Challenges and Opportunities for ESCOs in UAE and Middle East

Sep 16


Ever since I read about the announcement of Masdar and EDF coming together to form an Energy Service Company (ESCO) with the intent of operating in the Middle East markets and other emerging economies, I’ve been thinking about these points

  • Tier 2/Tier 3 #ESCOs should be happy or worried?
  • If worried, how should they react to it? (Prepare)
  • For all #FacilitiesManagement companies managing different real estate projects of Mubadala, thoughts of additional revenue via #EnergyEfficiency gone? or consolidated?

Answers to the above points quite clearly depends on the overall business model the new ESCO has, but there is a clear path forward for Tier2 and Tier3 ESCOs in the region.

They have to look at embracing technology to improve bottom-line with an immediate effect and then go a step further to differentiate, win better business and hence improve the top-line.

My recent conversations with leadings #ESCOs in the region has indicated that the community is not sure on how to get started with their technology road map. Some common questions they have to internally sort are?

  • Build vs Buy- Buy off the shelf software or develop one in-house or even select a partner that provides the luxury of both options
  • Selecting the right KPIs- Teams aren't sure on what KPIs to put in place to effectively track the benefit of leveraging data and technology. There is a clear interest to move beyond the usual benefits and link them with business KPIs.


Your thoughts?

Best Regards,