National Association of energy Service companies NAESco

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established over 20 years ago, the National Association of Energy Service Companies (NAESCO) is a trade organization that encourages the widespread use of energy efficiency. On behalf of its members, NAESCO, based in Washington, D.C., attempts to open new markets for energy services. To reach this aim, the association promotes the importance of demand reduction to customers through seminars, workshops, training programs, and publication of case studies and guidebooks. As its chairm Buddy Hahs put it, "NAESCO's mission [is] to build market opportunities by encouraging customers and policy makers to rely on energy efficiency as the first energy priority. NAESCO has taken a leading role in establishing industry best practices and supporting its membership in the creation of tangible economic value." As an association interested in promoting energy efficiency, NAESCO is committed to fight against global warming and strongly supports the implementation of legislation limiting greenhouse gas emissions. Its representatives have been heard as witnesses in Senate committees dealing with the impact of global warming on the U.S. economy.

NAESCO wants to play a major role in devising innovative policies for a changing marketplace. It represents the various parts of the energy services industry and advocates for the cost-effective supply of inclusive energy services to all types of customers. In order to promote industry quality, NAESCO has organized a meticulous endorsement program for ESCOs (Energy Service Providers and Energy Efficiency Contractors) to identify capabilities and experience. The Association has the ambition to gather the broadest spectrum of market participants in the energy industry. Its membership includes about 75 companies that deliver over $4 billion of energy efficiency, renewable energy, and distributed generation projects across the United States every year. NAESCO also tries to go beyond American national boundaries, acting as a forum for energy service-providers from around the world on how to facilitate market opportunities. The association has members in Israel, China, and Mexico.

Far from believing that legislation on energy efficiency and greenhouse gas limitation will cause the U.S.

economy to slow down, NAESCO holds that energy efficiency can contribute to industrial competitiveness and employment growth. It believes that investments in energy-efficiency schemes will result in the creation of new job opportunities. In addition, institutions, such as schools, will be able to hire new staff thanks to the energetic savings. NAESCO also counters the line of reasoning claiming that the new jobs in energy efficiency will simply be replacements for jobs lost in energy production and distribution. According to the testimony of Donald D. Gilligan, NAESCO's President, before the Senate Committee on Environment and Public Works, in September 2007, the marginal job losses caused by energy-efficiency programs are largely going to be overseas. Gilligan argued that the United States is dependent on foreign sources for oil supply and for Liquefied Natural Gas for fuel used for heating and electrical generation.

He identified this dependency as a drain on American economy and a threat to national security. So reducing this dependency would benefit the whole country. Citing the National Action Plan for Energy Efficiency, Gilligan found that a national effort by utilities to invest about $7 billion a year in energy efficiency would leverage an additional $20-30 million of nonutility investment, which, in turn, would yield annual savings to consumers of about $22 billion in 2017, or a net present value of about $344 billion. Based on three different studies of job creation effects, Gilligan made a mid-point estimate, identifying the jobs created under the investment levels envisioned by the National Action Plan at about 298,000. The adoption of a large-scale energy-efficiency program would not entail a drastic reduction of energy-producing plants. In addition, the adoption of such scheme does not mean the discharge of skilled trade workers who are employed to build and maintain electric power plants and transmission and distribution systems. Finally, new job opportunities can be created by the research needs of the new energy production and generation technologies (widespread renewables, clean coal, nuclear fuel, oil from shale or tar sands). In conclusion, NAESCO believes that a major national commitment to energy efficiency and to greenhouse gas limitation, the cornerstones of all green initiatives, will create hundreds of thousands of high-skill, high-wage jobs, providing a substantial boost to the American national economy.

SEE ALSo: Energy; Energy, Renewable; Nuclear Power.

bibliography. William L. Leffler and Martin S. Raymond,

Oil & Gas Production in Nontechnical Language (Penn Well Corporation, October 2005); National Association of Energy Service Companies, www.naesco.org (cited November 2007).

LuCA PRONO University of Nottingham

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