Verdantix: 45% of Global Companies to Spend More on Energy Management in 2014
Global spending on energy management by large corporations will increase or remain flat in 2014 with just 6 percent of corporations expected to spend less, according to a new survey from analyst firm Verdantix. On a worldwide basis, 45 percent of corporations will spend more on energy management in 2014 than they did in 2013.
Reflecting the downward pressure on natural gas and electricity prices and subdued economic growth, 50 percent of corporations will keep energy management spend flat.
Other key findings from The Verdantix report, “The State Of Global Corporate Energy Management” include:
- 46 percent of corporations have implemented a global energy management strategy with centralized governance while 54 percent manage decisions at a division or facility level
- Utility bill management is the most outsourced activity with 25 percent of corporations using this service; while 21 percent outsource risk management and 19 percent outsource energy data analytics
- Spend on energy management is on average 10 percent of total spend on energy procurement with significant variations by industry
- 33 percent identify compliance with legislation as the most important factor and 32 percent 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.
The data shows 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. For example, installation of on-site power generation varies enormously by country and industry.
Better energy data management is a much more entrenched spending theme. Ninety-six percent 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 the diverse group of energy software vendors, including DEXMA, Envizi, IMServ, Joulex, Panoramic Power and Urjanet.
The Verdantix results come from 250 heads of energy in 13 countries and 20 industries, surveying new directions in corporate spending on renewable energy, lighting, HVAC, building technologies, energy software and energy services.
- Get Smarter About Your Energy Procurement Data Book
- Migration to Mobile: The Evolution of EHS Management Tools
- 2015 Environmental Leader Product & Project Awards
- Gartner Magic Quadrant
- Improve Your Company's Environment and Energy Performance
- Unlocking the Value of Energy & Operational Data
- Increase the Value of Demand Response Through Automation
- Best Practices in Electricity Procurement
- Combined Heat and Power
- Solar Request for Proposal (RFP) Guide