The emergence of the energy service provider in the eighties has been a spontaneous climb up as it pertains to demand. An energy service company (ESCO) are firms that offers a wide number of energy services like designs and implementation of energy cost savings jobs, retrofitting, energy conservation, energy infrastructure freelancing, power generation and energy supply, and risk assessment. An ESCO is a company that provides broad energy solutions to its clients, such as auditing, redesigning and developing changes to the ways the customer utilizes energy, the primary aim being enhanced efficiency.
The energy service company presently is in continuous flux and forever evolving with new energy service being delivered as the industry develops post COVID-19. Improvements in technologies have added to the industry’s progress as a whole.
It is relatively obscure outside the sector but energy prices and efficiency can be elevated and truth be told that is the central mission for just about any energy providers company. In the 90’s with deregulation we watched the rise of energy service companies then activities slowed during the Obama administration we saw reversals of regulations only to again be deregulated by the current President Donald Trump. Now they’re popular amongst many organizations such as municipalities, school districts, industrial projects and commercial markets.
In 2006 the sector group NAESCO documented energy service companies expanded by 22% and boasted $2.6 billion in revenue marking a paramount moment for energy services companies all over the United States. In Canada the popularity of the energy service company also grew exponentially primarily in the oil full province of Alberta.
There’s quite a few options of energy service providers which include but not limited to: meter testing and proving, fuel flare venting, sampling and analysis, shutdowns and turnarounds, industrial clean-up and lots of other energy services. Honestly we could go on for hours about the specific list of solutions energy service companies offer up.
Consulting and negotiating energy rates is yet another in-demand service as energy management providers have now been appearing throughout North America to fill the demand for cheap prices. Contrary to popular belief energy costs are in truth negotiable and it is energy consulting firms that can help companies see more affordable energy rates. The very first action any energy management firm will undertake is a complete and wide-ranging energy audit in an effort to recognize a starting base line. Developing a documented starting position after a company carries out its energy analysis is vital. The pluses of operating closely with top company directors is that when a judgment must be made its made immediately. That is why energy consultants work along side and report to, business managers. The importance of the working relationship amongst the energy consultant and the organizations officers cannot be downplayed given throughout any energy audit it’s imperative to have management readily available.
Of the plethora of different solutions available, some may include shutdown services, new plant fabrication, fuel flare venting, well services and chemical cleansing to name a few. For the first half of 2020 the world was brought to its knees by a pandemic. The virus has and will forever change the way we do company.
Chief Operating Officer of Sunstar Energy Services Carey Rewerts had this to say…
“Although it is correct that we’re observing a vital change inside of the energy sector after coronavirus, we’re also experiencing the intro of new technology and protocols of how we conduct ourselves while working. Energy service providers is absolutely taking a hit while that being said will re emerge more robust than ever.”
Energy services companies are fundamentally different from consulting engineers and equipment contractors: the former are ordinarily rewarded for their recommendations, whilst the latter are paid for the related equipment, and neither of them accept any work risk.
Energy service professionals understand the complexity of observing government and other regulative recommendations to ensure they can create efficiency, compliancy and cost savings, for no matter what organization they are employed with. The underlying target for anyone in the energy services company will be to attempt to save their clients, in some form or another, with lower energy costs. Now this could mean just making present systems more economical.
Marketing in 2021 post-COVID will also play a pinnacle role in the successes, or failures, of many energy services companies. While there are a large number of ESCOs that are advancing technically in the field, when it comes to online marketing they’re largely ignorant. What do I mean by that? Well for example many of these companies have no clue that Google automatically lists their business inside the world’s large directory called GMB (Google My Business). The problem is that they do it without any authorization from the actual business owner and leave it up to them to claim their own business ownership. Why is that a problem? Simple. A competitor, or anyone for that matter, could claim ownership and make life difficult for the business by responding harshly to reviews left. One company that prides itself in helping with energy marketing is ESM (Energy Services Marketing) a company based in Niagara Falls, Canada.
You’ve more than likely observed that utility organizations have, for sometime now, been bundling service. That’s the evolution of these energy utility providers we earlier talked about. In Canada we frequently see energy providers merging with government so they may further increase their reach with customers such as the primary gas company in Canada named Enbridge, Enbridge has worked diligently to increase their service providers and products to capture even more of the energy consumer market. Fundamentally as this transpires, energy providers grow to be energy service organizations offering a extensive selection of solutions as opposed to concentrating on just supplying it.
So I know what you are thinking. Doesn’t this make energy service providers firms go the way of the dinosaur? Nope. Think of this like the battle of the Titans whereas the big utility providers are the ones who will fight it out for the energy consumer dough. There are a lot of solutions encompassed by the term energy service providers company. Many, if not most, all are tied to laborers working with industrial service providers like those in the oilfields. That being said we hope that 2021 brings much success to the energy sector and we can look back at 2020 as a year of lessons.
For more on energy management consulting visit QuotEnergy!