Recent findings outline the energy management priorities, practices and investment plans among decision makers responsible for managing commercial buildings and their energy use.

The Energy Information Administration (EIA) estimates that world energy use will jump nearly 50 percent over the next 25 years. According to a report published by the statistical agency of the U.S. Department of Energy in late May, the industrial sector uses more energy globally than any other end-use sector, currently consuming about 50 percent of the world’s total delivered energy.

Of course, energy will continue to play a critical role in the future of industries such as manufacturing, agriculture, mining and construction — not to mention national economies in whole. Power generation and distribution, as well as energy pricing and consumption — for activities ranging from processing to lighting — remain key concerns for businesses across the industrial sector.

“Worldwide, projected industrial energy consumption [will] grow from 184 quadrillion Btu [British thermal units] in 2007 to 262 quadrillion Btu in 2035,” the EIA said.

Clearly, increasing efficiency remains vital for meeting future added demand.

According to Johnson Controls‘ fourth annual Energy Efficiency Indicator (EEI), released last month, 71 percent of respondents are paying more attention to energy efficiency now than they were a year ago.

Across all regions surveyed this year, 92 percent of respondents consider energy management at least somewhat important. Overall, 60 percent said energy management is “extremely” or “very important” to their organizations.

Notably, commercial decision makers from India (85 percent) and China (80 percent) were more likely to consider energy management “very” or “extremely” important, compared with those in Europe (55 percent) and North America (53 percent).

The EEI tracks energy management priorities, practices and investment plans among decision makers responsible for managing commercial buildings and their energy use. Johnson Controls has conducted the EEI survey in North America for the last four years. This year marks the first time the survey has been conducted across Canada, China, France, Germany, India, Italy, Poland, Spain, the United Kingdom and the United States.

Based on a March 2010 survey of more than 2,800 executives and managers responsible for making investments and managing energy in commercial buildings worldwide, the industrial firm found that companies’ investment levels in energy efficiency have remained strong despite the global recession: 56 percent of respondents have invested the same or more in energy efficiency over the last 12 months.

On a regional level, respondents have invested either the same amount or more in energy efficiency in the following regions over the past year: China (60 percent); the U.S. (59 percent); Europe (55 percent); and India (45 percent).

“Energy efficiency measures with low first cost and/or rapid paybacks were most likely to have been implemented by respondents over the last twelve months,” the EEI executive summary explains. “Lighting retrofits were the most popular improvement. Seventy-three percent of those surveyed switched to energy efficient lighting and 44 percent have installed occupancy or daylight sensors.”

While motivations differ from region to region, cost savings is the key driver of energy-efficiency investments this year, with 97 percent of respondents identifying it as a significant priority. Lowering greenhouse emissions is the second most influential factor (74 percent) in all regions except North America, where boosting public image (63 percent) and taking advantage of government utility incentives (62 percent) are considered higher motivators.

“It’s not surprising that energy cost is considered the most important driver,” according to the report. “After energy prices fell with demand in many regions during 2009, 69 percent of global respondents expect energy prices to climb again during 2010. An additional 22 percent do not expect prices to change significantly, leaving only 9 percent who believe prices will decrease this year.

“The average expectation among all respondents is a nine percent increase in the combined price of energy over the next 12 months,” the report continues.

As such, the outlook for capital and operating investment in energy efficiency in 2010 is strong.

Globally, 63 percent of global respondents said they intend to make capital investments in energy efficiency over the next 12 months, and 70 percent plan operating budget expenditures in efficiency programs.

Meanwhile, in the firm’s survey of 1,435 North American decision makers responsible for commercial buildings’ energy use, 52 percent intend to make capital investments in energy efficiency, up from 46 percent in last year’s survey. The North American research, conducted in tandem with the International Facility Management Association and the American Society of Healthcare Engineering and published in April, found that 60 percent plan to make operating budget expenditures in efficiency programs over the next 12 months, up from 55 percent in 2009.

“Efficiency investments are a fast and low-risk way to cut operating costs,” the EEI report said.

According to a July 2009 McKinsey & Company report, a $520 billion investment in optimizing U.S. energy efficiency through 2020 would yield $1.2 trillion in gross energy savings and reduce end-use energy consumption by 9.1 quadrillion Btu, or roughly 23 percent of projected demand over the next decade.

Recent

World Energy Use Projected to Grow 49% by 2035

2010 Energy Outlook

Resources

International Energy Outlook 2010
U.S. Energy Information Administration, May 25, 2010

World Energy Use Projected to Grow 49 Percent Between 2007 and 2035…
U.S. Energy Information Administration, May 25, 2010

2010 Energy Efficiency Indicator – Global Results
Johnson Controls, June 3, 2010

2010 Energy Efficiency Indicator Global Survey Results: Executive Summary
Johnson Controls, June 3, 2010

Energy Efficiency Indicator: 2010 North America Results
Johnson Controls, April 19, 2010

Unlocking Energy Efficiency in the U.S. Economy
McKinsey & Company, July 2009