Utilities in North America are expected to increase spending on energy efficiency programmes by 4.6% between 2019 and 2028.
Navigant Research forecast utility annual energy efficiency spending to reach $11.3 billion in 2028.
Factors driving the increase in utility efficiency spending include:
- Decreasing technology prices
- The ability of third party administrators to optimise programmes
- Efforts by utilities, state governments and cities to meet carbon emissions reduction and energy efficiency goals
- The need to expand distributed renewable energy resources for grid reliability
Brett Feldman, research director with Navigant Research, said: “The developing use cases and the increasing integration of utility energy efficiency programs with DER suggest continued growth of energy efficiency over the coming decade as more connected devices come online, and utilities simultaneously work to ensure grid reliability.”
On the other hand, regulatory inconsistency, tight pricing margins and a market saturation of energy efficiency technologies are expected to hinder the market over the next decade.
For more information about the report, visit North American Utility Energy Efficiency Program Implementation.