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Energy management spending in 2014

Hydrocarbon Engineering,


According to a survey from independent analyst firm Verdantix, global spending on energy management by large corporations will increase or remain flat in 2014 with just 6% of corporations expected to spend less. The survey is carried out annually and questions 250 heads of energy in 13 countries and 20 industries. This year’s survey has identified new directions in corporate spending on renewable energy, lighting, HVAC, building technologies, energy software and energy services.

Key findings

  • 46% of corporations have implemented a global energy management strategy with centralised governance whilst 54% manage decisions at a division or facility level.
  • Utility bill management is the most outsourced activity with 25% of corporations using this service; while 21% outsource risk management and 19% energy data analytics.
  • Spend on energy management is on average 10% of total spend on energy procurement with significant variations by industry.
  • 33% identity compliance with legislation as the most important factor and 32% of respondents rank cost savings as the primary driver for spending.
  • Energy leaders rate CFO hurdle rates, a lack of quantifiable benefits and insufficient cost savings as the primary barriers to investing in energy management.

Comments on energy management

‘On a worldwide basis, 45% of corporations will spend more on energy management in 2014 than they did in 2013,’ stated Janet Lin, Verdantix Energy Practice Research Director. ‘Reflecting the downward pressure on natural gas and electricity prices and subdued economic growth, 50% of corporations will keep energy management spend flat. Prominent suppliers such as DNV KEMA, Ecova, Rockwell Automation and Siemens Building Technologies will benefit from increased customer spend if major economies gather momentum through the year.

‘Our data show that energy leaders in Brazil, Germany, South Africa and the US face different risks and opportunities depending on price trends, market deregulation and investment incentives,’ added Lin. ‘Installation of onsite power generation varies enormously by country and industry. By contrast better energy data management is the most entrenched spending theme. 96% of 250 corporations believe they need to enhance the volume, quality and frequency of energy data collection and reporting. This is a shot in the arm for a diverse group of energy software innovators such as DEXMA, Envizi, IMServ, Joulex, Panoramic Power and Urjanet.’

Adapted from a press release by Claira Lloyd.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/10092013/2014_energy_management_spending628/


 

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