In an interview with Utility Dive, Navigant Research discusses why energy efficiency spending is expected to grow at a steady pace over the next decade
A recent Navigant Research report predicts that energy efficiency spending will increase at a steady rate over the next ten years, due in part to evolving technologies and business activity, in addition to integration and optimization of distributed energy resources (DER).
"I don't have a crystal ball to say [energy efficiency] spending will never fall, but in the forecast period it's steadily increasing," said Jessie Mehrhoff, research analyst at Navigant Research, told Utility Dive.
According to the report, energy efficiency spending in North America is expected to grow at a compound annual rate of 4.6% over the next decade, just on the electric side. Spending will be driven by DER technologies and connected devices coming online, and as utilities simultaneously work to ensure grid reliability.
Other factors that are driving energy efficiency spending include the design of more efficient systems, new technologies, and an added value on customer service and engagement.
"The implementers in this market are creative," said Mehrhoff. "They'll aim to stay competitive and keep earning. So, in the short term, we don't foresee any decrease in spending."