ENERGY EFFICIENCY INDICATOR1].pdf4. Institute for Building Efficiency | . EEI SURVEY SCOPE. 13 countries, 8 languages, 3868 respondents. 1,692 103. 857. 77. 428 450. 155

Institute for Building Efficiency | www.InstituteBE.com 1 Institute for Building Efficiency | www.InstituteBE.com Copyright 2011 Johnson Controls, Inc.1

ENERGY EFFICIENCY INDICATOR2011 Global Results

Institute for Building Efficiency | www.InstituteBE.com

A global survey of decision makers responsible for energy use in buildings

THE ENERGY EFFICIENCY INDICATOR

Fifth annual survey led by the Institute for Building Efficiency, an initiative of Johnson Controls providing information and analysis of technologies, policies, and practices for efficient, high performance buildings and smart energy systems around the world.

2

1,249 1,146

2,5672,882

3,868

2007 2008 2009 2010 2011

North AmericaEuropeIndiaChina

(7 languages)

North AmericaIndiaBrazil

(2 languages)

North America

(English only)

North America

(English only)

North AmericaEuropeIndiaChina

AustraliaBrazil

South Africa

(8 languages)

Institute for Building Efficiency | www.InstituteBE.com 3

EEI PARTNERS

Thank you to our global partners:

And our in-country strategic partners:


EEI SURVEY SCOPE13 countries, 8 languages, 3868 respondents

4

1,692

103

857

77

428

450

155

More respondents and more geographies


EEI RESPONDENTS

Respondents by sector, job title and facility size:

Industrial18%

Commercial58%Institutional

25%

Facility Managers

24%

VPs23%

Owner/Proprietor

22%

C-level13%

Other13%

>500 kSF40%

<50 kSF28%

50 -500 kSF32%

1. Must have budget responsibility for their organization’s facilities.

2. Job responsibilities must include reviewing or monitoring energy usage, and/or proposing or approving initiatives to make organization’s facilities more efficient.

Criteria:

A look into the minds of decision-makers of all types


THE PATH TO ENERGY EFFICIENCYRespondents shed light on the journey and the destination

1. Markets moving toward energy efficiencyThe 2011 survey shows an increasing emphasis on managing energy and setting goals. The motivations are changing.

2. Obstacles along the wayMarket barriers identified by respondents reveal a path to efficiency, with single organizations and entire regions at different stages of the journey.

3. Success factorsThe responses reveal four attributes of organizations that invest more in efficiency.


ENERGY EFFICIENCY INDICATOR2011 GLOBAL RESULTS

Markets moving toward energy efficiency

7

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ENERGY IMPORTANT AROUND THE WORLDIndia and China respondents express most interest

Respondents identifying energy management as extremely or very important

Global U.S. / Canada Europe China India

60%52% 55%

79%85%

70% 66% 61%

84% 88%

0%

20%

40%

60%

80%

2010 2011


2010 Global

2011 Global

Drivers of efficiency Europe India China US/CA

Energy cost savings

Gov’t/utility incentives/rebates

Enhanced brand or public image

N/A Increasing energy security

Greenhouse gas reduction

Existing policy

9

CHANGING MOTIVES FOR ENERGY EFFICIENCYCost, incentives, public image top the list

1

2

3

111

2

3

3

2

2

3

How significant are the following in your organization's energy efficiency decisions?

1

2

3

1

2

3

4

4

6

4

6


EXPECTATIONS OF ENERGY PRICE INCREASESMore respondents expecting increases than a year ago

Do you believe the price of energy will increase over the next 12 months?

11% price increase

expected on average

Global U.S. / Canada Europe China India

69% 68% 64%

88%79%81% 80% 80%

93%83%

0%

20%

40%

60%

80%

2010 2011


INCENTIVES GAIN MARKET TRACTIONIncrease in both experience and prioritization of incentives

41%

18%

53%

29%

0% 20% 40% 60%

Influence of Gov't Incentives on energy efficiency decisions is extremely or very significant

Using or considering grants, rebates, or tax credits for financing

2011

2010


19%

37%

12

GROWTH IN GREEN BUILDING CERTIFICATIONOne indicator of brand/public image driving decisions

2010

2011

Percentage of respondents with at least one green-certified building

An additional 32% have incorporated green building elements without certifying

Certifying existing buildings now more common than new buildings


MEASURES ADOPTED BY CATEGORYLarger facilities more likely to implement projects

12%

12%

8%

20%

20%

42%

48%

62%

4%

24%

21%

28%

35%

42%

63%

70%

1%

31%

34%

44%

51%

54%

75%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

None

Onsite renewable energy

Smart grid or smart building technology

Building envelope improvements

Energy supply and/or peak demand management

Behavioral improvements

HVAC and/or controls improvements

Lighting improvements

>500,000 sf

50,000-500,000 sf

< 50,000 sf

Which of the following energy efficiency measures has your company/organization adopted in the last 12 months?


WIDE RANGE OF PROJECTS PURSUED52 measures (energy efficiency, renewables, demand mgmt)

61% Switched to energy efficient bulbs, lamps, ballasts or fixtures

39% Installed occupancy- or photo- sensors

38% Adjusted HVAC control setpoints or schedules

37% Increased awareness of facility occupants to reduce energy use

36% Replaced inefficient equipment before the end of its useful life

29% Upgraded or improved an existing building management system

15% Solar Electric


TECHNOLOGY EXPECTATIONS -10 YEAR HORIZONDifferent ideas about markets for different regions

0% 10% 20% 30% 40% 50% 60%

Biomass generators or co-gen units

Concentrating solar power (CSP)

Geothermal / ground source heat pumps

Solar photovoltaics (PV)

Smart building technology

Lighting technologies

US / Canada

Europe

China

India

Which of the following on-site technologies do you expect to have the greatest increase in market adoption over the next ten years? (select up to three)


ENERGY EFFICIENCY INDICATOR2011 GLOBAL RESULTS

Obstacles along the way

16



BARRIERS TO EFFICIENCYTechnical, organizational, and financial challenges

What is the top barrier to pursuing energy efficiency at your company/organization?

8%

8%

9%

9%

12%

19%

30%

0% 10% 20% 30% 40%

No organizational ownership/dedicated attention to managing energy efficiency

Landlord/tenant split incentives

Lack of technical expertise to evaluate or execute projects

Lack of awareness about opportunities

Uncertainty regarding savings/performance

Insufficient payback/ROI

Lack of funding to pay for improvements


OBSTACLES IN THE PATHOrganizations and regions at different points along the way

What is the top barrier to pursuing energy efficiency at your company/organization?

7%

8%

12%

17%

6%

10%

16%

14%

10%

13%

16%

14%

21%

19%

17%

16%

38%

30%

18%

17%

Technicalexpertise

Awareness Certainty of savings

Financial criteria

Availablecapital

India

China

Europe

U.S. /Canada


ENERGY EFFICIENCY INDICATOR 2011 GLOBAL RESULTS

Success Factors

19



1) GOAL-SETTING IS COMMONPLACEThree of four respondents have some form of reduction goal

Which of the following best describes your company/organization’sgoals for the next 12 months?

24% 27%

34% 29%

39%33%

3% 10%

Energy Carbon

No goal, not reducing

No goal but reducing

Internal Goal

Public Goal

76% of respondents have either an energy or carbon

reduction goal


2) FREQUENT ANALYSIS OF ENERGY DATASmart building technology converts data to actionable information

How frequently does your company/organization collect and use energy usage data?

Those who have implemented smart grid/building technology

are 2.5 times more likely to review data frequently

U.S. respondents say smart building and lighting technology

will see greatest increase in market adoption in next decade.

43%

15%

40%

43%

12%

37%

5% 5%

Measure & Record Review & Analyze

Don't know

Quarterly or less

Monthly

At least weekly


3) ORGANIZATIONAL CAPACITY & CAPABILITYChina and India adding people, U.S. hiring consultants

How have energy efficiency activities impacted personnel decisions?

U.S. respondents most likely to

have hired energy

consultants (41%)

Did not add resources Added resources(internal or external)

55%45%49% 51%

16%

84%

28%

72%

0%

20%

40%

60%

80%

100%

U.S. / CanadaEuropeChinaIndia


4) SUPPLEMENTING BUDGETS WITH EXT. FINANCINGInternal budget constraints most commonly cited

What is the top financial barrier to pursuing energy efficiency for your organization?

Organizations are looking to use internal capital

first

69% have used internal budgets in

the past 2 years

74% of those will use internal

budgets in the next2 years

3%

3%

4%

5%

7%

33%

0% 10% 20% 30% 40%

Inability to secure external financing

Balance sheet debt limitations

Difficulty identifying appropriate financing options

Difficulty obtaining external financing at attractive rates and terms

Insufficient government or utility incentives

Insufficient internal capital budget


ATTRIBUTES OF CLEAN ENERGY SUCCESSExamining the links in the 2011 data

Average number of measures implemented per organization

Set a reduction goal

Analyze energy data frequently

Adding internal or external resources

Using external financing5.7

10.6

6.6

10.6

6.3

11.1

5.7

11.2

No

Yes

No

Yes

No

Yes

No

Yes

13.2 measures adopted by orgs

with all 4 attributes(3.2 for those with none)


CONCLUSIONS AND IMPLICATIONS

1. Markets moving toward energy efficiencyEnergy continues to be a strong priority for organizations around the world, driven by a cost savings, incentives and public image.

2. Obstacles in the wayAwareness of opportunities, technical expertise, certainty of savings, financial criteria and available capital – barriers vary for organizations and regions.

3. Success factorsSetting goals, increasing the frequency of data analysis, securing internal/external resources and leveraging external capital are keys to deeper efficiency improvements and greater savings.

Documents

ENERGY EFFICIENCY INDICATOR1].pdf4. Institute for Building Efficiency | . EEI SURVEY SCOPE. 13 countries, 8 languages, 3868 respondents. 1,692 103. 857. 77. 428 450. 155