June/July 2009
Volume 2, Numbers 6/7
In its double-edition on the U.S. Energy Efficiency and Demand Response (EE/DR) Industry, CCBJ estimates the industry generated $52.6 billion in revenues in 2008. The EE/DR industry grew by between 12 and 14% from 2005 through 2008, led by the emerging DR industry, including automated metering infrastructure and demand response services provided to energy users and utilities by firms like Comverge and EnerNOC. EE grew by 10-11% in those years, up sharply from 3-8% annual growth for the previous five years and harkening back to the first price-driven efficiency boom in the early 1970s. CCBJ's current forecast expects some leveling in EE revenues with the suspension of capital expenditures during the recession not yet balanced by stimulus funding.
In this edition, CCBJ explores the policy and market drivers that animate the EE/DR industry today. We pay particular attention to the new and emerging business models that have built DR services into a $370 million market from virtually nothing 10 years ago. We examine the strategies of utilities and their consultants to leverage DR and EE to mitigate their climate change exposure and limit the growth of expensive peak generation. And we explore the strategies of consulting engineering firms, technology developers, energy service companies and other participants in this robust and dynamic market.
Inside this Edition:
- Venture and private equity investors had shied away from energy-efficiency investments due to concerns about the lack of IP and cumbersome utility purchasing cycles. The head of the California Clean Energy Fund (CalCEF) explains why investors have changed their perspective and now view EE plays for utility-mediated markets in a favorable light.
- Energy Service Companies and their financing partners have built a business of nearly $5 billion in 2008 largely by implementing EE measures for public and institutional entities. Now start-up firms are looking at how to deploy the ESCO model to commercial and industrial clients; and a veteran observer of the power industry explains why investor-owned utilities should adopt an energy service model to survive the turbulence ahead in the climate-change era.
- How did demand response grown from a gleam in a few visionaries' eyes to a $5.4 billion industry? CEOs from leading DR pioneers and planners with utilities and RTOs explain how it happened and what to expect next.
- In profiles, consulting engineering firms SAIC and TRC Companies describe their strategies for delivering EE/DR services to utilities and large energy users.
Companies and institutions: Ameresco, American Council for an Energy Efficient Economy, Black & Veatch, The Brattle Group, California Clean Energy Fund, Canyon Capital Realty Advisers, Citigroup, Comverge, Ember Corp, EnerNOC, Google.org, Johnson Controls, Lawrence Berkeley National Laboratory, Luminus Devices, Metrus Energy, New Energy Finance, Optimum Energy, Pacific Gas & Electric, PJM Interconnection, PUC of Ohio, Renewable Funding, Southern California Edison, ZigBee Alliance and more.
Look Inside the Energy Efficiency and Demand Response Edition
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