Can Facilities Management companies be the new Digital ESCOs?

May 13

Over the last few years Facilities Management and Utilities sector companies have been expressing deeper interest in Energy Services.

Whats the motivation to do so?

  • Customer Engagement/Retention Strategy
  • Increased Revenue /Customer (Known avenues)
  • Reduced Operational Costs/ Better Margins (Largely for Facilities Management companies)

There is one major motivation most people are missing out on, because it's largely unknown, and that is to get a share of the “new business” opportunity that the intersection of Energy, Data and Customers (Commercial Buildings) bring.

#EnergyTransition, #SmartCities and some of the other recent advancements are quite funny in a lot of ways. There is a thin line of differentiation (fast being erased) in who is competition and who is not? Addressing grid flexibility issues, alternate #DER markets would become a lucrative market. And thats where things start to get funny.

Are #Utilities a threat of #FacilitiesManagement companies, certainly yes in my opinion, they both are eyeing the same sweet spot, well let that be a surprise that we will unravel during our conversation.

Conventionally #FM companies have tried two ways to get to Energy Service markets:

  • Organically, building own energy services team
  • Inorganically, acquiring other energy services company

I think there is a third one that’s going to be the real game changer, allowing #FM companies to participate in the larger scheme of things and also get rid of all the conventional work, thats where they would be able to increase margins by 2X-3X!


#FacilitiesManagement companies have to become a digital service provider in the entire energy services game, may be “Digital ESCO”.

We have seen things being turned upside down in Insurance, Finance and trust me i see no reason why this would not happen in the energy service and #FM space.

Bold prediction?