Energy Service Company (ESCO) (ESCO)

A company that specializes in undertaking energy efficiency measures under a contractual arrangement whereby the ESCO shares the value of energy savings with their customer.

A company that offers to reduce a client's energy costs by capitalizing the upfront expenditures and sharing the resulting future cost savings with the client. This is typically accomplished through the use of an energy-performance contract (EPC) or a shared-savings agreement.