FOR IMMEDIATE RELEASE Tuesday 7 March 2017

5am EST, 10am GMT, 11am CET, 6pm HKT

Energy efficiency sector reflects UK’s strong economic growth

07 March 2017, London – The latest UK Energy Efficiency Trends report, published today by EEVS Insight and Bloomberg New Energy Finance, shows a continued recovery in the number of energy efficiency projects commissioned in Q4 2016. In the final quarter of 2016, 80% of respondents commissioned energy efficiency projects compared to just 67% in Q2, prior to the Brexit vote. This boost in project numbers, reported by both suppliers and consumers, correlates with strong economic growth within the wider UK economy, which saw Q4 GDP rising at its fastest rate in 12 months1.

However, while order numbers showed positive growth within the energy efficiency sector, the value of orders contracted. Much like the UK economy, which experienced a 1.5% decline in business investment during 2016, there was a Q4 fall in the percentage of projects within the highest capital cost banding. Projects valued at £500k+ dropped to 10% of all projects commissioned, compared to 22% in Q3 2016, and 24% in Q2 2016.

Consumer trends Consumers reported strong uptake of energy saving technologies this quarter, with many of the leading technologies outperforming typical (four quarter average) levels. In particular, heating, ventilation and air conditioning (HVAC) equipment saw very strong growth in Q4 2016, contained within 35% of projects commissioned in Q4, compared to the four quarter average of 11%, followed by lighting and behaviour change as the standout performers.

Consumer use of external finance for energy efficiency projects saw a significant dip this quarter, with 95% of projects being financed in-house, compared to an average of 70% over the previous four quarters. This is perhaps a reflection of the growth in smaller value projects, which saw the percentage of projects with a capital cost of less than £100k rise from 30% in Q3 to 35% in Q4.

Supplier landscape Amongst energy efficiency suppliers, supply-side industry confidence continued to increase this quarter. The market monitor – which combines trends in supplier order books, staffing levels, sales prices and government action – improved from -14 to +24 points, perhaps driven by a sustained uptick in UK-based orders.

In contrast, confidence with regards to the government’s management of energy efficiency policy continues to be increasingly negative. Despite optimism elsewhere, this quarter only 12% of suppliers considered that government action was effectively supporting the energy efficiency sector. Allied to this, since Q4 2014, confidence in the government management of the wider UK economy has continued to slide, this quarter reaching the lowest level since the survey began in Q3 2012. Responding to the results Ian Jeffries, EEVS Director, said: “This quarter’s results represent something of a double-edged sword for the sector. On the upside, supply-

side confidence increased on the back of strong order book growth. But on the flip-side, our analysis shows

that the value of consumer spending per order dipped. So whilst organisations were content to make

positive purchase decisions, a degree of ongoing caution means that the value of those purchases

tightened in the final quarter of 2016”.

Richard Singleton, Strategic Assets Director at Bellrock, commented:

"There is a steady demand for energy management solutions integrated as part of our facilities and

property management services. A degree of uncertainty of future supply (be that as a result of increased

demand on a fragile infrastructure or access to resources) coupled with the concerns in terms of exchange

rates and trade have consolidated this trend”.

About the report Compiled from the results of a confidential, quarterly consumer and supplier survey, the UK Energy Efficiency Trends report evidences industry trends and has become one of the sector’s leading sources of market intelligence. The report is delivered by a research partnership between EEVS and Bloomberg New Energy Finance, and is supported by Bird & Bird, Bellrock and Minimise Energy. Download the Volume 18, Q4 2016 report here: http://www.energyefficiencytrends.co.uk Call for new respondents New respondents are always needed to complete the survey. The ideal respondents fall into two categories:

• Directors within energy efficiency supply, consultancy and finance organisations • Those responsible for reducing energy consumption within their own organisations

There is no restriction on size of organisation. Those interested in taking part in the next survey can register using this link: http://www.energyefficiencytrends.co.uk

ENDS To find out more, please visit www.energyefficiencytrends.co.uk or follow the EEVS team on Twitter @EEVSInsight. Alternatively, please contact Lara Slavin at APC Technology Group plc: Tel: +44 (0)330 313 3266. Email: press@apcplc.com Editors’ Notes 1 Source Office of National Statistics. https://www.ons.gov.uk/economy/ The Energy Efficiency Trends Survey (Vol.18) was conducted between 10 January and 10 February 2017 and completed by 68 UK-based respondents.

The insight it provides is helping to transform levels of transparency and understanding within the sector – as well as supporting better, faster, more confident decision making in relation to commercial energy saving investments. The analysis is produced quarterly, based on survey feedback from a wide range of commercial consumers and suppliers of energy efficiency. The survey is delivered by EEVS and Bloomberg New Energy Finance and is supported by:

• Bird & Bird – international law firm with a specialism in the energy and utilities sector • Bellrock – providing property and facilities management services to over 40,000 retail,

commercial and public sector properties throughout the UK • Minimise Energy – providing clients with the manufacture, supply and installation of innovative

energy efficiency technologies EEVS is a leading global provider of performance assurance, analysis and information in relation to energy efficiency. This includes 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, an established team of energy analysts provides high quality, independent Measurement and Verification (M&V) services for all sizes and types of energy saving project. Since 2011 this team has evaluated the savings performance of hundreds of energy efficiency projects to the global good practice standard, IPMVP. www.eevs.co.uk Bloomberg New Energy Finance (BNEF) is an industry research firm focused on helping energy professionals generate opportunities. With a team of 200 experts spread across six continents, BNEF provides independent analysis and insight, enabling decision-makers to navigate change in an evolving energy economy. Leveraging the most sophisticated new energy data sets in the world, BNEF synthesises proprietary data into astute narratives that frame the financial, economic and policy implications of emerging energy technologies. Bloomberg New Energy Finance is powered by Bloomberg’s global network of 19,000 employees in 192 locations, reporting 5,000 news stories a day. Visit https://about.bnef.com/ or request more information. Bloomberg New Energy Finance PR contact: Veronika Henze via +1 646 324 1596 vhenze@bloomberg.net