In today’s world, efficient energy management has become a priority for governments, companies and individuals. Energy Service Companies (ESCOs) play a pivotal role in this field, offering advanced digital solutions to monitor and manage energy consumption, both in the private sector and for public administration. Let’s take a look at a some of them, from artificial intelligence to blockchain.

In a world faced with the challenge of reducing emissions and limiting energy consumption, Energy Service Companies (ESCOs) have emerged over the last few years as key players, offering their customers integrated services that range from diagnosis to implementation and financing of energy projects. According to the report Electric Service Companies (ESCOs) Market Research, 2032, the global market for ESCOs, valued at USD 30.2 billion in 2022, is destined to grow to reach USD 59.8 billion by 2032. This increase represents a compound annual growth rate (CAGR) of 7.2%.

The central role of ESCOs has been greatly enhanced by the adoption of digital solutions. ESCOs are making use of technologies such as artificial intelligence (AI) and more specifically machine learning(ML), as tools that can analyse the enormous quantity of data received from sensors, smart meters and monitoring systems. These technologies can identify inefficient energy consumption models, that would be difficult to detect manually, and predict consumption peaks through the use of complex predictive algorithms such as deep neural networks and supervised learning models. ESCOs use these predictions to optimise energy consumption, reducing costs and improving operating efficiency in industrial plants and HVAC (Heating, Ventilation, and Air Conditioning) systems. For example, a HVAC system can be optimised by real-time temperature and ventilation regulation, to respond to climatic variations and the presence of people, thus minimising downtime and maximising energy efficiency.

Another significant trend is the adoption of cloud-based energy management platforms that allow ESCOs to monitor and manage energy consumption in real-time from any location, using a centralised network that is accessible remotely. These platforms aggregate and present data from a variety of sources, in an easy-to-analyse and unified format, including IoT (Internet of Things) sensors, smart meters and SCADA (Supervisory Control and Data Acquisition) systems, i.e. the software and hardware systems used for monitoring and controlling industrial processes and critical infrastructure. These systems are widely used in sectors such as energy and waste water treatment.

Cloud management also offers the possibility to easily integrate new technologies and make software updates without the need of physical intervention, thereby increasing flexibility and speed of response to customers’ needs. One practical example is the use of these platforms for optimising energy consumption in commercial buildings. Data collected in real time can be used to automatically regulate lighting and climate control systems, reducing operating costs and improving energy efficiency.

In the energy sector, blockchain technology is gaining ground thanks to its ability to guarantee traceability and transparency in energy transactions. ESCOs use blockchain to create a record of energy transactions, facilitating the management of renewable energy and guarantees of origin, such as the Renewable Energy Certificate (REC). These records make it possible to track the origin and amount of energy produced and consumed, ensuring that the renewable energy is actually used and accounted for. In addition, blockchain facilitates the implementation of smart contracts, which automate energy trading, and the management of microgrids, improving operating efficiency and reducing administrative costs. One application concerns the management of a microgrid in an energy community, where smart contracts automatically regulate the distribution of energy produced by solar panels among the various members of the community, ensuring a fair and transparent distribution.

ESCOs don’t just serve the private sector. Public administrations are among the main beneficiaries of ESCO solutions, especially with regard to the optimisation of energy consumption for street lighting and state-owned buildings. Public street lighting is one of the most important areas of intervention, and not only for the quality of light and road safety. These solutions can include the installation of high-efficiency LED lighting systems that dramatically reduce consumption compared to traditional technologies. Furthermore, ESCOs can implement adaptive and advanced control systems, like movement and light sensors that automatically regulate lighting intensity based on the environmental conditions and pedestrian traffic. This not only optimises energy use, but also prolongs the useful life of the systems.

The services for public administration are not limited to street lighting, but also include targeted solutions for monitoring and reducing energy consumption in public buildings. This is an aspect of fundamental importance, particular after the entry into force of the Energy Performance of Buildings Directive, (EPBD). From the 1st January 2028, new publicly owned buildings in the European Union, whether residential or non-residential, will not be permitted to generate emissions from fossil fuels on site. This rule will extend to all other new buildings from 1 January 2030, with the possibility of specific exemptions. The revised directive also introduces new measures aimed at gradually eliminating the use of fossil fuels for heating buildings, favouring widespread adoption of solar systems, according to the specific national circumstances.

Once again, advanced big data analysis offers ESCOs the opportunity to use a vast quantity of data to improve energy planning. This process makes it possible to predict future consumption, model energy requirements, identify inefficiencies and implement targeted, corrective solutions. In addition, it supports the optimisation of energy generation and distribution, especially in complex energy networks, improving the overall management of energy resources. For example, the use of machine learning techniques for analysing historic consumption data and weather forecasts enables ESCOs to optimise energy production from renewable sources, such as solar and wind, ensuring energy availability when and where most needed and reducing use of fossil fuels and carbon emissions.