While the last couple of years have seen a construction market crippled by the global economic downturn, it's interesting to note the market for efficiency-improving retrofits of existing buildings has experienced steady if not robust growth. Why? The report cites the "carrots" of saving money, a desire to earn a green building certification, and organization drive to reduce a carbon footprint - as well as the "sticks" of evolving building codes and similar regulations.
Going forward, Pike engages us to pay particular attention to the following key trends:
- Energy codes will keep raising the bar - and enforcement is catching up.
- Mandatory disclosure rules will reward building owners who invest in energy efficiency, while minimizing the "split incentive" problems faced by many leased commercial spaces. (We've discussed California's impending disclosure requirements in a previous post).
- The pace of building certification will increase, led by LEED.
- Building energy management systems are in high demand, particularly for large and aging infrastructure.
- The U.S. ESCO market will see moderate growth and ESCOs in Asia Pacific's developing markets will advance rapidly.
- Lighting: Not yet the "Year of the LED".
- The connection between efficient buildings and the smart grid will continue to grow.
- Increasing number of financing options around the world. (Example: the Octus/Five Star Building Energy Savings project financing program).
- PACE is a financing option struggling to overcome roadblocks, particularly on the residential front.
- Systemic conditions, policy choices and practical considerations will continue to present barriers to achieving energy efficiency, but investments in training, information access and technology will gradually overcome many of them.
