Key Takeaways from IEA’s Energy Efficiency 2018

takeaways iea 2018Last month, the International Energy Agency (IEA) released a report, Energy Efficiency 2018, in which they examined the current state of energy efficiency across the globe. Additionally, they took a look at where energy efficiency is heading over the next twenty years and what more needs to be done to maximize the benefits. The IEA notes the incredible impact of energy efficiency thus far, while also recognizing that so much more needs to be done by all parties to maximize its potential. Since 2000, 12% of final energy usage across the globe has been negated due to improvements in energy efficiency. This shows just how powerful energy efficiency can be in keeping worldwide energy usage down, which has benefits that go far beyond saving money on an electric bill, including reducing greenhouse gas emissions and cutting air pollutants.

As the energy demand rapidly increases worldwide, due in large part to emerging economies, energy efficiency is a necessary tool to help offset that additional energy usage. Energy efficiency helps reduce the impact that major economic development would typically have on energy usage.

While energy efficiency investment has continued to grow, the global energy demand has continued to grow with it. Energy efficiency has helped offset that to a degree, but not enough to stop worldwide energy usage from increasing. As outlined in the chart below, global energy demand saw its largest net increase this decade.

 

The IEA identifies six countries as major emerging economies — Brazil, China, India, Indonesia, Mexico, and South Africa. These six countries currently account for a third of global primary energy demand. The collective energy demand of these six countries is projected to increase by 45% between now and 2040, but the IEA claims this number could be reduced to 24% if energy-efficient measures were adopted.

 

 

Energy efficiency has already saved significant energy usage in these emerging economies, saving 10% of final energy usage in these countries alone. Much like the worldwide energy usage scenario, demand is growing faster than energy efficiency can currently keep up with.

Expansion in policy coverage is a key component in the growing role of energy efficiency, both in emerging economies and in countries throughout the world. Mandatory policies requiring installation of energy-efficient measures drive widespread adoption.

Investment in energy efficiency is necessary to maximize the benefits and help slow the increasing energy usage worldwide. In order to recognize all the potential of energy efficiency, annual investment will need to double by 2025 and double again between 2025 and 2040, reaching $1.3 trillion per year in investment. The IEA was quick to note that investment in energy efficiency is cost-effective and ultimately saves money via energy savings and additional economic benefits.

The IEA sees opportunities for population to grow by 20%, for building space to increase by 60%, and for the global GDP to double with only a nominal increase in energy usage compared to what we’re using today. Energy efficiency will be a key driver of that scenario, but requires action starting today, mainly with mandatory energy policy and investment in energy-efficient measures.

See the full ‘Energy Efficiency 2018’ report here and learn more.

How to Create an Energy Efficiency Proposal that Closes Deals Faster

 

Proposals can be tricky. While in the end it may result in a sale, the task of putting one together can be quite cumbersome and time consuming. We’re going to provide you with an overview of how to start the process and some important points to include in an energy efficiency proposal so that you can get your customers to say ‘yes’ faster.

Any proposal needs to easily and clearly communicate the purpose and make it easy for recipients to see at a glance the goals and the results if they choose to agree with the terms. You will also need to provide sufficient detail to explain the plan and objectives. Be sure you know your audience. This allows you to understand their objectives and create a proposal that solves their problems with a solution that will help them reach their goals.

The proposal structure is very important. It takes the reader on a journey that starts with why they need the proposal and ends with showing them how it can help them become more energy-efficient. If we break it down into sections from the start it will be easier to get everything finished.

You can download and print a checklist at the end of this article.

Let’s get started.

 

Cover Page

This page should include:

Your logo
Project name
Your company name and contact information
Client’s company name and contact information
Date the proposal was issued
Valid through date (if applicable)

 

Executive Summary

The complete story in simple terms. Make it easy for readers to absorb why your solution is the right one for them. This isn’t a summary of the entire proposal, it focuses on the benefits of your solution. Keep it short and to the point. Feel free to illustrate cost savings and/or energy savings in this section too.

 

Solution/Project Scope

This should be the bulk of your proposal. Use charts, graphs, schematics, or other visuals to clarify, illustrate, and/or support the material in this section. Here’s a list of points you may want to cover in this part of the proposal. Remember, if you are including a lot of technical data add a note and explain it in layman’s terms.

Building information
Project scope
Current condition energy analysis
Project energy analysis and comparison
Cost-savings initiatives
Equipment/Fixtures
Budgetary data

Detailed savings summary:
Energy savings for existing annual energy usage and proposed annual energy usage
Annual energy savings (you can show this in a bar graph for an easy-to-understand overall view)
Utility rebate estimate including the amount, how much upfront cost it will save, and the reduced payback period
Payback period in years (with and without the utility rebate factored in)

The environmental impacts of greenhouse gas emissions and carbon dioxide emissions saved from: passenger vehicles driven for one year, gallons of gasoline consumed, acres of U.S. rainforest in one year, tons of waste recycled instead of landfilled, pounds of coal burned, homes’ energy use for one year

 

About us/Team

You can add some information here about your company or team. Include photos to make it more relatable and human. Your potential clients want to feel that you’re reliable and someone they can trust.

 

Case Study/Testimonials

Your reputation speaks volumes. If you have some quotes from past clients that speaks to how you helped them or a great energy efficiency project that you completed where the client received utility rebates, energy savings, and a very quick break-even point – these would be very helpful to convince the client you’re the right choice!

 

Final Page + Signature

You can include terms and conditions or some legal language if needed. Make sure there is a place for the client to sign and agree to the proposal.

 

Another tip while writing the proposal is to think of some objections that the client might bring up. Think about how you would deal with it and try to answer these questions in the proposal. Here’s a short list of some things they might ask:

We do not have the budget to fund this project
Installing this equipment seems like it would be disruptive
We aren’t sure how long we’ll will be located at this building/equipment

As with all great proposals, good planning lays the foundation for a successful proposal that lays out the benefits and gets them to sign faster. Follow these steps to simplify and shorten the time you spend on energy efficiency proposals!

 

Download Checklist