Rapid changes in the utility sector are generating both opportunities and challenges for energy service companies (ESCO). As a panel speaker at the annual conference of the National Association of Energy Service Companies (NAESCO), Jim Lazar addressed the implications for ESCOs arising from an increase in variable renewables, changes in rate design, and the increased value of quick ramping resources and various kinds of storage.Over half of the world’s solar energy resources were installed within the last three years. This increase in solar supply during the day gives way to a high utility load and ramping challenges for utilities in the evening. Utilities can work with ESCOs to mitigate these ramping challenges by implementing a combination of energy efficiency, energy storage, and demand response measures. In particular, Mr. Lazar encourages service companies to recognize and, where possible, quantify the full value stream of energy efficiency with its multitude of inherent utility system, participant, and societal benefits.Finally, current changes in rate design—an increase in residential fixed charges, peak-time demand charges, the option for real-time pricing for commercial and even residential consumers—also create great opportunity in energy services. These changes triggered an increase in the value placed on building efficiency management systems to reduce peak load, on-site storage, and low off-peak pricing to displace boilers and other thermal loads.