The North American Energy Service Company (ESCO) Market

An Atlas Energy Intelligence Market Study
June 2021

Executive Summary

As large energy users face new challenges and opportunities presented by the energy transition ,
they are increasingly enlisting the help of qualified energy solutions partners to transform the
way they approach energy infrastructure. With an intensified focus on managing energy costs,
reducing carbon emissions, and boosting resiliency in order to maintain smooth operations through
major weather events and grid outages, large organizations are finding that energy service
companies [ESCOs]. which deliver comprehensive energy solutions through energy savings performance
contracts [ESPCs) and other contracting vehicles, can address many of their key objectives around
energy through self-funding, budget-neutral means .

ESCOs have delivered energy projects for a wide range of customers in North America since the
1970s, using the energy savings achieved through energy efficiency retrofits to finance the capital
costs of the project. In recent years, many ESCOs have expanded the model to include technologies
such as solar PV, energy storage, LED streetlight retrofits, water advanced metering infrastructure
[AMI) replacements, and others that enable large energy users to reduce costs and improve outcomes
around sustainability and reliability. In the future, ESCOs will likely play an important role in
developing clean energy infrastructure as pressure mounts on government agencies to take action on
climate change and support economic rebuilding efforts in the wake of the COVID-19 pandemic.

The competitive landscape in the North American ESCO market is concentrated in about ten players
who collectively represent over 70% of the market. Companies such as Ameresco, Johnson Controls,
NORESCO, Siemens, Energy Systems Group [ESG]. and Honeywell have a national presence in the U.S.
across a wide range of sectors including the federal government, the municipal, university,
schools, and healthcare [MUSH) sector, and others. As energy and infrastructure projects become
more complex and entail integration of diverse energy technologies and grid-responsive solutions,
ESCOs with deep expertise in the market and the ability to scale to address diverse customer
challenges will be best positioned for

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Johnson Controls Partners with Interior Health to Support Environmental Stewardship and Sustainability in British Columbia

  • Regional hospital to reduce greenhouse gas emissions by 23.5 percent
  • Energy Performance Contract (EPC) allows for infrastructure and equipment upgrades, which are compensated through guaranteed utility and operational savings
  • Project supports the economic prosperity of British Columbia

MILWAUKEE (November 6, 2020) – Johnson Controls, a global leader for smart and sustainable buildings, and the architect of OpenBlue connected solutions, has partnered with Canadian healthcare provider, Interior Health to announce their initiative to improve infrastructure at East Kootenay Regional Hospital in Cranbrook, British Columbia. Enabled by an Energy Performance Contract (EPC), Johnson Controls will install and service energy-efficient solutions to reduce the hospital’s greenhouse gas (GHG) emissions by 23.5 percent over the 15.6-year payback agreement, while also addressing its aging systems.

Upgrades contribute to regional sustainability initiative

This partnership supports British Columbia’s CleanBC plan to reduce GHG emissions and expand the clean energy industry. Selected for its experience in sustainable and renewable energy solutions, Johnson Controls will extend East Kootenay Regional Hospital’s green initiative by maximizing cost savings while maintaining a comfortable and healthy environment for patients and staff. The project’s sustainable implementations include:

  • LED lighting
  • Occupancy controls
  • Solar walls
  • Pre- Heating remediation
  • Retro-commissioning
  • Building envelope updates
  • Demand Control Ventilation Upgrades
  • Conversion to Variable Air Volume systems

“Our deep experience with Energy Performance Contracts allows us to align our solutions and services to Interior Health’s energy-saving mission,” said Andrew Nartey, Performance Infrastructure™ account executive at Johnson Controls. “Making strategic infrastructure improvements will not only save valuable dollars in energy savings but also contribute to better patient experiences and outcomes.”

In addition to the EPC, East Kootenay Regional Hospital received $210,000 in grant funding, approved by Fortis BC and BC Hydro. Since integrating into the BC Hydro Energy Management Program in 2008, Interior Health developed a Strategic Energy Management Plan in its portfolio for reducing energy usage and emissions. As the project’s energy partner, Johnson Controls experts will continue to work with Interior Health and hospital administrators throughout the contract to ensure energy and emission targets are being met.

“These enhancements will allow Interior Health to continue to reduce greenhouse gas emissions while addressing operational needs and improving patient care at East Kootenay Regional Hospital,” said Lorne Sisley, Corporate Director, Facilities Management & Operations at Interior Health. “By working with Johnson Controls and local partners, this project will help create more job opportunities and support the local economy while contributing to the overall health of the community. It’s important to us to support CleanBC initiatives and work together in partnership for new and creative ways to reduce GHGs.”

In keeping with health and safety guidelines during the COVID-19 pandemic, Johnson Controls and leaders at Interior Health utilized video communication tools to develop and finalize the partnership. At the same time, safe social distancing is a top priority during the project to keep all workers safe.

Johnson Controls has a long history of working with healthcare facilities throughout North America to create environments that inspire and engage both patients and caregivers. Through Performance Infrastructure™ projects, we have helped 321 health care facilities modernize equipment and building systems, improve infrastructure and energy spend, and address on-going maintenance needs.

Media Contacts:

Anne Lines

Matter on behalf of Johnson Controls

Work + 1 978-518-4512

JCI@matternow.com

Ryan Nolan

Global Public Relations Program Manager

Building Technologies & Solutions, Johnson Controls

Work + 1 414 524 6170

Mobile + 1 414 378 9641

Ryan.P.Nolan@jci.com