IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2018-01-10.html
   My bibliography  Save this article

Strategies for Development of Energy Services Companies in Iran

Author

Listed:
  • Hamed Houri Jafari

    (Institute for International Energy Studies, Tehran, Iran.)

Abstract

During the recent decades, Energy Services Companies (ESCOs) have played an important role in energy management and building an appropriate tool for performing energy policies, especially in the case of existence of energy saving potentials in the energy system. These companies have been established in Iran as well and are running now due to the crucial need to energy efficiency improvement in the country. Since extending the markets and activities of these companies needs legislative infrastructures and governmental support, the matter is that how they should be reinforced with these facilities in Iran in order to be involved in energy optimization projects in the post-sanction situation. In this study, ESCO mechanism development strategies in interacting with its internal and external environment are represented. For this purpose, an analytical method based on the identification and evaluation of weaknesses and strengths as well as threats and opportunities of this mechanism is used due to advance the performance of this industry. The obtained results from the evaluation of ESCO mechanism development show the higher scores for external factors in comparison with the internal ones. The SWOT analysis indicates that the appropriate strategy for developing ESCO mechanism in Iran is WO strategy. According to this strategy, the goal of ESCO industry is to reduce weaknesses and to increase opportunities.

Suggested Citation

  • Hamed Houri Jafari, 2018. "Strategies for Development of Energy Services Companies in Iran," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 82-89.
  • Handle: RePEc:eco:journ2:2018-01-10
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/5994/3503
    Download Restriction: no

    File URL: https://www.econjournals.com/index.php/ijeep/article/view/5994/3503
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hannon, Matthew J. & Bolton, Ronan, 2015. "UK Local Authority engagement with the Energy Service Company (ESCo) model: Key characteristics, benefits, limitations and considerations," Energy Policy, Elsevier, vol. 78(C), pages 198-212.
    2. Fang, Wen Shwo & Miller, Stephen M. & Yeh, Chih-Chuan, 2012. "The effect of ESCOs on energy use," Energy Policy, Elsevier, vol. 51(C), pages 558-568.
    3. Vine, Edward, 2005. "An international survey of the energy service company (ESCO) industry," Energy Policy, Elsevier, vol. 33(5), pages 691-704, March.
    4. Larsen, Peter H. & Goldman, Charles A. & Satchwell, Andrew, 2012. "Evolution of the U.S. energy service company industry: Market size and project performance from 1990–2008," Energy Policy, Elsevier, vol. 50(C), pages 802-820.
    5. Bertoldi, Paolo & Rezessy, Silvia & Vine, Edward, 2006. "Energy service companies in European countries: Current status and a strategy to foster their development," Energy Policy, Elsevier, vol. 34(14), pages 1818-1832, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammed Issa Shahateet & Mohammed Khazali & Ghani Albaali & Nadia Sweis & Abdul Ghafoor Saidi, 2021. "Barriers to Improving Energy Efficiency: Insights from Energy Services Companies in Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 155-164.
    2. John William Grimaldo Guerrero & Andr s David Rodr guez Toscano & Lucelys Vidal Pacheco & Jos Osorio Tovar, 2018. "Analysis of the Energetic and Productive Effects Derived by the Installation of a Conveyor Belt in the Metal-mechanic Industry," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 196-201.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wenjie Zhang & Hongping Yuan, 2019. "A Bibliometric Analysis of Energy Performance Contracting Research from 2008 to 2018," Sustainability, MDPI, vol. 11(13), pages 1-23, June.
    2. Wenjie Zhang & Hongping Yuan, 2019. "Promoting Energy Performance Contracting for Achieving Urban Sustainability: What is the Research Trend?," Energies, MDPI, vol. 12(8), pages 1-18, April.
    3. Bertoldi, Paolo & Boza-Kiss, Benigna, 2017. "Analysis of barriers and drivers for the development of the ESCO markets in Europe," Energy Policy, Elsevier, vol. 107(C), pages 345-355.
    4. Pei-Chien Lin & Ming-Feng Hung, 2016. "The Effect of Energy Service Companies on Energy Use in Selected Developing Countries: A Synthetic Control Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 335-348.
    5. Akman, Ugur & Okay, Esin & Okay, Nesrin, 2013. "Current snapshot of the Turkish ESCO market," Energy Policy, Elsevier, vol. 60(C), pages 106-115.
    6. Cagno, Enrico & Franzò, Simone & Storoni, Elena & Trianni, Andrea, 2022. "A characterisation framework of energy services offered by energy service companies," Applied Energy, Elsevier, vol. 324(C).
    7. Nolden, Colin & Sorrell, Steve & Polzin, Friedemann, 2016. "Catalysing the energy service market: The role of intermediaries," Energy Policy, Elsevier, vol. 98(C), pages 420-430.
    8. Helms, Thorsten, 2016. "Asset transformation and the challenges to servitize a utility business model," Energy Policy, Elsevier, vol. 91(C), pages 98-112.
    9. Kangas, Hanna-Liisa & Lazarevic, David & Kivimaa, Paula, 2018. "Technical skills, disinterest and non-functional regulation: Barriers to building energy efficiency in Finland viewed by energy service companies," Energy Policy, Elsevier, vol. 114(C), pages 63-76.
    10. Töppel, Jannick & Tränkler, Timm, 2019. "Modeling energy efficiency insurances and energy performance contracts for a quantitative comparison of risk mitigation potential," Energy Economics, Elsevier, vol. 80(C), pages 842-859.
    11. Mohammed Issa Shahateet & Mohammed Khazali & Ghani Albaali & Nadia Sweis & Abdul Ghafoor Saidi, 2021. "Barriers to Improving Energy Efficiency: Insights from Energy Services Companies in Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 155-164.
    12. Polzin, Friedemann & von Flotow, Paschen & Nolden, Colin, 2016. "What encourages local authorities to engage with energy performance contracting for retrofitting? Evidence from German municipalities," Energy Policy, Elsevier, vol. 94(C), pages 317-330.
    13. Hyein Yi & Sanghyo Lee & Jaejun Kim, 2017. "An ESCO Business Model Using CER for Buildings’ Energy Retrofit," Sustainability, MDPI, vol. 9(4), pages 1-21, April.
    14. Athena Piterou & Anne‐Marie Coles, 2021. "A review of business models for decentralised renewable energy projects," Business Strategy and the Environment, Wiley Blackwell, vol. 30(3), pages 1468-1480, March.
    15. Carvallo, Juan Pablo & Murphy, Sean P. & Stuart, Elizabeth & Larsen, Peter H. & Goldman, Charles, 2019. "Evaluating project level investment trends for the U.S. ESCO industry: 1990–2017," Energy Policy, Elsevier, vol. 130(C), pages 139-161.
    16. Zhang, Mingshun & Wang, Mujie & Jin, Wei & Xia-Bauer, Chun, 2018. "Managing energy efficiency of buildings in China: A survey of energy performance contracting (EPC) in building sector," Energy Policy, Elsevier, vol. 114(C), pages 13-21.
    17. Nurcahyanto, & Simsek, Yeliz & Urmee, Tania, 2020. "Opportunities and challenges of energy service companies to promote energy efficiency programs in Indonesia," Energy, Elsevier, vol. 205(C).
    18. Pantaleo, Antonio & Candelise, Chiara & Bauen, Ausilio & Shah, Nilay, 2014. "ESCO business models for biomass heating and CHP: Profitability of ESCO operations in Italy and key factors assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 237-253.
    19. Stuart, Elizabeth & Larsen, Peter H. & Goldman, Charles A. & Gilligan, Donald, 2014. "A method to estimate the size and remaining market potential of the U.S. ESCO (energy service company) industry," Energy, Elsevier, vol. 77(C), pages 362-371.
    20. Hall, Stephen & Roelich, Katy, 2016. "Business model innovation in electricity supply markets: The role of complex value in the United Kingdom," Energy Policy, Elsevier, vol. 92(C), pages 286-298.

    More about this item

    Keywords

    Strategy; Energy Services Company; Internal and External Factors; strengths; weaknesses; opportunities and threats Analysis;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2018-01-10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.