Commercial Opportunities in B2B Energy Efficiency Markets

Commercial Opportunities in B2B Energy Efficiency Markets published by Datamonitor in February, 2009. This report price starts from US $ 2795.

Introduction

Abstract

Introduction

End users are under increasing pressure to limit energy consumption, without compromising output. This is a result of high prices, government regulation and public attitudes towards "Green Issues": reducing one' s carbon footprint has risen up the agenda. This brief explains B2B energy efficiency markets in Europe. It compares and contrasts services on offer, from utilities and from ESCOs.

Scope of this research

• Up-to-date data on European B2B energy efficiency markets
• Understanding of market drivers and concurrent growth prospects
• Analysis of utility and ESCO corporate strategies and business models
• Outlook for regulatory framework in Europe

Research and analysis highlights

Concern amongst governments and electorates over climate change has pushed all major energy users and providers to burnish their "green credentials". Unstable security of supply and high retail prices will serve to enhance this trend. As liberalization continues to enhance competition utilities must diversify their energy efficiency services.

The defining feature of B2B ESCOs is their capacity to finance and manage energy efficiency projects. Whereas the B2C energy efficiency market is dominated by utilities alone, non-utility energy service companies have a large presence in the B2B sector, implying either more intense competition, consolidation or Joint Ventures.

Effective financing and risk management is the key to successful energy efficiency services, and thus market expansion depends on transparency and stability. Significant funding for efficiency projects is available from local authorities, central governments, multi-lateral institutions and NGOs.

Key reasons to purchase this research

• Understand the European B2B energy efficiency services sector and build a strategy for capturing a greater share
• Compare and contrast Utilities' and ESCOs' energy efficiency service offerings, across Europe and America

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • As European liberalization continues apace, utilities have sought to diversify their energy efficiency services offering
    • Supra-national legislation, high energy prices and shifts in public opinion have wrought massive opportunities in the European B2B energy efficiency market
    • The B2B energy efficiency market can be broken down into three sectors: industrial, commercial and municipal
    • In Denmark, Dong established TotalEnergi to provide industrial and municipal energy efficiency solutions
    • Nuon' s Energy Solutions Department focused on CHP technology among business customers, providing a basis for municipal heating
    • In Germany, RWE' s municipal energy efficiency service offering focused particularly closely on brand-imaging
    • GDF-Suez' s Energy Services Business is one of the largest operations of its kind in Europe, spanning virtually all levels of industrial energy efficiency services
    • British Gas sought to raise its municipal energy efficiency profile through a targeted remuneration scheme in schools and communities
  • The defining feature of B2B ESCOs is their capacity to finance and manage energy efficiency projects
    • Siemens' performance contracting model incentivizes efficiency projects and typifies guaranteed savings schemes
    • Multilateral institutions often play a critical role in financing energy efficiency projects by using ESCOs as an intermediary
  • Whereas the B2C energy efficiency market is dominated by utilities alone, non-utility energy service companies have a large presence in the B2B sector
    • Utilities and ESCOs have a long history of both co-operation and competition, particularly in B2B markets
    • Thanks to an aggressive M&A policy, Dalkia has assumed a strong position in all sectors of the energy efficiency services market
    • Schneider Electric' s service offering for Tesco in Thailand was premised upon IT systems to enable effective energy management
    • Enact Energy invested heavily in R&D to develop a strong offering to the municipal energy efficiency market
    • The merger between GDF and Suez has also seen their subsidiaries united to forge one of the largest ESCOs in Europe
    • Honeywell' s European energy efficiency arm, Centraline, provides environmental control technologies to residential construction firms
  • Effective financing and risk management is the key to successful energy efficiency services, and thus market expansion depends on transparency and stability
    • ESCOs and utilities face differing challenges in the unfolding global energy efficiency market
• APPENDIX
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Figures
  • Figure 1: Energy service industry revenues by sector
  • Figure 2: Nuon' s heat production by source in Holland
  • Figure 3: GDF-Suez Energy Services operates in 17 EU states
  • Figure 4: Sample Energy Saver' s Report
  • Figure 5: Typical duration of ESCO contracts
  • Figure 6: Cost reductions arising from guaranteed savings contract
  • Figure 7: Commercial activity accounts for over 50% of Dalkia' s European revenues
  • Figure 8: Total number of ESCO projects in Thailand as of April 2008
  • Figure 9: Enact used revenues from municipal work to invest in commercial projects
  • Figure 10: Industrial ESCO market share in Europe
  • Figure 11: German building energy passport

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