Ameresco, the US-listed cleantech integrator held its 2023 Investor Day in London, UK on 11th May 2023. In this Research Note, we examine Ameresco’s strategy and growth opportunities in Europe based on the webcast and Q&A sessions of the event, together with presentations and press releases over the past year.

Founded in 2000, Ameresco, Inc. is ranked as the number one energy services player in the USA with $1.8 billion revenues in 2022. Their comprehensive portfolio includes energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions delivered to clients throughout North America and Europe.

Ameresco’s sustainability services in support of clients’ pursuit of Net Zero include upgrades to a facility’s energy infrastructure and the development, construction, and operation of distributed energy resources. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,300 employees providing local expertise in the United States, Canada and Europe.

Ameresco’s energy services business reduces energy consumption and costs with capital projects and operational modifications. Energy Savings Performance Contracts (ESPC) enable customers to renew facilities without capital expenditures.

These budget-neutral solutions place energy-efficient upgrades within financial reach. The company also believes that the need for consultative carbon reporting services and energy software-as-a-service will have broad-scale applicability across Europe, as more and more companies and institutions commit to decarbonization and net zero goals.

The recent Investor Day in London was focused on Ameresco’s expansion into Europe. The group already has a footprint in the UK, Ireland, Italy and Greece. Ameresco has been present in the UK since 2014 with the acquisition of Energyexcel.

Ameresco claims to have the largest market share in public sector energy services consultancy and integration projects in the UK.

An important project awarded to Ameresco UK last year is the Bristol City Leap decarbonization project. Ameresco, in collaboration with Vattenfall Heat UK, will work through a unique public-private partnership structure to provide services including energy efficiency upgrades, wind and solar services, project financing, long-term operation and maintenance and more.

The Bristol City Leap project is intended to operate over a 20-year term, targeting net zero goals through a series of energy and infrastructure investment opportunities, attracting approximately £1 billion of inward investment. Projects include a major expansion of Bristol’s Heat Network, providing local businesses and residents with access to reliable, affordable low-carbon heat from sustainable sources.

Solar panels and low-carbon heating systems will also be installed at local schools and the council’s social housing will be made more energy efficient with the aim of reducing energy bills.

In February 2023, the group announced the acquisition of Enerqos, Energy Solutions Srl, a renewable energy and energy efficiency consultancy based in Milan, Italy. They have a large portfolio of cost saving and carbon reduction projects across multiple markets in Italy, including healthcare, real estate, retail and residential.

In April 2023, Ameresco established a joint venture with Sunel Group, a Greek EPC contractor and developer to bid projects exceeding 1,5 GWp in the United Kingdom, Greece, Italy, Spain and Romania. The partners have established Ameresco Sunel Energy S.A., which has already been selected by Cero Generation, a leading European solar energy developer, as the contractor for “Delfini”, a 100MWp solar photovoltaic (PV) project in Greece, currently in the construction phase.

“As we continue to accelerate our European growth strategy, these projects are a testament to our capabilities in delivering large-scale renewable energy projects.” said George P. Sakellaris, Ameresco’s Chairman and CEO.

Their strategy in the region is to;

• Amplify Ameresco’s robust portfolio of solutions and low-carbon technologies.
• Make accretive acquisitions with established local companies that have a strong track record and customer portfolio.
• Enter joint ventures and secure partnerships that strengthen bidding position and regional expertise.
• Target countries that are underserved and have favourable political environments, making it quicker to gain traction – for example, Spain, Italy, Greece, Romania and Poland.

Ameresco anticipates further activity in Europe in 2023 as they continue to strategically extend their presence to take advantage of this large and growing market opportunity.

This business expansion creates stronger competition for Siemens Energy Performance Contracting and other ESCO businesses in Europe, which are focused on commercial real estate and the public sector.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.