Benchmarking the Market Potential for Energy Efficiency Products and Services in Europe

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • In the current context of burgeoning national and pan-European environmental legislation, energy efficiency products and services are now more relevant than ever
    • Energy efficiency as a B2C and B2B offering is delivered by the energy services divisions of utility and non-utility players alike
    • Datamonitor has developed a Market Attractiveness Index which assesses the appetite for energy efficiency products and services
    • The MAI shows how attractive a particular market is to new entrants in terms of the market environment
    • The MAI is calculated by deriving a weighted average of scores over nine key metrics, producing a rating out of 100
  • Datamonitor' s energy efficiency MAI places Sweden, Greece, Hungary, Cyprus and Germany at the top of the energy efficiency attractiveness scale, today
    • Since the turn of the century, the power efficiency of the major EU27 economies has risen, significantly in some cases
    • Over the past nine years, the gas efficiency of the EU27 Member States has risen, albeit to varying degrees
    • Since the turn of the century, power consumption increases across EU Member States have lead to gains in energy efficiency
    • Growth in gas consumption has stimulated growth in gas efficiency across European market, albeit to varying extents
    • Energy efficiency can offset tight capacity margins in several markets and act as a low-cost proxy for new power generation
    • Differentials in purchase power parity-adjusted power prices can stimulate the demand for energy efficiency in selected countries
    • Individual attitudes and behaviors can dramatically impact the appetite for energy efficiency products and services
    • The appetite for energy and water consumption reduction measures is greater than for micro-generation and green tariffs
    • Consumers' willingness to pay more for energy efficient products and services is a key determinant of successful entry strategies
    • Sweden heads up Datamonitor' s weighted market attractiveness index (MAI), Romania trails
  • In the next seven years, Germany, Sweden and Italy - and to a lesser extent the UK and the Czech Republic - exhibit the strongest overall potential for energy efficiency products and services
    • The power efficiency of major European economies will continue to rise, albeit at a lower pace than that seen during 2000-2005
    • Gas efficiency across all EU27 Member States is set to decrease progressively over the coming seven years
    • Sustained increases in power consumption levels across EU27 Member States will continue deliver gains in power efficiency
    • The gas efficiency business will continue on its upward trend on the back of strong ongoing demand for gas across Europe
    • Niche power efficiency markets could develop in countries where future capacity margins are set to turn negative or decline
    • Spain* ranks highest on Datamonitor' s 2009-2015 MAI, Romania trails once again
    • Datamonitor' s research concludes that Germany, Sweden, and Italy display the greatest energy efficiency market potential
• APPENDIX
  • Main country profiles
  • Glossary
  • Raw Data
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Figures
  • Figure 1: Energy efficiency market attractiveness is represented on a scale numbered 0 to 10
  • Figure 2: The nine scoring metrics used can be divided into two distinct categories - those influenced by the market environment and those driven by customers
  • Figure 3: Over the past nine years, the greatest increase in power efficiency has taken place in Eastern European countries
  • Figure 4: Portugal' s has bucked the trend of increased gas efficiency across EU Member States, mainly because of high gas consumption growth
  • Figure 5: Power consumption levels in the majority of all EU27 Member States have increased every year since 2000
  • Figure 6: Growth in natural gas consumption levels have varied across the EU and have been highest in Greece and the Iberian countries
  • Figure 7: Energy efficiency can play a part in offsetting tight capacity margins in Finland, Slovakia and Hungary (2008 capacity margin data)
  • Figure 8: Eastern European countries exhibit wide variances between local currency prices and PPS prices
  • Figure 10: Member States highlighted in the top-right hand corner show concern about global warming and are willing to act accordingly
  • Figure 9: Products and services that curb energy and water consumption are most popular, particularly in Cyprus, Denmark and Germany
  • Figure 11: Only nine EU countries would be prepared to pay more than the European average for energy produced by greener sources
  • Figure 12: Sweden has the highest MAI scores thanks to a favorable and balanced market framework and strongly sympathetic consumer attitudes
  • Figure 13: By 2015, Bulgaria, Portugal and Slovakia are expected to make the greatest power-efficiency gains (all other factors excluded)
  • Figure 14: Gas intensity growth rates in four states are expected to creep past 0%, implying decreasing energy efficiency levels in those countries
  • Figure 15: Over the next seven years, power consumption levels are expected to rise in all but two European countries
  • Figure 16: High consumption growth rates in Ireland, Portugal, and Estonia point towards increasing gas-efficiency opportunities in these states
  • Figure 17: Anticipated capacity margin constraints in Italy and Belgium make both countries prone to increased levels of power efficiency levels
  • Figure 18: By 2015, the relative attractiveness of European energy efficiency markets will have shifted considerably
  • Figure 19: Germany, Sweden and Italy have the highest market attractiveness and competitive intensity scores, and the largest power spend
  • Figure 20: Many qualitative and quantitative factors have affected the want and need for EU energy efficiency over the past nine years
  • Figure 21: Over the next seven years, local factors that drive the demand for in-country energy efficiency are set to alter significantly