Service Innovation Elements in Energy Service Company (ESCO) Business Model

Abstract

In recent years, Energy Service Company (ESCO) has been vigorously promoted around the world to engage the challenges of energy efficiency and security, as well as the intensification of the sustainable environment management. Since ESCO were launched in 1980s, ESCO has gradually integrated various service innovation elements, may including innovation sources, service value activities and service externalities. This study aims to assess the service innovations and the service package structure within ESCO. The fuzzy analytic hierarchy process (FAHP) is used to resolve the multi-goal problem for achieving our research purposes. That is, this research attempts to reveal the service package structures for the purposes of ESCO with having service innovation elements. The results first show that service value activities is the most important object to the development of service innovations within ESCO, followed by the service externalities and innovation sources. Additionally, selective service package structure would be the more advantageous service package structure utilized in meeting the ESCO goals.