McKinsey’s “Unlocking Energy Efficiency in the US Economy” Report

The latest report from McKinsey, published earlier this year, offers an in depth analysis on how money spent on energy efficiency in this country can have a large effect on the future money spent on energy as well as an overall decrease of green house gas emissions (GHG). The McKinsey researchers found that if a scalable holistic approach is conducted it will yield gross energy savings of more than $1.2 trillion  and reduce end use energy consumption by 9.1 quadrillion (!) BTU’s by 2020. These reductions will also lead to the potential of abating up to 1.1 gigatons of GHG annually. All of these numbers are mammoth  because of the pure number of buildings (100 million) and devices (billions) involved.

How can this report positively effect the Members of SR Inc.? This is a global description of what the potential can be tapped through this overarching strategy to reduce energy use through the use of how a positive Net Present Value (NPV) stands up versus various discount rates that were used. Overall the report came up with five observations that may prove helpful as SR Inc. Members develop their own strategy to drive down energy use,increase energy efficiency and ultimately save their companies money in the short and long term. They are as follows”

1. Recognize energy efficiency as an important energy resource that can help meet future energy needs while the national concurrently develops new no-and low-carbon energy sources.
2. Formulate and launch at both national and regional levels an integrated portfolio of proven, piloted, and emerging approaches to unlock the full potential of energy efficiency.
3. Identify methods to provide the significant funding required by any plan to capture energy efficiency.
4. Forge greater alignment between utilities, regulators, government agencies, manufacturers, and energy consumers.
5. Foster innovation in the development and deployment of next-generation energy efficiency technologies to ensure ongoing productivity gains.

Our shared research model can help our Members start down the road of using these points to achieve greater sustainability for their real estate portolio and the real estate they reside in through our actionable best practices research, rebate and incentives reports as well as regulation updates. Please feel free to contact us on how we can help your company gain greater energy efficiency, save money on energy use and reduce GHG emissions all at the same time. We have a dedicated team devoted to servicing our Members to achieve these savings for large owners and users of real estate nationwide.

You can access a copy of the executive summary and the report in it’s entirety here:

http://www.mckinsey.com/clientservice/electricpowernaturalgas/us_energy_efficiency/

Please contact us with any questions you may have.