ESCO Market Trends: Performance Contracting Under Pressure from Energy as a Service


The ESCO market is facing increasing pressure to respond to changing consumer expectations and competitive landscape associated with emerging turnkey Energy as a Service (EaaS) offerings. On the demand side, clients are becoming more sophisticated in their expectations and look for cost-effective, customized, and comprehensive energy solutions to meet their needs beyond energy efficiency upgrades. On the supply side, energy suppliers and vendors are introducing a broader set of turnkey, portfolio-wide, technical, and financial options to meet emerging customer needs. These new EaaS options transcend the single-site, single-project focus of traditional ESCO performance contracting business models and offer alternative flexible and simpler financing options. This presentation will discuss these trends and outline the expected effect of these changes on performance contracting market size and growth across different customer segments.


Sasha Wedekind

Research Analyst

Navigant Research

Sasha Wedekind is a research analyst contributing to Navigant Research’s Building Innovations pro-gram, where she is focused on energy efficiency and decarbonization in buildings, as well as Energy as a Service. Wedekind specializes in global market analysis and market forecasts for the construction, retrofit, and ongoing operation of more energy efficient and decarbonized buildings. Her areas of focus include energy efficient building technologies, building electrification, sustainable building materials, energy services, and emerging business models.