DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
In the current context of burgeoning national and pan-European environmental legislation, energy efficiency products and services are now more relevant than ever 2
Energy efficiency as a B2C and B2B offering is delivered by the energy services divisions of utility and non-utility players alike 2
Datamonitor has developed a Market Attractiveness Index which assesses the appetite for energy efficiency products and services 2
The MAI shows how attractive a particular market is to new entrants in terms of the market environment 3
The MAI is calculated by deriving a weighted average of scores over nine key metrics, producing a rating out of 100 4
Datamonitor's energy efficiency MAI places Sweden, Greece, Hungary, Cyprus and Germany at the top of the energy efficiency attractiveness scale, today 5
Since the turn of the century, the power efficiency of the major EU27 economies has risen, significantly in some cases 5
Over the past nine years, the gas efficiency of the EU27 Member States has risen, albeit to varying degrees 6
Since the turn of the century, power consumption increases across EU Member States have lead to gains in energy efficiency 7
Growth in gas consumption has stimulated growth in gas efficiency across European market, albeit to varying extents 8
Energy efficiency can offset tight capacity margins in several markets and act as a low-cost proxy for new power generation 9
Differentials in purchase power parity-adjusted power prices can stimulate the demand for energy efficiency in selected countries 10
Individual attitudes and behaviors can dramatically impact the appetite for energy efficiency products and services 11
The appetite for energy and water consumption reduction measures is greater than for micro-generation and green tariffs 12
Consumers' willingness to pay more for energy efficient products and services is a key determinant of successful entry strategies 13
Sweden heads up Datamonitor's weighted market attractiveness index (MAI), Romania trails 14
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 15
The power efficiency of major European economies will continue to rise, albeit at a lower pace than that seen during 2000-2005 15
Gas efficiency across all EU27 Member States is set to decrease progressively over the coming seven years 16
Sustained increases in power consumption levels across EU27 Member States will continue deliver gains in power efficiency 17
The gas efficiency business will continue on its upward trend on the back of strong ongoing demand for gas across Europe 18
Niche power efficiency markets could develop in countries where future capacity margins are set to turn negative or decline 19
Spain* ranks highest on Datamonitor's 2009-2015 MAI, Romania trails once again 20
Datamonitor's research concludes that Germany, Sweden, and Italy display the greatest energy efficiency market potential 21
APPENDIX 22
Main country profiles 22
Glossary 23
Raw Data 24
Ask the analyst 26
Datamonitor consulting 26
Disclaimer 26
List of Figures
Figure 1: Energy efficiency market attractiveness is represented on a scale numbered 0 to 10 3
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 4
Figure 3: Over the past nine years, the greatest increase in power efficiency has taken place in Eastern European countries 5
Figure 4: Portugal's has bucked the trend of increased gas efficiency across EU Member States, mainly because of high gas consumption growth 6
Figure 5: Power consumption levels in the majority of all EU27 Member States have increased every year since 2000 7
Figure 6: Growth in natural gas consumption levels have varied across the EU and have been highest in Greece and the Iberian countries 8
Figure 7: Energy efficiency can play a part in offsetting tight capacity margins in Finland, Slovakia and Hungary (2008 capacity margin data) 9
Figure 8: Eastern European countries exhibit wide variances between local currency prices and PPS prices 10
Figure 10: Member States highlighted in the top-right hand corner show concern about global warming and are willing to act accordingly 11
Figure 9: Products and services that curb energy and water consumption are most popular, particularly in Cyprus, Denmark and Germany 12
Figure 11: Only nine EU countries would be prepared to pay more than the European average for energy produced by greener sources 13
Figure 12: Sweden has the highest MAI scores thanks to a favorable and balanced market framework and strongly sympathetic consumer attitudes 14
Figure 13: By 2015, Bulgaria, Portugal and Slovakia are expected to make the greatest power-efficiency gains (all other factors excluded) 15
Figure 14: Gas intensity growth rates in four states are expected to creep past 0%, implying decreasing energy efficiency levels in those countries 16
Figure 15: Over the next seven years, power consumption levels are expected to rise in all but two European countries 17
Figure 16: High consumption growth rates in Ireland, Portugal, and Estonia point towards increasing gas-efficiency opportunities in these states 18
Figure 17: Anticipated capacity margin constraints in Italy and Belgium make both countries prone to increased levels of power efficiency levels 19
Figure 18: By 2015, the relative attractiveness of European energy efficiency markets will have shifted considerably 20
Figure 19: Germany, Sweden and Italy have the highest market attractiveness and competitive intensity scores, and the largest power spend 21
Figure 20: Many qualitative and quantitative factors have affected the want and need for EU energy efficiency over the past nine years 24
Figure 21: Over the next seven years, local factors that drive the demand for in-country energy efficiency are set to alter significantly 25