Energy Efficiency Leading Renewables Sector, in Real Investment and in Jobs Potential
In the United States, energy efficiency/conservation measures to improve local buildings can create jobs, lower utility costs, and improve the environment. This potential has led to a lot of venture capital investment and mergers & acquisitions by managed service companies in various energy service companies (ESCOs). ESCOs provide energy sourcing, energy efficiency assessments, weatherization, HVAC (heating, ventilation, and air conditioning) tune-ups, cool roofs, rain barrels, and turf replacement.
U.S. buildings consume an estimated 70% of our electricity, so making them more efficiency has a big impact. Energy efficiency benefits include reduction of carbon dioxide pollution. Energy efficiency and conservation help utilities’ control power generation expenses as well as comply with new environmental regulations. And jobs will be created, jobs that offer people a career path in the utility sector, a chance to pursue rewarding work, and the ability to support a family and revive local economies. A new report entitled “Clean Power, Good Jobs. Realizing the Promise of Energy Efficiency in Los Angeles” outlines how we could get there in LA.
Due to the labor intensiveness, energy efficiency and retrofitting work generate a large number of jobs. Studies estimate that this sector would generate three times as many jobs as investment in coal. Additionally the jobs created are local, as opposed to fossil fuel investment that sends our dollars out of the area and often out of our country. As in all industries, there is huge job potential that comes from the ancillary industries in materials and technology.
The European Union is considering environment policy this year that could create jobs, cut energy bills, and improve environmental quality via maintaining buildings through retrofitting, insulation improvements, and addressing leaks. The EU Climate Commissioner, Connie Hedegaard, said that “It’s estimated that that energy efficiency alone could generate 500,000 jobs in the years up to 2020. But we also have other initiatives in the climate field where all in all there is the potential of creating 2 million new jobs up to 2020, if we get it right.
Last year’s investment activity shifted from capital-intensive industries such as biomaterials, biofuels and wind, in favor of less capital intensive sectors such as energy efficiency. M&A activity bears out the investment by managed service companies in various energy service companies. Venture Capital in the third quarter of 2011 saw the highest number of deals in the energy efficiency sector scoring 34 deals totaling $223 million.
Redfish Technology specializes in CleanTech. We recruit talented ESCO business development leaders, and help them to build out and staff their energy efficiency service teams. We work with a number of leaders in the sector nationwide and are open to taking on a more clients in this arena. Contact us today to learn how we can help you build your ESCO team.