Worcester Business Journal

www.wbjournal.com • Worcester Business Journal • 2016 Central Mass By The Numbers 43 Energy & Transportation F ramingham energy services firm Ameresco has secured several multi-million contracts this year with a $72-million contract with the U.S. Environmental Protection Agency in July, a $53-million federal prison contract in September and a $20-million energy effi- ciency deal with Roxbury Community College in October. In the second quarter, the company reported $162 million in revenue, which was a 7 percent increase over the the second quarter in 2015, although the company's earnings of $2 million remained flat, year-over-year. Ameresco President and CEO George Sakellaris spoke about his company's role in the green economy and how new efforts will lead to long-term rewards. Are you still seeing growth in the energy efficiency sector? Yes. Energy efficiency makes very good economic sense for customers, and there is tremendous untapped potential. With aging infrastructure and con- strained budgets, we expect to see con- tinued demand for budget-neutral ener- gy solutions for years to come. Efficiency is the greatest and the most compelling global resource, and Ameresco focuses on deploying it to maximize energy use from all resources, including renewables. We see our projects getting increasingly larger and more complex, and we're inte- grating more advanced and sophisticated technologies to affect more resources, and to drive additional savings for our customers. What are organizations looking for when they contract with Ameresco? Organizations are looking for cost- savings, infrastructure upgrades, solu- tions to reduce their operations and maintenance costs, and to meet their sustainability goals. As the leading independent energy services provider, organizations seek Ameresco for our solid technical team, energy experience and expertise, and innovative solutions. Ameresco is a one-stop shop. We provide comprehensive and fully-inte- grated energy efficiency and renewable energy solutions. We also assist our customers in securing low-cost financ- ing and financing their upgrades through savings. We save money for our clients by delivering customer-focused, value-add- ed energy efficient and renewable energy solutions to meet their unique require- ments and sustainability objectives. Because of Ameresco's independence, we're technology agnostic, and we pro- vide unbiased solutions. We deliver long-term customer value, environmental stewardship and sustain- ability through energy efficiency servic- es, alternative energy, supply manage- ment, and innovative facility renewal, all with practical financial solutions to cover the customer's entire spectrum of energy needs. How will the new commercial proper- ty assessed clean energy (C-PACE) law impact your business in Massachusetts? Have you seen an impact with similar laws in other states? More than 25 states have authorized PACE financing. For Massachusetts, we see this as another financing opportuni- ty for commercial properties. To date, the impact of the C-PACE program has been very small. We expect there may be some opportunity down the road. Is the energy efficiency business strong enough to thrive without gov- ernment financial assistance? Yes. Energy efficiency isn't supported by government funding; it is self-fund- ed. With energy savings performance contracts, customers benefit from bud- get-neutral solutions with repayment through guaranteed energy savings. Efficiency services are widely available, have quick payback, are financeable, and with all of the advances in technol- ogy, will continue to help drive addi- tional savings for customers. Renewable projects, however, may need some gov- ernment assistance. How do you expect to grow? Yes. Ameresco expects to continue to grow with deeper penetration in the var- ious market segments and industries we serve, through geographic expansion, and additional service offerings. We'll also continue to provide tremendous customer value with innovative, techni- cally-advanced, comprehensive solutions that fulfill our customers' goals, objec- tives and sustainability requirements. What are your long-term plans? To be #1 in the industry. When I founded Ameresco in 2000, I set out to build an energy company that has the skills, expertise, capabilities and foresight to create innovative, custom- er-valued energy solutions that went far beyond just conservation and addressed a customer's entire energy stream including supply and demand. As we have since the company's inception, we continue to innovate and utilize the lat- est advances in technology in support of our customer's requirements, and to provide more opportunities for greater efficiency and renewable energy at the lowest possible cost. Ameresco's highly talented team has tremendous depth and breadth, is one of the most experi- enced in the industry, and is at the fore- front in helping to drive innovation. I expect Ameresco to continue to build on our solid foundation, drive innova- tion and excellence, and continue to provide customer-valued solutions. This interview was conducted and edited for length and clarity by Brad Kane, WBJ editor. Ameresco seeks to dominate energy efficiency industry Gas prices still lower than last year Drivers have seen significant reductions in gas prices month-over-month and year-over-year from 2015 to 2016. $3.00 $2.00 $1.00 0 $2.06 $2.11 Regular unleaded price per gallon Jan. Feb. Mar. Apr. May Jun. Dec. Nov. Oct. Sept. Aug. Jul. 2015 2016 Source: AAA Southern New England. While AAA Southern New England does a survey every week on Monday, price listed is average statewide price for self-serve regular unleaded on the first Monday of every month. New England still relies on natural gas and nuclear fuels for power New England's power generation fuel mix has shifted dramatically from oil and coal to natural gas since the turn of the century. 0 10% 20% 30% 40% 50% 2000 2015 Natural gas Nuclear Renewables Hydro Coal Oil Percent of use 15% 49% 31% 30% 8% 9% 7% 7% 18% 4% 22% 2% Source: ISO New England, Regional Electricity Outlook, 2016 Note: Numbers reflect actual electricity generation, not total capacity. W

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