Energy Service Companies and Energy Performance Contracting: is there a need to renew the business model? Insights from a Delphi study

• The ESCO business model is analysed through a Hamel business model framework.
• Expert opinions on the viability of ESCO business emerged from the Delphi study.
• Terminology on energy services, energy-performance contracting and ESCOs.
• The generally weak knowledge about ESCOs hampers the development of the business.
• The study lays the foundation for studies on ESCOs from a business perspective.

Energy Service Companies have faced strong expectations to capitalise on large but untapped energy-efficiency opportunities, but have fallen short in terms of diffusion. This paper focuses on the viability of a business model based on Energy Performance Contracting. Following a two-round Delphi study conducted in Finland, we analyse the insights provided by the experts through the Hamel business model framework. The main aim is to increase understanding of the model that Energy Service Companies use, and to identify the main factors that hinder their business development. The findings suggest that rather little is known about these companies and their service offerings. The uncertainty surrounding the business affects the customers' readiness to invest their time and resources in the projects. One of the key development needs for the business is thus to put a strong emphasis on both the visible and the invisible benefits.