energy efficiency trends vol. 16...the eevs/bloomberg energy efficiency trends survey (vol.16) was...

ENERGY EFFICIENCY TRENDS VOL. 16

Essential insight for consumers and suppliers of non-domestic energy efficiency in the UK

September 2016


SEPTEMBER 2016

© EEVS Insight Ltd. 2016. Developed in partnership with Bloomberg Finance L.P.2016.

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SEPTEMBER 2016



CONTENTS

SECTION 1. INTRODUCTION ________________________________ 4

SECTION 2. EXECUTIVE SUMMARY __________________________ 5

2.1. SUPPLIER TRENDS .................................................................................. 5

2.2. CONSUMER TRENDS ............................................................................... 6

SECTION 3. SUPPLIER TRENDS _____________________________ 7

3.1. THE ORDER BOOK ................................................................................... 7

3.2. STAFF NUMBERS ..................................................................................... 8

3.3. SALE PRICES............................................................................................ 8

3.4. INDUSTRY RISK ....................................................................................... 9

3.5. GOVERNMENT EFFECTIVENESS ......................................................... 10

SECTION 4. CONSUMER TRENDS __________________________ 11

4.1. TECHNOLOGIES & MEASURES............................................................. 11

4.2. PROPERTY TYPES ................................................................................. 12

4.3. PROJECT COSTS ................................................................................... 13

4.4. PROJECT FINANCE ................................................................................ 13

4.5. FINANCIAL PAYBACK ............................................................................. 14

4.6. MEASUREMENT AND VERIFICATION ................................................... 14

4.7. CONSUMERS NOT UNDERTAKING ENERGY EFFICIENCY ................. 15

SECTION 5. SPECIAL FEATURE: POST-BREXIT IMPACTS ON ENERGY EFFICIENCY __________________________ 16

5.1. SUPPLIERS ............................................................................................. 16

5.2. CONSUMERS .......................................................................................... 19

APPENDICES __________________________________________________ 22

APPENDIX A: METHODOLOGY ______________________________ 22

APPENDIX B: SUPPLIER RESPONDENTS______________________ 23

APPENDIX C: CONSUMER RESPONDENTS ____________________ 24

ABOUT US __________________________________________________ 25

CONTACT US __________________________________________________ 26

______________________________________________________________ 27


SEPTEMBER 2016



TABLE OF FIGURES Figure 1: Market Monitor – tracking industry confidence, Q3 2012 – Q3 2016(e) ...... 5

Figure 2: Consumers commissioning efficiency projects, Q3 2012 – Q2 2016 .......... 6

Figure 3: Trends in orders from national customers, Q3 2012 – Q3 2016(e) ............. 7

Figure 4: Trends in orders from overseas customers, Q3 2012 – Q3 2016(e) ........... 7

Figure 5: Trends in the number of staff employed, Q3 2012 – Q3 2016(e) ................ 8

Figure 6: Trends in sale prices achieved, Q3 2012 – Q3 2016(e) .............................. 8

Figure 7: Key issues of concern to energy-efficiency suppliers, Q2 2016 .................. 9

Figure 8: Trends in key issues of concern, Q3 2012 – Q2 2016 ................................ 9

Figure 9: Trends in industry views on energy efficiency policy, Q3 2012 – Q2 2016 10

Figure 10: Industry views of the wider economy’s management, Q3 2012 – Q2 2016 ......................................................................................................... 10

Figure 11: Uptake of energy efficiency technologies, Q2 2016 v four-quarter average .................................................................................................... 11

Figure 12: Trends in top technologies for consumer uptake, Q3 2012 – Q2 2016 ...... 11

Figure 13: Breakdown of commissioned projects by property type, Q2 2016 ............. 12

Figure 14: Trends of commissioned projects by property type, Q3 2012 – Q2 2016 .. 12

Figure 15: Trends in capital costs, Q3 2012 – Q2 2016 ............................................. 13

Figure 16: Trends in finance models, Q3 2012 – Q2 2016 ......................................... 13

Figure 17: Trends in expected payback periods, Q3 2012 – Q2 2016 ....................... 14

Figure 18: Trends in the use of good practice M&V, Q3 2012 – Q2 2016 .................. 14

Figure 19: Consumer reasons for lack of efficiency uptake, Q2 2016 v four-quarter average .................................................................................................... 15

Figure 20: Supplier business impact following the vote to leave the EU .................... 16

Figure 21: Expected impact on key business areas over the next 12 months ............ 17

Figure 22: Views on the principal driver for results in Figures 20 and 21 above ......... 17

Figure 23: Supplier views on what Brexit negotiations should aim for – in relation to EU-derived energy efficiency legislation (such as ESOS and EPBD) ....... 18

Figure 24: Suggested focus areas for the UK Government in the wake of the Brexit vote .......................................................................................................... 18

Figure 25: Consumer business impact following the vote to leave the EU ................. 19

Figure 26: Expected impact on consumer business costs over the next 12 months ... 19

Figure 27: Views on the principal driver for results in Figures 25 and 26 above ......... 20

Figure 28: Consumer views on what Brexit negotiations should aim for – in relation to EU-derived energy efficiency legislation (such as ESOS and EPBD) ....... 20

Figure 29: Suggested focus areas for the UK Government in the wake of the Brexit vote .......................................................................................................... 21

Figure 30: Who completed the survey? Q2 2016 ....................................................... 22

Figure 31: Breakdown of respondents by supplier type, Q2 2016 .............................. 23

Figure 32: Supplier respondents’ organisation size (no. of employees), Q2 2016 ...... 23

Figure 33: Consumer respondents by sector, Q2 2016.............................................. 24

Figure 34: Consumer respondents’ organisation size (no. of employees), Q2 2016 .. 24


SEPTEMBER 2016



SECTION 1. INTRODUCTION

Welcome to the latest edition of UK Energy Efficiency Trends, the leading source of market

insight for the energy efficiency sector. This edition examines consumer and supplier trends in

the second quarter of 2016 (March-June) and provides invaluable insight on the immediate impact

of the UK’s decision to exit the EU.

Last quarter’s survey results were clear; respondents felt strongly that the energy efficiency sector

would be best served if the UK remained in the EU. As we know, the UK electorate took a

contrary view. So, what next?

This is the billion dollar question that we asked in this quarter’s industry survey. And perhaps

unsurprisingly the answer we got signalled ‘uncertainty’. More importantly, as a result of this

uncertainty, both consumers and suppliers expressed concern around how this is expected to

impact energy saving activities and investments – whether it be a cooling off of customer demand

(for suppliers), or higher technology and installation costs (for consumers). The sector-wide

outlook has certainly been damped, confidence has certainly been hit on both sides (see our post

Brexit supply-side results on page 16, consumer-side on page 19) and, as a sector, we are keen

for political and economic certainty to be restored.

In other news – and re-focusing on core business for a minute – this quarter’s results have also

shown some material shifts in consumer buying preferences. Until now, lighting has been the

dominant technology of choice. It is still top of the pile, but consumer interest in BEMS and Smart

Metering has shot up considerably. Lighting looks to have taken much of the hit and we saw an

uncharacteristically sharp dip this quarter. If this trend were to continue, these performance

management-based technologies could potentially challenge lighting for the top spot in the

forthcoming quarters. Watch this space!

So, it is an understatement to say that there’s a lot going on in the UK market at the moment! In

this context, we hope that the objective intelligence that Energy Efficiency Trends aims to deliver

is more helpful and more insightful than ever.

Tom Rowlands-Rees

Bloomberg NEF

Ian Jeffries

EEVS Insight


SEPTEMBER 2016



SECTION 2. EXECUTIVE SUMMARY The EEVS/Bloomberg Energy Efficiency Trends Survey (Vol.16) was completed

by 89 UK-based respondents (55 consumer organisations and 34 suppliers),

between 11 July and 12 August, 2016. Their answers relate to the situation in the

second quarter.

2.1. SUPPLIER TRENDS

• Supply-side industry confidence continued to drop off this quarter and is now firmly in

negative territory. Following the all-time low of the previous quarter, the market monitor –

which combines trends in supplier order books, staffing levels, sale prices and government

action – fell further from -4 to -38 points, perhaps as post-Brexit concerns took hold.

• This decline in industry confidence continues to be driven by a downward trend in UK orders

(Figure 3) – with around three-quarters of suppliers now reporting either stagnant of declining

order books – and a further decline in confidence in respect of the government’s

management of energy efficiency policy (Figure 9).

• Key concerns for the sector remain largely constant – customer demand is still the dominant

issue for 38% of suppliers, followed by national competition (26%) and raising finance (12%).

• Analysis of our post-Brexit poll also found that:

– More than half of suppliers (56%) considered that the decision to leave the EU had

negatively impacted their business, with only 35% reporting ‘business as usual’ activity

following the referendum result.

– Over the next 12 months, 50% of suppliers considered that the UK exit will mean reduced

levels of customer demand, with 29% also expecting their overheads to rise, and 29%

expecting reduced business investment.

– In negotiating the UK exit from the EU, six out of 10 suppliers considered that energy-

related regulations should be retained in full, with 35% preferring some revision and

scaling back. Only 3% of suppliers consider that EU-derived regulation should be entirely

removed from the UK statute book.

Figure 1: Market Monitor – tracking industry confidence, Q3 2012 – Q3 2016(e)

Source: EEVS, BNEF. Note: based on weighted confidence indicators from Figures 3, 4, 5, 6, and 9.

Zero represents neutrality. 500/-500 indicate the maximum degrees of positive/negative sentiment possible.

-300

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3(e)

2012 2013 2014 2015 2016

Positive sentiment(max = 500 points)

Negative sentiment(min = -500 points)


SEPTEMBER 2016



2.2. CONSUMER TRENDS

• High efficiency lighting saw one of the biggest drops in deployment this quarter and, although

it still remains the leading technology deployed, it was significantly down (59%) on its rolling

four-quarter average (70%). It was a similar story for solar PV and behaviour change, which

both saw material declines against their four-quarter averages.

• By contrast, building energy management systems (BEMS) – now the second most popular

technology behind high efficiency lighting – and smart metering were the two main

beneficiaries, both seeing a material increase in uptake. It will be interesting to see if this

short-term trend away from lighting continues in the coming quarters.

• Volatility in capital spending continued this quarter, with a significant increase in larger

projects (GBP 500,000+) being reported this quarter. This increase pushed up median project

costs from the GBP 47,000 last quarter to around GBP 145,000 this quarter (and perhaps

reflecting the move away from lighting and behaviour change, and towards BEMS and smart

metering).

• Project finance saw a return to the longer-term trend line this quarter, with a broad 70/30 split

reported between use of in-house capital and third-party finance, respectively.

• After a period of tightening payback expectations, this quarter has seen something of a

correction with the median payback rising towards four years (from three years last quarter).

• Analysis of our post-Brexit poll also found that:

– For 73% of consumers, it remained ‘business as usual’ following the referendum. But

25% did report either a minor or major impact on their energy saving investment plans.

– Looking ahead to the next 12 months, only 4% of consumers considered that the UK exit

would lead to lower energy prices, with 55% expecting increases. Views were similar in

relation to the cost of procuring energy efficiency technologies, with only 2% expecting

cost reductions, 42% expecting no material change, and 32% expecting price increases.

– In terms of negotiating the UK exit, only 6% of consumers felt that EU policy and

regulation (as it relates to energy efficiency) should be removed entirely; 55% consider it

should be revised and scaled back; 39% that it should be retained as it is.

– Finally, the main advice to UK policy-makers from consumer respondents was for the

government to take action to reduce economic uncertainty and to focus on UK energy

security and driving energy efficiency.

Figure 2: Consumers commissioning efficiency projects, Q3 2012 – Q2 2016

Source: EEVS, BNEF. Note: shows the proportion of respondents who have commissioned (or plan to

commission) projects in a given quarter.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2012 2013 2014 2015 2016


SEPTEMBER 2016



SECTION 3. SUPPLIER TRENDS

3.1. THE ORDER BOOK

Figure 3: Trends in orders from national customers, Q3 2012 – Q3 2016(e)

Source: EEVS, BNEF. Note: the confidence indicator is an input to the market monitor in Figure 1. Zero

represents neutrality. 500/-500 indicate the maximum degrees of positive/negative sentiment possible.

Figure 4: Trends in orders from overseas customers, Q3 2012 – Q3 2016(e)



-300

-240

-180

-120

-60

0

60

120

180

240

300

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2012 2013 2014 2015 2016

Fall significantly

Fall slightly

Remain constant

Increase slightly

Increase significantly

Confidence Indicator(RH axis)

-300

-240

-180

-120

-60

0

60

120

180

240

300

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2012 2013 2014 2015 2016

Fall significantly

Fall slightly

Remain constant

Increase slightly




SEPTEMBER 2016



3.2. STAFF NUMBERS

Figure 5: Trends in the number of staff employed, Q3 2012 – Q3 2016(e)



3.3. SALE PRICES

Figure 6: Trends in sale prices achieved, Q3 2012 – Q3 2016(e)



-300

-240

-180

-120

-60

0

60

120

180

240

300

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2012 2013 2014 2015 2016

Fall significantly

Fall slightly

Remain constant

Increase slightly



-300

-240

-180

-120

-60

0

60

120

180

240

300

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2012 2013 2014 2015 2016

Fall significantly

Fall slightly

Remain constant

Increase slightly




SEPTEMBER 2016



3.4. INDUSTRY RISK

Figure 7: Key issues of concern to energy-efficiency suppliers, Q2 2016

Source: EEVS, BNEF. Note: each supplier respondent was asked to select their primary issue of concern.

Therefore results sum to 100%.

Figure 8: Trends in key issues of concern, Q3 2012 – Q2 2016

Source: EEVS, BNEF. Note: each supplier respondent was asked to select their primary issue of concern,

therefore results sum to 100% in each period.

Customerdemand

38%

Nationalcompetition

26%

Raisingfinance

12%

Subsidy/policyuncertainty, 6%

Regulation6%

Pressureto reduce

costs6%

Internationalcompetition, 3%

Other3%

Customer demand

National competition

Raising finance

Subsidy/policy uncertainty

Regulation

Pressure to reduce costs

International competition

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2012 2013 2014 2015 2016

Other

International competition

Raising finance

Competition - national

Staff costs

Regulation

National competition

Customer demand


SEPTEMBER 2016



3.5. GOVERNMENT EFFECTIVENESS

Figure 9: Trends in industry views on energy efficiency policy, Q3 2012 – Q2 2016



Figure 10: Industry views of the wider economy’s management, Q3 2012 – Q2 2016

Source: EEVS, BNEF. Note: CI = confidence indicator. The dotted line represents the CI from Figure 9 which

is overlaid here for comparison with views on the wider economy. Zero represents neutrality. 500/-500 indicate

the maximum degrees of positive/negative sentiment possible.

-300

-240

-180

-120

-60

0

60

120

180

240

300

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2012 2013 2014 2015 2016

Very ineffective

Ineffective

Neutral

Effective

Very effective


-300

-240

-180

-120

-60

0

60

120

180

240

300

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2012 2013 2014 2015 2016

Very ineffective

Ineffective

Neutral

Effective

Very effective


Energy Efficiency CI(RH axis)


SEPTEMBER 2016



SECTION 4. CONSUMER TRENDS

4.1. TECHNOLOGIES & MEASURES

Figure 11: Uptake of energy efficiency technologies, Q2 2016 v four-quarter average

Source: EEVS, BNEF. Note: ranks technologies according to the proportion of consumers who commissioned

a project in each technology out of the overall number of consumers commissioning projects. PFC = power

factor correction.

Figure 12: Trends in top technologies for consumer uptake, Q3 2012 – Q2 2016

Source: EEVS, BNEF. Note: shows the proportion of respondents who commissioned a project in the

respective category out of the total number of respondents who commissioned a project. Smart metering was

only tracked from Q4 2014 onward.

0% 20% 40% 60% 80% 100%

Other

Energy Recovery

Heat Pump - Air Source

Heat Pumps - Ground Source

Heat Pumps - Water Source

High Speed Hand Dryers

Solar - Thermal

Optimisation - of set-points and controls

Compressed Air Equipment

Heat Exchangers

HVAC

Power Management - Voltage Optimisation, PFC

Refrigeration - Controls

Refrigeration - Optimisation

Combined Heat and Power (CHP)

Radiant and Warm Air Heaters

Refrigeration - High Efficiency Unit

Motors and Drives

Boiler - High Efficiency Unit

Building Fabric - Glazing, Insulation, Materials

Solar - Photovoltaic

M&T / Performance Management Software

Boiler - Controls

Boiler - Optimisation

Cooling and Air Conditioning

Behaviour Change

Smart Metering

Lighting - Controls

Building Energy Management System (BEMS)

Lighting - High Efficiency

Q2 2016

4Q average

Building Energy Management System

Lighting - Controls

Lighting - High Efficiency

Smart Metering

Behaviour Change

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2012 2013 2014 2015 2016


SEPTEMBER 2016



4.2. PROPERTY TYPES

Figure 13: Breakdown of commissioned projects by property type, Q2 2016

Source: EEVS, BNEF

Figure 14: Trends of commissioned projects by property type, Q3 2012 – Q2 2016

Source: EEVS, BNEF

Office27%

Public building11%

School6%

University, 5%Manufacturing, 8%

Industrial, 3%

Leisure Centre / Sports, 3%

Hospital8%

Retail - High Street, 3%

Retail - Out of Town, 2%

Data Centre8%

Laboratory5%

Residential, 2%

Warehousing and Distribution, 2%

Hotel, 2%

Street / Highway Lighting Infrastructure, 2%

Other8%

Office

Public building

School

Manufacturing

Leisure Centre / Sports

Hospital

Retail - Out of Town

Data Centre

Office

Public building

School & University

Manufacturing & Industrial

Retail


Hospital

Other

0%

20%

40%

60%

80%

100%


2012 2013 2014 2015 2016

Other

Retail

Hospital


Manufacturing & Industrial

School & University

Public building

Office


SEPTEMBER 2016



4.3. PROJECT COSTS

Figure 15: Trends in capital costs, Q3 2012 – Q2 2016

% projects in each band £ Thousands

Source: EEVS, BNEF. Note: the line shows the cost trend for energy efficiency projects over time based on

the estimated median.

4.4. PROJECT FINANCE

Figure 16: Trends in finance models, Q3 2012 – Q2 2016

Source: EEVS, BNEF

0

40

80

120

160

200

0%

20%

40%

60%

80%

100%


2012 2013 2014 2015 2016

Unknown

£500K+

£100-500K

£50-100K

£10-50K

<£10K

Zero

Median

(RH-axis)

0%

20%

40%

60%

80%

100%


2012 2013 2014 2015 2016

Other

Unknown

Supplier-arranged

Third party finance

Combination

In-house


SEPTEMBER 2016



4.5. FINANCIAL PAYBACK

Figure 17: Trends in expected payback periods, Q3 2012 – Q2 2016

% projects in each band Number of years

Source: EEVS, BNEF. Note: the line shows the expected payback trend for energy efficiency projects based

on the estimated median.

4.6. MEASUREMENT AND VERIFICATION

Figure 18: Trends in the use of good practice M&V, Q3 2012 – Q2 2016

Source: EEVS, BNEF. Note: M&V = measurement and verification.

0

2

4

6

8

10

0%

20%

40%

60%

80%

100%


2012 2013 2014 2015 2016

Unknown

10 + years

5-10 years

3-5 Years

1-3 years

<1 year

Median

(RH-axis)

0%

20%

40%

60%

80%

100%


2012 2013 2014 2015 2016

No

Unknown

Yes


SEPTEMBER 2016



4.7. CONSUMERS NOT UNDERTAKING ENERGY EFFICIENCY

Figure 19: Consumer reasons for lack of efficiency uptake, Q2 2016 v four-quarter average

Source: EEVS, BNEF. Note: respondents not commissioning projects may have cited multiple reasons. The

chart shows the proportion of respondents in each category out of overall respondents, not commissioning

projects. Results therefore do not sum to 100.

0% 20% 40% 60% 80% 100%

Other

Lack of trust in the industry

Negative impact on core operations

Preference for renewable energy (e.g. solar)

Subsidy uncertainty

Lack of affordable finance

Senior management not bought in

Wider macro-economic uncertainty

Uncertainty over the financial benefits / business case

Lack of resource

Buildings are landlord-owned, so little upside

Energy efficiency has already been undertaken

Higher priorities elsewhere

Future projects are planned

Q2 2016 (negative impact)

4Q average

Q2 2016 (industry neutral)


SEPTEMBER 2016



SECTION 5. SPECIAL FEATURE: POST-BREXIT IMPACTS ON ENERGY EFFICIENCY

The momentous decision for the UK to leave the EU has been made and it is expected

to have far reaching consequences, not least on the UK energy efficiency sector.

Looking back at Vol. 15, the decision to leave the EU is not one the majority of the UK

energy efficiency industry would have made, so in this edition we have asked suppliers

and consumers for their views on ‘what next?’ in this brave new world; how the decision

is likely to impact them over the next 12 months; and what the government should do

next to support the sector. The results are set out below:

5.1. SUPPLIERS

Figure 20: Supplier business impact following the vote to leave the EU

Source: EEVS, BNEF. Note: suppliers were asked: ‘to what extent has it been business as usual for your

organisation following the vote to leave the EU?’

No change

35%

Minor impact53%

Major impact

3%

Don’t know9%


SEPTEMBER 2016



Figure 21: Expected impact on key business areas over the next 12 months

Source: EEVS, BNEF. Note: suppliers were asked: ‘looking ahead over the next 12 months, how do you think

the Brexit decision will impact your organisation in respect of the following: customer demand, cost overheads,

sale prices, investment in growing the business, new staff recruitment?’.

Figure 22: Views on the principal driver for results in Figures 20 and 21 above

Source: EEVS, BNEF

3%

29%15% 12%

3%

35%

56%

68%

44% 65%

50%

9% 9%

29%21%

12% 6% 9% 15% 12%

Customerdemand

Costoverheads

Sale prices Investment ingrowing the

business

New staffrecruitment

Don't know

Decrease

No impact

Increase

6%

12%

35%

29%

29%

29%

6%

29%

35%

41%

29%

65%

None of the above / business as usual

Other

Risk of reduced access to EU markets

Lack of political governance / leadership

Currency volatility

General economic uncertainty

Primary driver

All of the above


SEPTEMBER 2016



Figure 23: Supplier views on what Brexit negotiations should aim for – in relation to EU-

derived energy efficiency legislation (such as ESOS and EPBD)

Source: EEVS, BNEF

Figure 24: Suggested focus areas for the UK Government in the wake of the Brexit vote

Source: EEVS, BNEF. Note: suppliers were asked if they had any specific suggestions for the UK

Government on what it could do now to address sector-related concerns or minimise negative impacts of a

Brexit. Responses were grouped into six broad categories shown above.

Revise and scale

back35%

Retain entirely

62%

Remove3%

3%

3%

3%

6%

9%

15%

Other

Focus on long term strategy

Remove red tape

Provide clarity on status of existing regulation

Focus on stability (retention of current policy)

Provide government support/incentives


SEPTEMBER 2016



5.2. CONSUMERS

Figure 25: Consumer business impact following the vote to leave the EU

Source: EEVS, BNEF. Note: consumers were asked: ‘to what extent has it been business as usual for your

organisation (in relation to energy efficiency programmes) following the vote to leave the EU?’

Figure 26: Expected impact on consumer business costs over the next 12 months

Source: EEVS, BNEF. Note: consumers were asked: ‘looking ahead over the next 12 months, how do you

think the Brexit decision will impact your organisation in respect of the following: energy costs, energy

efficiency costs?’

No change

73%

Minor impact19%

Major impact

6%

Don’t know2%

55%

32%

36%

42%

4%

2%

6%

25%

Energy costs Energy efficiency costs

Don't know

Decrease

No impact

Increase


SEPTEMBER 2016



Figure 27: Views on the principal driver for results in Figures 25 and 26 above

Source: EEVS, BNEF

Figure 28: Consumer views on what Brexit negotiations should aim for – in relation to EU-

derived energy efficiency legislation (such as ESOS and EPBD)

Source: EEVS, BNEF

4%

6%

23%

25%

23%

23%

23%

23%

17%

4%

26%

28%

45%

47%

None of the above / business as usual

Other

Risk of reduced access to EU markets

Lack of political governance / leadership

Currency volatility

General economic uncertainty

Primary driver

All of the above

Revise and scale

back55%

Retain entirely

39%

Remove6%


SEPTEMBER 2016



Figure 29: Suggested focus areas for the UK Government in the wake of the Brexit vote

Source: EEVS, BNEF. Note: consumers were asked if they had any specific suggestions for the UK

Government on what it could do now to address sector-related concerns or minimise negative impacts of

Brexit. Responses were grouped into six broad categories shown above.

4%

4%

4%

9%

11%

11%

Other

Hold a second referendum

Scientific approach to regulation (consult industry experts)

Focus on energy efficiency and demand side management

Focus on energy security

Reduce uncertainty (negotiate well / long term plan)


SEPTEMBER 2016



APPENDICES Appendix A: Methodology

The EEVS/Bloomberg Energy Efficiency Trends Survey (Vol.16) was conducted between 11 July

and 12 August, 2016, and completed by 89 UK-based respondents (55 consumer organisations

and 34 suppliers).

This is the 16th in a series of reports showing industry trends in non-residential energy efficiency.

As the report series evolves, we continue to make minor tweaks.

Initially, the report covered a broad range of European countries, but since Volume 8, it has

presented UK-based results only, as these consistently accounted for the bulk of data received.

In focusing the report on a single country with better data coverage, we were able to present

cleaner, more robust results. This coincided with a revamp of the analysis including – among other

modifications – the introduction of a set of time series charts.

The latest modification to the series is to produce a fully annotated annual report at the start of each

year, with the three remaining quarterlies taking the form of a chart pack. This report is our second

quarterly with reduced commentary. Please reach out should you wish to discuss any of the trends

observed in the charts.

Figure 30: Who completed the survey? Q2 2016

Source: EEVS, BNEF

Consumer62%

Supplier38%


SEPTEMBER 2016



Appendix B: Supplier respondents

Figure 31: Breakdown of respondents by supplier type, Q2 2016

Source: EEVS, BNEF

Consultancy services

44%

ESCO18%

BMS / controls, 12%

CHP, 9%

Finance6%

HVAC, 6%

Lighting3%

Monitoring & targeting, 3%

Consultancy services

ESCO

BMS / controls

CHP

Finance

HVAC

Lighting

Monitoring & targeting

Figure 32: Supplier respondents’ organisation size (no. of employees), Q2 2016

Source: EEVS, BNEF

23%

32%

21%

6%

3%

15%

Less than 10

10-50

51-250

251-500

501-1000

More than 1000


SEPTEMBER 2016



Appendix C: Consumer respondents

Figure 33: Consumer respondents by sector, Q2 2016

Source: EEVS, BNEF

Figure 34: Consumer respondents’ organisation size (no. of employees), Q2 2016

Source: EEVS, BNEF

Health16%

Local or Regional Authority

16%

University5%

Central Government Agency, 2%

School/College, 2%

Other5%

Leisure and Recreation, 5%

Services & Storage, 4%

Retail & Wholesale, 4%

Property and Real Estate, 2%

Food and Drink, 2%

Manufacturing11%

Construction & Engineering

7%

Other4%

Transportation, 4%Other11%

Public / Institutional

Commercial

Industrial

Other

11%

9%

6%

9%

65%

Less than 50

50 - 250

251-500

501-1000

More than 1000


SEPTEMBER 2016



ABOUT US __________________________________________________

About EEVS

EEVS is the UK’s leading provider of performance assurance, analysis and information services in relation

to energy efficiency. Our performance assurance services include working with clients to devise and develop

performance management systems and strategies; procurement policies and tender evaluations; due

diligence on performance contracts and guarantees; performance and financial risk analysis.

Alongside this, our established team of energy analysts provide high quality, independent Measurement and Verification (M&V) services

for all sizes and types of energy saving projects. Since 2011 we have evaluated the savings performance of hundreds of energy efficiency

projects to the global good practice standard, IPMVP. Our trusted analysis helps suppliers to credibly prove their project’s or technology’s

saving performance, whilst providing customers with much-needed certainty around their investment’s return and value for money.

EEVS wider market information and research services – in particular the Energy Efficiency Trends publications – aim to improve the

attractiveness, transparency and investability of the energy efficiency market through the provision of reliable market-level performance

and trend information. For further details about EEVS and our services, please visit www.eevs.co.uk

About Bloomberg New Energy Finance

Bloomberg New Energy Finance (BNEF) is the definitive source of insight, data and news on the

transformation of the energy sector. BNEF has staff of more than 200, based in London, New York,

Beijing, Cape Town, Hong Kong, Singapore, Munich, New Delhi, San Francisco, São Paulo, Sydney,

Tokyo, Washington D.C., and Zurich.

BNEF Insight Services provide financial, economic and policy analysis in the following industries and markets: wind, solar,

bioenergy, geothermal, hydro & marine, gas, nuclear, carbon capture and storage, energy efficiency, digital energy, energy

storage, advanced transportation, carbon markets, REC markets, power markets and water. BNEF’s Industry Intelligence Service

provides access to the world’s most comprehensive database of assets, investments, companies and equipment in the same

sectors. The BNEF News Service is the leading global news service focusing on finance, policy and economics for the same

sectors. The group also undertakes custom research on behalf of clients and runs senior-level networking events, including the

annual BNEF Summit, the premier event on the future of the energy industry.

For more information please visit about.bnef.com

http://www.eevs.co.uk/

http://about.bnef.com/


SEPTEMBER 2016



CONTACT US

Ian Jeffries

[email protected]

+44 (0) 33 0313 8488

EEVS Insight Ltd

29 Long Lane

London

SE1 4PL

Tom Rowlands-Rees

[email protected]

+44 (0) 20 3525 4144

Nicole Aspinall

[email protected]

+44 (0) 20 3525 4653

Bloomberg New Energy Finance

City Gate House,

39-45 Finsbury Square

London

EC2A 1PQ

© EEVS insight Ltd. 2016. Developed in partnership with Bloomberg New Energy Finance

(Bloomberg Finance L.P. 2016). No portion of this document may be reproduced, scanned into an

electronic system, distributed, publicly displayed or used as the basis of derivative works without

the prior written consent of the joint partners.

For more information on terms of use, please contact [email protected].

Join the Energy Efficiency Trends Community

Register at www.eevs.co.uk/join-community.html to join the Energy Efficiency Trends Community and receive free quarterly

Energy Efficiency Trends reports direct to your email inbox.

By registering you will also be invited to complete the quarterly surveys upon which the research is based. If you are a consumer,

financer or supplier of energy efficiency consultancy, products or services, your input would be greatly appreciated. Your

responses will be treated anonymously and aggregated to form the published Energy Efficiency Trends report.

To find out more about Energy Efficiency Trends, or to download previous editions please visit our website:

www.energyefficiencytrends.com

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Energy Efficiency Trends Vol. 16

September 2016

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