The International Energy Agency (IEA) noted in a report that investment in energy efficiency markets globally in 2012 was between $310 billion and $360 billion. According to the IEA, investment in energy efficiency was larger than supply-side investment in renewable electricity or in coal, oil and gas electricity generation.
The IEA report further noted that efficiency had the largest percentage improvement in the residential sector, where energy demand reduced by 5% from 2001 levels among the countries the agency analyzed.
The energy efficiency market has also benefited from increased funding. The IEA noted in its report that energy efficiency financing has moved from being a niche to an established financial market segment. According to the IEA, the transition from a niche to an established financial market segment is due to the availability of a greater range of financial products, models and intermediaries to facilitate investment.
The outlook for the energy efficiency market is robust, which augurs well for Milwaukee-based Telkonet Inc. (OTCQB:TKOI). Telkonet is the creator of the EcoSmart platform of in-room automation solutions integrated to optimize energy efficiency, comfort and data collection in support of the emerging Internet of Things.
This morning, TKOI announced that it is partnering with Deutsche Asset & Wealth Management to design, implement and fund energy savings upgrades for commercial properties at no incremental cost or risk, under an Energy Savings Agreement (ESA).
TKO said that it will make the ESA available to its existing and prospective clients in hospitality, education, public housing, retail and senior living facilities who wish to upgrade their facilities to become more energy efficient and fund the upgrades through the generated savings. The ESA product will utilize TKOI’s EcoSmart energy management platform of guest-room technologies to control HVAC, lighting, plug-loads and other devices. It can also include additional capital upgrades such as HVAC, co-generation, lighting, controls and other measures.
Commenting on the development, Jason Tienor, CEO of Telkonet, said that the company’s clients have competing options for the scarce capital dollars available through traditional budgeting processes. Tienor further said that the Deutsche Asset & Wealth Management Energy Savings Agreement allows these clients to harvest the benefits of efficiency upgrades immediately after implementation and the potential savings, which take place over time, pay for the upgrade themselves.
Jeff Baer, Managing Director Alternatives & Real Assets of Deutsche Asset & Wealth Management said the integrated approach will allow property owners to quickly achieve the benefits of property improvements, savings and certainty.
TKOI shares are trading up over 6% on the news and look to be in an uptrend since the start of 2015, which all bodes well for shareholders of TKOI.
