intelligent metering and control systems. Public policy encouraging energy efficiency and federal stimulus funds are expected to drive this market.

ESCOs have been around for 30 years, but continue to respond to business opportunities and economic trends. In 2011 alone, ESCO energy-efficiency project installations and services were more than $5.1 billion, according to Pike.

"The full impact of recent federal stimulus funding has yet to be realized," said Pike Research Analyst Brittany Gibson. "But the American Recovery and Reinvestment Act of 2009 has directed billions of dollars into energy efficiency projects at all levels of government and in all geographic regions of the nation, driving increased investment and accelerating innovation among ESCOs."

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