Confidence in the UK’s fast growing non-domestic energy efficiency market, valued at £10bn to £15bn, is at an all-time high a new report reveals today.
The latest quarterly Energy Efficiency Trends Report is based on a survey of the UK’s leading non-domestic energy efficiency suppliers and consumers. These are typically organisations who supply energy efficiency technologies and services to non-domestic clients and consumer organisations in the private and public sectors who buy energy efficiency technologies and services.
Highlights of the report, produced by EEVS Insight, Bloomberg New Energy Finance and the UK Green Investment Bank, include:
- Suppliers of energy efficiency technologies and services have expressed their highest level of confidence in the energy efficiency market since tracking began in 2012.
- The confidence index contained in the report is a measure drawn from five key indicators: order books, staff numbers, sale prices, industry risk and effectiveness of Government energy efficiency policy.
- Almost half of the suppliers surveyed confirmed a rise in their number of UK employees in the past quarter.
- Over the same period public and private sector organisations have shown increased demand for energy efficiency technologies.
- Demand is driven by an increase in new projects in the areas of energy efficiency lighting and controls, motors and drives, HVAC, boiler optimisation, and refrigeration.
- New projects continue to be concentrated in a wide range of property types most notably offices, public buildings, schools and universities.
- Median project cost has reached an all-time high of £167,000 per project.
- In the area of finance, in-house funding continues to be the dominant method of backing new projects although it is on sustained downward trend in favour of combined in-house and third party finance.
- Consumers’ expectations are shifting towards longer payback periods with almost a third expecting payback over more than five years.
The full report can be found on the EEVS website.
Bill Rogers, Head of Strategy at the UK Green Investment Bank, said:
Greater energy efficiency is the key to a greener, more productive, competitive and secure UK economy. Although a relatively new market in the UK, non-domestic energy efficiency is fast growing and is forecast to require up to £15bn of investment between now and 2020. Confidence is critical to a new market which is why the report’s findings, showing optimistic suppliers and consumers, are such good news.
Tom Rowlands-Rees, Head of Energy Smart Technologies at Bloomberg New Energy Finance, said:
Improving energy efficiency is central to a number of current challenges, such as maintaining economic competitiveness, boosting energy security, creating jobs as well as, of course, tackling climate change. However tracking the state of this nebulous market is notoriously challenging. It is therefore very encouraging to see our market report – the first of its kind – showing a trend of increasing optimism. It is our hope that the new analyses introduced this issue will bring further confidence to this emerging sector.
Ian Jeffries, Head of Information Services at EEVS Insight, said:
At a time when the UK’s economic recovery is predicted to gather pace, it is pleasing to report that energy efficiency is making its own sustained contribution. Ostensibly a ‘spend to save’ investment proposition, energy efficiency is a great way to cut operational costs and boost productivity. Our latest market report shows that UK organisations are very much alive to this and are actively investing in order to drive long term efficiency savings and enhanced competitiveness. This is great news for UK plc.
- Tom Rowland-Rees, BNEF on 0203 216 4144
- Ian Jeffries, EEVS on 077 7093 0290
- Stephen Moir, UK Green Investment Bank on 0330 123 2167
Notes to editors
Energy Efficiency Trends Volume 8
Since its creation in 2012 Energy Efficiency Trends has established itself as the place to go for information on the energy efficiency market. The EEVS/Bloomberg/UK Green Investment Bank Energy Efficiency Trends Survey (Vol.8) was conducted between 14 August 2014 and 12 September 2014 and completed by 88 UK-based respondents (62 consumer organisations and 26 suppliers).
EEVS is a leading global provider of independent performance information and analysis services for energy efficiency. Its core service is high quality performance measurement and verification for energy efficiency projects. Since 2011, EEVS has evaluated the performance of more than 400 energy-saving schemes to the global good practice standard – the International Performance Measurement and Verification Protocol (IPMVP). This impartial and good practice analysis is vital for the industry’s development – enabling suppliers to prove their performance credentials, whilst giving consumers all-important comfort that they are getting value for money from their investments.
EEVS’ wider information services complement project-level analysis and aim to support greater market transparency, improving the attractiveness of energy efficiency as an investment and accelerating the uptake of the best performing technologies and services.
About Bloomberg New Energy Finance
Bloomberg New Energy Finance (BNEF) is the definitive source of insight, data and news on the transformation of the energy sector. BNEF has staff of more than 200, based in London, New York, Beijing, Cape Town, Hong Kong, Singapore, Munich, New Delhi, San Francisco, São Paulo, Sydney, Tokyo, Washington D.C., and Zurich.
BNEF Insight Services provide financial, economic and policy analysis in the following industries and markets: wind, solar, bioenergy, geothermal, hydro and marine, gas, nuclear, carbon capture and storage, energy efficiency, digital energy, energy storage, advanced transportation, carbon markets, REC markets, power markets and water. BNEF’s Industry Intelligence Service provides access to the world’s most comprehensive database of assets, investments, companies and equipment in the same sectors. The BNEF News Service is the leading global news service focusing on finance, policy and economics for the same sectors. The group also undertakes custom research on behalf of clients and runs senior-level networking events, including the annual BNEF Summit, the premier event on the future of the energy industry.
For more information please visit about.bnef.com
About UK Green Investment Bank
The UK Green Investment Bank was created by the UK Government, its sole shareholder, with an initial £3.8 billion of public funds. This finance is used to back green projects (including energy efficiency) on commercial terms and to mobilise additional private sector capital into the UK’s green economy. Investments help fund the creation of new energy and waste infrastructure across the UK and with that, new jobs in construction and operations.