ESCO Planning and Startup Services

One of AEG’s off-shore clients recognized the need to promote energy efficiency and power quality to its customers in a pro-active manner in the marketplace.  AEG was engaged to undertake a market assessment followed by the development of a business plan for a subsidiary energy service company that would address these goals. 

In-person surveys and telephone surveys were conducted in the residential and small commercial customer sectors, while in-person interviews were conducted among the largest customers.  Estimates of high efficiency equipment saturation were developed, as well as identification of the most likely mix of equipment that would be financially attractive to the various classes of customers.

With a growing saturation of PCs and servers, an additional assessment was made of customer interest in power quality protection equipment.  Customer interest in surge suppression devices, together with uninterrupted power supplies was measured. 

At the conclusion of the market assessment, a business plan was prepared in conjunction with the client that outlined the anticipated costs for establishing the business, the product lines and services that would be offered, the potential profitability by customer class and an organization structure to take the concept from plan to fruition.  AEG provided all the necessary management of the new company for its first two years of operation, and was responsible for marketing, trade ally relations and project management.  The subsidiary company that was formed as a result of this study has been operating successfully for the last eight years. 

Initial sales and marketing efforts focused on providing residential customers with surge protection equipment on a leased basis.  Each major commercial customer was offered a complete energy master plan for the facility that described the present state of energy efficiency at the facility, as well as energy efficient modifications that could be undertaken in refrigeration, HVAC, lighting, motors, standby generation  and process equipment.  Not to be confused with an energy audit, these plans laid out a structure for the complete retrofit of the building regardless of the energy source being evaluated. 

These master plans served as the basis for the establishment of continuing relationships and between the utility and the customer. 

The unique aspect of this ESCO was that it drove the energy efficiency evaluation activity, as well as the marketing direction, but also, once receiving a commitment to move forward with some or all of the recommendations, the ESCO then utilized local trade allies to perform the work.  The ESCO provided the project management and assumed responsibility for all work performed.  This mode of operation served the needs of both the community and the ESCO’s parent company. 

Since its inception, the ESCO has grown in size and has branched out into major HVAC and electrical project work, security, fire and energy management system sales and installation, and supplying owner’s-engineer services for major projects throughout its territory.