by Brianna Crandall — June 27, 2011—Rising energy prices, government incentives and enhanced public image are driving energy efficiency in buildings to new heights as a growing number of building owners race to reduce energy consumption, according to the results of the fifth annual global Energy Efficiency Indicator (EEI) survey. The researchers noted that buildings account for 42% of global energy usage.
The annual online survey of nearly 4,000 building owners and operators around the world was led by Johnson Controls’ Institute for Building Efficiency, the International Facility Management Association (IFMA), and the Urban Land Institute (ULI). It asks executives responsible for energy use and real estate decisions about their management practices, investment plans, technology integration and financing approaches, providing a unique perspective on the market through the lens of those on the front lines.
Although the primary motivation for energy efficiency projects continued to be energy cost savings, government incentives and enhanced public image were also important, ranking second and third in the survey. Greenhouse gas reduction, which ranked as the second highest motivator in 2010, tied for fourth in 2011 with increasing energy security, and existing policy again came in sixth.
Rising energy costs are clearly on building owners’ minds, add the researchers. Eight in 10 respondents expect double-digit energy price increases over the next year. As a result, owners have set an average energy reduction target of 12 percent. But significant obstacles exist to meeting these ambitious goals. Access to funding and financial returns were cited as the top barriers globally. Indeed, barriers to capital access topped the list for respondents in the U.S./Canada (38%) and Europe (30%).
Incentives have gained market traction, with 29% of respondents using or considering grants, rebates, or tax credits for financing in 2011 as opposed to 18% in 2010, and 53% saying that the influence of government incentives on energy efficiency decisions is extremely or very significant, rising from 41% in 2010.
Other highlights of what building owners and operators are saying around the world include:
- Seven in 10, up from six in 10 the previous year, indicate that energy management is important to them, with respondents in India (89%) and China (85%) expressing the most interest, followed by U.S./Canada (66%), and Europe (61%).
- Three out of four have set energy or carbon reduction goals.
- Nearly four in 10 have achieved at least one green building certification, twice as many as the prior year. An additional third (32%) have incorporated green building elements.
- Building owners planning to pursue green building certifications for existing buildings (39%) slightly outpaced those with plans to certify new construction (35%).
- Lighting and heating, ventilation, air conditioning and controls improvements continued to be the most popular energy efficiency improvements made last year.
- Building owners have greater access to energy data, but few are taking advantage of it. More than eight in 10 measure and record data at least weekly or monthly, but fewer than two in 10 review and analyze that data at least weekly. Those who have implemented smart grid/smart building technology such as advanced energy metering and management systems are nearly 3 times more likely to review and analyze their data frequently.
- Organizations that set a reduction goal, analyze energy data frequently, add internal or external resources, and use external financing were found to implement four times as many improvement measures as those who did none.
- Three out of four have set energy or carbon reduction goals.
Highlights of the survey results for North America show a double-digit increase in U.S./Canada building owners who believe energy management is important (66%) compared to the prior year (52%). Building owners expect lighting and smart building technology to have greater adoption rates over the next ten years than renewable energy technologies in the U.S./Canada. Seventy-seven percent (77%) of U.S./Canada building owners plan to include green building elements in their facility plans in the next 12 months. Efficiency in buildings remains the top global strategy for reducing greenhouse gas emissions led by the U.S./Canada (52%) and then Europe (28%), China (27%), and India (24%).
The 2011 Energy Efficiency Indicator is the second with a global scope, and the largest to date in geography and number of respondents. It covered 13 countries on six continents, was offered in eight languages, and drew nearly 4,000 responses. The survey reaches a mix of CEOs, CFOs, real estate executives, FMs and engineers, and sustainability managers in organizations of all sizes. It covers a broad array of industry sectors: government, education, real estate, healthcare, finance, manufacturing, retail, life sciences, engineering, construction, and more.
The global and North America survey results were announced June 16 during the 22nd annual North America Energy Efficiency Forum in Washington, DC, co-sponsored by the U.S. Energy Association and Johnson Controls.
