Spending on energy efficiency for buildings to boom in next five years, report says
The national push for more energy efficient buildings has increased over the past several years, according to a new report from Pike Research.
GreenBiz reported that the new projections show a potential 50 percent increase in the energy efficient building market between now and 2017. This rise in interest may lead to a total expenditure of $103.5 billion within the industry during this time period.
According to the news source, a main factor for this increase in spending within the industry could be the aggressive energy efficiency policies that are being pursued by governments and companies around the world.
The U.S. has enacted policies and directed funding towards an initiative that seeks to be an industry leader. The Department of Energy (DOE) has given an award of $122 million to a specific project, the Greater Philadelphia Innovation Cluster for Energy Efficient Buildings (GPIC).
The DOE created this program as part of a national movement to reduce the 40 percent of total energy consumption in the U.S. that commercial buildings currently account for.
This effort is located at the Philadelphia Navy Yard, and is a consortium of academic institutions, federal laboratories, global industry partners and economic development agencies. These organizations are working together to make this project a leader in the sector.
The consortium is led by five co-applicants with a shared history in collaborative regional technology based economic development. These members are The Pennsylvania State University, Philadelphia Industrial Development Corporation, Ben Franklin Technology Partners of Southeastern PA, Delaware Valley Industrial Resource Center and Wharton Small Business Development Center.
The GPIC is looking to become the regional leader for energy efficient buildings and technology, and may benefit from this increased attention to the sector that was outlined in the Pike report. Specific markets within the industry are projected to grow by significant margins in the coming years, GreenBiz reported.
High-efficiency equipment, such as heating, ventilation and air conditioning (HVAC) and lighting, will become more desirable investments within the timetable given by the report, according to the news source.
According to GreenBiz, the market for high-efficiency HVAC systems for buildings will more than double to $6.4 billion between 2011 and 2017. Energy service companies will also benefit from increased investment, as this sector is expected to report a doubling of global revenues during this period.