The National Association of Energy Service Companies (NAESCO) developed an accreditation program in 1996 to help public agencies identify the most qualified Energy Service Companies (ESCOs). Energy Savings Performance Contracts (ESPC) are a critical tool used by public agencies to achieve their much-needed infrastructure goals. In connection with the NAESCO accreditation, a public agency can choose a best value, long-term partner. NAESCO’s accreditation process is the most rigorous in the country, and features:
EXPERT-INDEPENDENT OVERSIGHT
An Accreditation Committee that consists of independent industry experts not affiliated with any ESCO:
- ESPC experts from Lawrence Berkeley National Laboratory (LBNL)
- An engineer with 20+ years of experience as an owner’s representative on ESPC projects
- Lawyers with extensive experience representing state energy offices, utilities, and the types of organizations that are typical ESCO customers
TECHNICAL REVIEW
Rigorous, confidential examination of the ESCO’s technical competence, financial capability, project economics, project analysis documents, project contract documents, project savings monitoring and verification, and business practices to determine that they meet national standards for high quality.
DATA-DRIVEN ASSESSMENT
Extensive data collection from a representative sample of ESPC projects (10-30, depending on the size of the ESCO), using a data collection and storage system designed and operated by LBNL that houses 7,000+ projects, which federal and state policymakers reference to understand and improve ESPCs.
CLIENT VALIDATION
Multiple ESCO customer interviews to determine whether the ESCO delivered each project on time and competently and whether the project is producing the projected savings.
Accreditation Categories
NAESCO offers three categories of Accreditation for companies in the energy service business: Energy Service Company (ESCO), Energy Service Provider (ESP) and Energy Efficiency Contractor (EEC).
Energy Service Provider (ESP) vs. Energy Service Company (ESCO)
Companies accredited as an ESP or ESCO offer performance-based contracts (i.e., contracts that tie the compensation of the provider to the energy savings generated by the project) as a significant part of their business. They also provide the full range of services required for a comprehensive infrastructure modernization project, including energy audits, design engineering, project financing, construction management, commissioning, operations and maintenance, and savings verification. The difference between the two categories is that ESPs offer energy supply options. These options could include the development and implementation of build/own/operate distributed generation, cogeneration or combined heat and power (CHP) projects and arrangement of firm contracting of energy supply.
Energy Efficiency Contractor (EEC)
EECs offer some, but not all, of the services of an ESCO (see above). EECs typically concentrate on one energy efficiency measure (e.g., lighting) or one type of service (e.g., engineering or project management), but can offer multiple measures or services. EECs typically work as subcontractors to ESCOs or ESPs.