Energy Savings in 2013: CEOs Look to Renewables, Natural Gas, Tax Breaks
As the energy landscape shifts, business leaders sharpen their focus on ways to save money in 2013. Forbes identified five energy trends for the new year.
Companies generate their own renewable energy. According to Ernst & Young’s Global Annual Cleantech Insights and Trends study, some 67 percent of C-suite executives surveyed reported that their company-owned renewable generation levels are likely to increase over the next five years. At the same time, 52 percent of respondents say that their use of high-carbon fossil fuels – such as oil and coal – will decrease over the next five years.
Renewables increase, in general. Not only are companies looking to generate more of their own renewable energy, but they also are more interested in purchasing renewables. The Ernst & Young study found that 59 percent of CEOs will increase their renewable energy purchases over the next several years.
Pricing is considered among other factors. As energy management becomes more refined other variables are getting a closer look, including energy security, carbon reduction, price stability, regulatory compliance and brand reputation.
Commercial buildings are targeted. Since 20 percent of the annual energy consumption in the US is attributed to commercial buildings, those structures are getting more attention in terms of energy efficiency. The federal Energy Policy Act of 2005, has been extended through 2013 and allows a tax deduction of $1.80 per square foot to owners of new or existing buildings who install (1) interior lighting; (2) building envelope, or (3) heating, cooling, ventilation, or hot water systems that reduce the building’s total energy and power cost by 50 percent or more in comparison to a building meeting minimum requirements set by ASHRAE Standard 90.1-2001.
Natural gas reigns over oil. When possible, CEOs will choose relatively cheap natural gas over pricey oil. The US Energy Information Administration’s well-publicized recent forecast finds that natural gas production is reaching historic highs and is trading 35 times cheaper than oil. The high natural gas inventories should keep prices down for 2013.
- What You Need to Know About Demand Charges
- Choosing the Right LED Product for Industrial Lighting Applications
- NAEM Trends Report: Planning for a Sustainable Future
- Alarms Management: The Future is Now
- Cox Enterprises Cuts Energy Costs Up to 10-15% in Certain Markets
- How "Fixed" is the Fixed Price Product?
- 2014 Energy and Sustainability Predictions: Findings from Leading Professionals
- The Business Case for Corporate Sustainability Tools
- The Impact of a Changing Workforce on Facilities Management
- An Integrated Approach to Managing Today's Energy and Utility Assets
- BUYING STRATEGIES IN A VOLATILE MARKET: What Businesses Need to Know about Retail Electricity Procurement
- Smart Building Technology: The Key to Comprehensive Building Performance
- What Energy Managers Need to know about Procuring Natural Gas: Guidance for 2014 Natural Gas Contracts
- Energy Optimization from the Boiler Room to the Board Room
- Your Roadmap for Energy Management: First Stop – Myths & Realities of Energy Purchasing