Energy Efficiency Investment

Why companies don’t invest in Energy Efficiency

Energy Efficiency Investment

The French Environmental and Energy Ministery (MEDDE) thinks that firms should invest the equivalent of only 8% of their revenues in Energy Efficiency in 2013. This level of investment was very similar the past years. Like we saw lately, Energy Efficiency markets don’t break through. Yet people agree that energy prices should rise and, then, make Energy Efficiency projects more profitable. So why firms don’t invest more in Energy Efficiency in France, and more broadly in Europe?

As an example, motors represent 70% of industry electricity consumption. Yet, and despite European IE standards and regulation, only 15% (source: ABB) of motors sold in 2012 are very highly efficient motors. From a service perspective, and as highlghted by DALKIA’s French Deputy Managing Director, Marie MUGLER, industrial firms are waiting for more visibility in terms of European climate and energy objectives and regulation.  According to her, « more than half of firms freeze their investments in Energy Efficiency. Hopefuly, there are still proactive firms willing to work on these subjects and energy comes back an area of concern for firms’ executive committees ».

SCHNEIDER Electric France’s CEO, Guy DUFRAISSE, suggests that « we should set up energy intensity reduction, just like French Government did for nuclear-based electricity generation programme development [in sixties]. » Clearly, without any clear ambitious and shared goal defined at European and EU Member States levels, we can’t expect Energy Efficiency markets to bloom.

However, my personal belief is that there is an exception to this way of thinking. What if some proactive and ambitious European and non-European firms would try to pull Energy Efficiency markets up by offering highly qualitative and “sexy” products to local authorities, individuals and other firms? That’s the raison d’être of this blog: provide firms best practices and feedback to help them develop upcoming products in European markets.

We’ll see soon a practical example of upcoming Business Plan, which should bloom within the continent.


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