1 Institute for Building Efficiency | www.InstituteBE.com Copyright 2011 Johnson Controls, Inc. 1 ENERGY EFFICIENCY INDICATOR 2011 Global Results
Institute for Building Efficiency | www.InstituteBE.com 1 Institute for Building Efficiency | www.InstituteBE.com Copyright 2011 Johnson Controls, Inc.1
ENERGY EFFICIENCY INDICATOR2011 Global Results
Institute for Building Efficiency | www.InstituteBE.com
A global survey of decision makers responsible for energy use in buildings
THE ENERGY EFFICIENCY INDICATOR
Fifth annual survey led by the Institute for Building Efficiency, an initiative of Johnson Controls providing information and analysis of technologies, policies, and practices for efficient, high performance buildings and smart energy systems around the world.
2
1,249 1,146
2,5672,882
3,868
2007 2008 2009 2010 2011
North AmericaEuropeIndiaChina
(7 languages)
North AmericaIndiaBrazil
(2 languages)
North America
(English only)
North America
(English only)
North AmericaEuropeIndiaChina
AustraliaBrazil
South Africa
(8 languages)
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EEI PARTNERS
Thank you to our global partners:
And our in-country strategic partners:
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EEI SURVEY SCOPE13 countries, 8 languages, 3868 respondents
4
1,692
103
857
77
428
450
155
More respondents and more geographies
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EEI RESPONDENTS
Respondents by sector, job title and facility size:
Industrial18%
Commercial58%Institutional
25%
Facility Managers
24%
VPs23%
Owner/Proprietor
22%
C-level13%
Other13%
>500 kSF40%
<50 kSF28%
50 -500 kSF32%
1. Must have budget responsibility for their organization’s facilities.
2. Job responsibilities must include reviewing or monitoring energy usage, and/or proposing or approving initiatives to make organization’s facilities more efficient.
Criteria:
A look into the minds of decision-makers of all types
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THE PATH TO ENERGY EFFICIENCYRespondents shed light on the journey and the destination
1. Markets moving toward energy efficiencyThe 2011 survey shows an increasing emphasis on managing energy and setting goals. The motivations are changing.
2. Obstacles along the wayMarket barriers identified by respondents reveal a path to efficiency, with single organizations and entire regions at different stages of the journey.
3. Success factorsThe responses reveal four attributes of organizations that invest more in efficiency.
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ENERGY EFFICIENCY INDICATOR2011 GLOBAL RESULTS
Markets moving toward energy efficiency
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ENERGY IMPORTANT AROUND THE WORLDIndia and China respondents express most interest
Respondents identifying energy management as extremely or very important
Global U.S. / Canada Europe China India
60%52% 55%
79%85%
70% 66% 61%
84% 88%
0%
20%
40%
60%
80%
2010 2011
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2010 Global
2011 Global
Drivers of efficiency Europe India China US/CA
Energy cost savings
Gov’t/utility incentives/rebates
Enhanced brand or public image
N/A Increasing energy security
Greenhouse gas reduction
Existing policy
9
CHANGING MOTIVES FOR ENERGY EFFICIENCYCost, incentives, public image top the list
1
2
3
111
2
3
3
2
2
3
How significant are the following in your organization's energy efficiency decisions?
1
2
3
1
2
3
4
4
6
4
6
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EXPECTATIONS OF ENERGY PRICE INCREASESMore respondents expecting increases than a year ago
Do you believe the price of energy will increase over the next 12 months?
11% price increase
expected on average
Global U.S. / Canada Europe China India
69% 68% 64%
88%79%81% 80% 80%
93%83%
0%
20%
40%
60%
80%
2010 2011
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INCENTIVES GAIN MARKET TRACTIONIncrease in both experience and prioritization of incentives
41%
18%
53%
29%
0% 20% 40% 60%
Influence of Gov't Incentives on energy efficiency decisions is extremely or very significant
Using or considering grants, rebates, or tax credits for financing
2011
2010
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19%
37%
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GROWTH IN GREEN BUILDING CERTIFICATIONOne indicator of brand/public image driving decisions
2010
2011
Percentage of respondents with at least one green-certified building
An additional 32% have incorporated green building elements without certifying
Certifying existing buildings now more common than new buildings
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MEASURES ADOPTED BY CATEGORYLarger facilities more likely to implement projects
12%
12%
8%
20%
20%
42%
48%
62%
4%
24%
21%
28%
35%
42%
63%
70%
1%
31%
34%
44%
51%
54%
75%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
None
Onsite renewable energy
Smart grid or smart building technology
Building envelope improvements
Energy supply and/or peak demand management
Behavioral improvements
HVAC and/or controls improvements
Lighting improvements
>500,000 sf
50,000-500,000 sf
< 50,000 sf
Which of the following energy efficiency measures has your company/organization adopted in the last 12 months?
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WIDE RANGE OF PROJECTS PURSUED52 measures (energy efficiency, renewables, demand mgmt)
61% Switched to energy efficient bulbs, lamps, ballasts or fixtures
39% Installed occupancy- or photo- sensors
38% Adjusted HVAC control setpoints or schedules
37% Increased awareness of facility occupants to reduce energy use
36% Replaced inefficient equipment before the end of its useful life
29% Upgraded or improved an existing building management system
15% Solar Electric
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TECHNOLOGY EXPECTATIONS -10 YEAR HORIZONDifferent ideas about markets for different regions
0% 10% 20% 30% 40% 50% 60%
Biomass generators or co-gen units
Concentrating solar power (CSP)
Geothermal / ground source heat pumps
Solar photovoltaics (PV)
Smart building technology
Lighting technologies
US / Canada
Europe
China
India
Which of the following on-site technologies do you expect to have the greatest increase in market adoption over the next ten years? (select up to three)
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ENERGY EFFICIENCY INDICATOR2011 GLOBAL RESULTS
Obstacles along the way
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BARRIERS TO EFFICIENCYTechnical, organizational, and financial challenges
What is the top barrier to pursuing energy efficiency at your company/organization?
8%
8%
9%
9%
12%
19%
30%
0% 10% 20% 30% 40%
No organizational ownership/dedicated attention to managing energy efficiency
Landlord/tenant split incentives
Lack of technical expertise to evaluate or execute projects
Lack of awareness about opportunities
Uncertainty regarding savings/performance
Insufficient payback/ROI
Lack of funding to pay for improvements
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OBSTACLES IN THE PATHOrganizations and regions at different points along the way
What is the top barrier to pursuing energy efficiency at your company/organization?
7%
8%
12%
17%
6%
10%
16%
14%
10%
13%
16%
14%
21%
19%
17%
16%
38%
30%
18%
17%
Technicalexpertise
Awareness Certainty of savings
Financial criteria
Availablecapital
India
China
Europe
U.S. /Canada
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ENERGY EFFICIENCY INDICATOR 2011 GLOBAL RESULTS
Success Factors
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1) GOAL-SETTING IS COMMONPLACEThree of four respondents have some form of reduction goal
Which of the following best describes your company/organization’sgoals for the next 12 months?
24% 27%
34% 29%
39%33%
3% 10%
Energy Carbon
No goal, not reducing
No goal but reducing
Internal Goal
Public Goal
76% of respondents have either an energy or carbon
reduction goal
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2) FREQUENT ANALYSIS OF ENERGY DATASmart building technology converts data to actionable information
How frequently does your company/organization collect and use energy usage data?
Those who have implemented smart grid/building technology
are 2.5 times more likely to review data frequently
U.S. respondents say smart building and lighting technology
will see greatest increase in market adoption in next decade.
43%
15%
40%
43%
12%
37%
5% 5%
Measure & Record Review & Analyze
Don't know
Quarterly or less
Monthly
At least weekly
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3) ORGANIZATIONAL CAPACITY & CAPABILITYChina and India adding people, U.S. hiring consultants
How have energy efficiency activities impacted personnel decisions?
U.S. respondents most likely to
have hired energy
consultants (41%)
Did not add resources Added resources(internal or external)
55%45%49% 51%
16%
84%
28%
72%
0%
20%
40%
60%
80%
100%
U.S. / CanadaEuropeChinaIndia
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4) SUPPLEMENTING BUDGETS WITH EXT. FINANCINGInternal budget constraints most commonly cited
What is the top financial barrier to pursuing energy efficiency for your organization?
Organizations are looking to use internal capital
first
69% have used internal budgets in
the past 2 years
74% of those will use internal
budgets in the next2 years
3%
3%
4%
5%
7%
33%
0% 10% 20% 30% 40%
Inability to secure external financing
Balance sheet debt limitations
Difficulty identifying appropriate financing options
Difficulty obtaining external financing at attractive rates and terms
Insufficient government or utility incentives
Insufficient internal capital budget
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ATTRIBUTES OF CLEAN ENERGY SUCCESSExamining the links in the 2011 data
Average number of measures implemented per organization
Set a reduction goal
Analyze energy data frequently
Adding internal or external resources
Using external financing5.7
10.6
6.6
10.6
6.3
11.1
5.7
11.2
No
Yes
No
Yes
No
Yes
No
Yes
13.2 measures adopted by orgs
with all 4 attributes(3.2 for those with none)
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CONCLUSIONS AND IMPLICATIONS
1. Markets moving toward energy efficiencyEnergy continues to be a strong priority for organizations around the world, driven by a cost savings, incentives and public image.
2. Obstacles in the wayAwareness of opportunities, technical expertise, certainty of savings, financial criteria and available capital – barriers vary for organizations and regions.
3. Success factorsSetting goals, increasing the frequency of data analysis, securing internal/external resources and leveraging external capital are keys to deeper efficiency improvements and greater savings.