United States

Technical assistance for the development of an ESCO-based market approach

EXPERTISE : /Start-up assistance to ESCOs
SECTOR : , Public


GEM Inc.

project description

GEM is a leading single-source mechanical and electrical contractor in the US central region. To enhance its value-added service offerings to its customers, GEM Inc. took an interest in developing an energy performance contracting (EPC) scheme to help its clients implement energy efficiency projects.


GEM Inc. mandated Econoler to provide support in developing a strategy on the use of EPC for market development.

To fulfill this mandate, Econoler performed the following services:

Step 1: Identify the objectives and the capacities required for accomplishing them by:

  • Making exchanges regarding the EPC concept and how this concept is to be adapted to meet the needs of GEM Inc.;
  • Understanding the market forces/players’ perception of the proposed new service offerings;
  • Reviewing the assets/resources that can be used and the barriers to be addressed when developing EPC-based offerings for the market;
  • Reaching consensus on how the process for developing an EPC practice should be structured for the subsequent steps.

Step 2: Develop a business plan

  • Identify the key elements to be worked on to develop a business plan, including:
  • The objectives of the ESCO (financial return, a new channel for equipment sales, etc.);
  • A market analysis to define the types of client to be targeted by the EPC approach;
  • The product to be offered (concept, contract, guarantees, financing, etc.);
  • The market strategy to be employed;
  • The operational mechanisms to be implemented (capacities to be developed, human resources needs, etc.);
  • Expected financial benefits to be gained by the initiative; and
  • Risk mitigation strategies.

Step 3: Assess the needs for capacity-building

  • Identify the needs for capacity-building to enable offering EPC-based services in the market.

Step 4: Offer a continuous support for the development of capacities to use the EPC through different business opportunities

With the technical assistance provided by Econoler, GEM Inc. succeeded in developing a strong understanding of the EPC concept and how to develop an appropriate EPC-based strategy for its market operations.

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