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Carrot and Stick Approach to Energy Efficiency Solutions PDF Print E-mail
Wednesday, 23 June 2010 00:00
For so long we have viewed the availability of energy as a right, such a fundamental need that we cannot imagine our modern day life at home or in work without it. We are likely to see a quantum shift in our way of thinking. Organizations will likely have to pay for the right to use energy in future, unless they are seen as being very efficient and taking steps to improve. As such, the market for retrofits will likely accelerate, even as government incentives help to pay for such costs. Energy efficiency solutions will be front and center and innovation will spur technological advances like never seen before.


Outside of government, commercial buildings have been estimated to account for as much as one fifth of the total volume of carbon emissions clogging the air above the United States. This is a primary market for energy efficiency solutions, therefore and a variety of different market forces are at work to ensure improvements.

Leading through example, significant funding is now being made available by the government for federal building and agency improvements. The American Recovery and Reinvestment Act initiated money for federal building renovation and was soon followed by a far-reaching executive order issued by Pres. Obama. This order not only directed federal agencies to become much more sustainable over the next 10 years, but also dictated that 95% of all federal buildings must be retrofitted, renovated or subject to new construction standards accordingly.

There are a number of market driven forces at work, which should benefit the ultimate deployment of energy efficiency solutions. Building owners who adapt or retrofit their spaces to "green" standards are likely to be able to attract a premium price from leaseholders or buyers. The fact that this premium exists will likely spur additional interest and a steamroller effect sure to be greater than any federal incentive or funding.

Energy efficiency solutions will be the subject of much research from the corporate boardroom as the threat of legislation looms larger than the possibility of incentive. While credits and paybacks are considered as part of the American Clean Energy and Security Act, this legislation is so far best known for its suggestion of a carbon-based cap and trade scheme, forcing organizations to improve or be penalized.

Corporate sustainability is of high importance and energy efficiency solutions are seen as the best way to initiate improvements in the shorter term. While renewable energy sources should be the ultimate goal, we must understand that we get 95% of our energy needs from nonrenewable sources currently.

Within the 70 billion ft.² of commercial building space in the USA, potential for improvement is classified as "low hanging fruit." Heating, ventilation and air conditioning systems, together with lighting assets make up the majority of energy use needs and in the case of HVAC especially are prime candidates for retrofitting.

 
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