Electric and gas utility companies can use a pay-for-performance marketplace to foster innovation and growth.

The energy industry is undergoing a significant shift, particularly in the realm of energy efficiency and demand-side management programs. On September 10, 2025, AESP (Association of Energy Service Professionals) hosted a webinar to discuss the drivers and benefits of Performance-Based Incentives (P4P) approaches. The webinar, organised in collaboration with GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit), attracted representatives from Duke Energy, MCE, Northern Pacific Power Systems, and our own organisation.

The webinar began by emphasising the importance of P4P approaches for trade allies. In these approaches, allies are required to deliver compelling solutions to customers that deliver savings cost-effectively. This not only creates opportunities for trade allies to make money by delivering outcomes, but also supports improved, cost-effective outcomes for utilities.

P4P approaches were also highlighted for their ability to increase accessibility and savings for customers. By focusing on measures rather than what customers and buildings need most, P4P approaches can provide a more tailored and effective approach to energy efficiency and demand-side management. This can lead to increased savings for customers and improved programme outcomes for utilities.

The webinar also provided specific examples of how P4P approaches have been leveraged to drive program outcomes. For instance, it was discussed how P4P approaches can align the interests of utilities, trade allies, and customers, thereby overcoming barriers to traditional utility programs. A fragmented set of prescriptive programs can limit offerings for customers, making it difficult for trade allies to navigate these programmes. P4P approaches, on the other hand, offer a more flexible and customer-centric approach.

In addition to the benefits for utilities, customers, and trade allies, P4P approaches can also provide growth opportunities for trade allies. By focusing on delivering cost-effective solutions, trade allies can demonstrate their value and expand their business.

A condensed version of the webinar, covering its highlights, is available for viewing. For those interested in a more in-depth analysis, video links for the full webinar and the condensed version are provided. Our website also provides an overview of the webinar, including key takeaways and insights.

Sam Crawford, associate director at our website, emphasised the need for change in traditional utility programs. Traditional programs may impede innovation and limit effectiveness, according to Crawford. P4P approaches offer a more flexible and customer-centric approach, which can lead to improved outcomes for all parties involved.

In conclusion, the webinar provided valuable insights into the benefits and drivers of P4P approaches. As the energy industry continues to evolve, it is clear that P4P approaches will play an increasingly important role in energy efficiency and demand-side management programs.

Electric and gas utility companies can use a pay-for-performance marketplace to foster innovation and growth.