Market Report on the Energy Management Sector

Published: January 2011

EXECUTIVE SUMMARY

This report considers energy management and energy efficiency services, a new sector that involves businesses involved in measuring and managing resource efficiency through a combination of ICT hardware (e.g. sensor technologies) and software, as well as consultancy and efficiency advice activities. The objective of the report is to provide an all-island overview of this important and growing segment of the wider energy industry, with an emphasis on the prospects for indigenous business.

Some of the findings of this report are:

• Estimating the market size and value of the energy management sector is a difficult task, both because of the relative newness of the sector and the fact that many companies also find themselves involved in other business activities, often in associated areas such as renewable energy, waste management and ICT.
• The energy management sector on the island is a diverse one in terms of the types of companies within it. There are, as expected, a large number of small firms serving a domestic market among the 250 or so in the sector. However, there are also some high potential businesses with products and services aimed at a global market.
• The market on the island can be divided into the commercial/industrial, the residential and the public sector. The first segment is the dominant one, given electricity usage and the perception that energy costs are a key competitive challenge.
• There is likely to be increasing employment in the energy management sector in the coming years with skill requirements in areas such as engineering, project management and communications. There is likely to be a particular need for energy engineers and sales staff with a technical ability.
• There are significant fiscal supports for adoption of energy management products and services, from capital allowances to grant supports. In addition rising energy costs and carbon taxes provide additional incentives for uptake.
• A significant number of companies are involved in cross-border trade in the energy management sector, particularly in the industrial/commercial sector. There is very little cross-border trade being done in the public sector energy market, something which may change with new green public procurement guidelines. 

You can find out more about What is green technology? on the InterTradeIreland Cross-Border Trade Hub.