Energy Management Predictions for 2014

In its new report “Ten Predictions For Energy Management in 2014,” Verdantix says building energy management will explode in Japan. With all 54 of Japan’s nuclear power stations still offline in December 2013, the Japanese government is promoting energy efficiency and utility demand response programs to temper increased fossil fuel imports.

Other key energy management trends that will impact commercial, industrial and utility sectors in 2014 and beyond, according to Verdantix, include:

  • Firms will power ahead with on-site solar electricity generation. In 2014 long-term financial savings, power reliability and reputational benefits will drive commercial and industrial firms to increase their proportion of renewable energy generated on site.
  • Building control systems will integrate with lighting control systems. Historically, building control applications have been HVAC-centric, since heating and cooling were the elements of the building where controls could provide the most value. In 2014 building management systems will integrate with more types of control systems – particularly lighting control systems – due to advances in open and wireless communication protocols and the growing installation of LED lighting.
  • Large-scale battery energy storage will gain access to broader energy markets. Large-scale energy storage has been under development for several decades, but apart from pumped hydroelectric storage it has largely been a market defined by government-funded pilots. Verdantix predicts increased use of energy storage for frequency regulation, particularly in the US, where more Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs), such as those in Texas, are joining PJM to implement the 2011 FERC Order 755. This order rewards resources, including batteries and flywheels, which can react to grid signals at short notice.
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