Facilitating ESCO market development through value co-creation: role of utility sector intermediaries

The growth of energy service company (ESCO) markets in the private sector is restricted by a fragmented and highly uncertain market and by customers who are often unknowledgeable and unwilling. This study explores the potential role of utility companies as intermediaries in connecting supply-side ESCOs with potential demand-side customers in a manner that ensures customer satisfaction. The paper adopts a customer-centric, service-dominant logic perspective to examine how a utility company facilitates value co-creation in an in-depth case study of an extensive retrofit programme in the Emirate of Sharjah, United Arab Emirates. The findings underline several value co-creation roles associated with the utility company intermediary, notably relationship-enabling, communication-enabling and knowledge-enabling roles. We conclude with recommendations on how utility companies can facilitate the co-creation of value at the ESCO-customer interface and, hence, support the development of ESCO markets towards decarbonising the built environment.