Opportunity analysis and go-to-market strategy in energy sector using performance contract business model

Abstract

In recent years, energy efficiency and conservation have become the buzzword all over the world. Government and private companies have started to recognize environment stewardship as one of their most important goals. Energy performance contracting (EPC) is an innovative method practiced in many countries towards reaching the goal of energy efficiency. In this project, we have analyzed the concepts of energy performance contracting (EPC) and the different business models through which it is implemented across the world. We have performed an opportunity analysis of the EPC market in India. We looked at this opportunity both from supplier perspective as well as from customer perspective and arrived at suitable business models, which will become a win-win proposition for all the stakeholders. We explore the opportunity for EPC in India by doing customer analysis, market analysis, environmental analysis and competitor analysis. In this process, we conducted in-depth interviews with couple of target customers representing the segment we are interested. Further, we conducted an energy analysis at a large prospective customer (an IT Company) to identify the areas where energy efficiency projects can be implemented which can provide significant cost savings to the company. We then contacted a leading energy service multinational company to understand their competitive advantages and how they match with the needs of the customer segment we analyzed. Finally, we propose a go to market strategy which could be adopted by ESCOs interested to tap into the huge energy efficiency market in India.