A new report by Navigant Research forecasts government and utility spending on energy efficiency programmes to reach $56 billion by 2026 globally.Government and utility spending on energy efficiency initiatives are expected to increase globally under efforts to reduce energy consumption levels and costs to help utility firms to improve the reliability of their grid networks and customer services.
In a press statement, Navigant Research notes that government and utility spending on energy efficiency will increase in a bid to reduce carbon emissions in light of fossil fuel utilisation in energy generation. Carbon emission reduction targets set at national and international levels will drive the increase in energy efficiency spending.
In 2017, governments and utilities are expected to invest up to $25.6 billion in energy efficiency programmes.
Brett Feldman, principal research analyst with Navigant Research, commented: “The largest region of spending is expected to be Europe, reaching $21.4 billion in 2026 due to an increased emphasis on reducing energy consumption and related emissions.
“Globally, as energy efficiency spending and savings expand, utilities and solution providers will have to adjust their business models to find new ways to profit and create value for consumers, or they will risk losing revenue and market share.”
Utilities are expected to expand their energy service offerings by including energy efficiency services to increase their revenue collection.
“Mergers and acquisitions of energy efficiency services firms have also been increasing, with utilities, technology providers, and energy equipment manufacturers all stepping into the market,” according to a company statement.
[quote] Moreover, the adoption of remote monitoring, control and data analytics is enabling new business models and service solutions while encouraging energy efficiency spend, finds the report.
Residential and business consumers are also expected to spend their own money to improve their energy efficiency.
Energy efficiency funding
Meanwhile, in North America, the government of Antigua and Barbuda announced that it plans to improve its energy efficiency by replacing existing streetlights with smart LEDs.
According to a press statement issued by the government, the island will use a $5.9 million loan secured from the Caribbean Development Bank and a $1 million grant to deploy the smart LED streetlight project.
Under the programme, some 14,000 high-pressure sodium and mercury vapour lights will be replaced with energy-efficient LED streetlights.
The installation of the LED streetlights began in February through to the end of 2019. Once completed, the project is expected to help the government of Antigua and Barbuda to reduce its energy consumption from street lighting by 4,900MWh per year.The use of the LED streetlights will also help the island to reduce its energy generation and reduce carbon emissions by 3,200 tonnes by 2019. Read more...
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