The inefficiencies in commercial building operations have direct implications for the country’s carbon footprint. With climate change still a political stalemate, the Obama Administration has instead taken aim at energy waste in buildings, with voluntary programs led by the U.S. Department of Energy (DOE) that are making waves in the private sector. Energy efficiency challenges, showcases of business best practices, and now a call for private sector financial commitments to fund technology development are all targeting business transformation.
At this year’s ARPA-E Summit, the Obama Administration announced a $2 billion Clean Energy Investment Initiative as a challenge to the private sector to fuel investment in the kind of innovation needed to tackle the threat of climate change. Brian Deese, deputy director of the Office of Management and Budget explained, “Further clean energy innovation to improve the cost, performance, and scalability of low-carbon energy technologies will be critical to taking action against climate change. Foundations and institutional investors have the potential to play an important role in accelerating our transition to a low-carbon economy and cutting carbon pollution.”
Wells Fargo stepped up to the plate with a $10 million Innovation Incubator (IN2) program to support early-stage energy efficiency technologies for commercial buildings. A collaboration with the National Renewable Energy Laboratory (NREL), the program offers startups grants, mentorship, research and testing support at NREL, and field testing in Wells Fargo buildings. The effort will not only help startups develop commercial-ready business models, but also generate proof-of-concept demonstration for innovative technologies. In conjunction with the launch of the Clean Energy Investment Initiative, Wells Fargo also announced it will expand investment partnerships with other financial institutions to bring more money to the table in support of the $2 billion target.
New building technologies remain a bright spot for clean tech investment. In fact, according to statistics from Crunch Base, venture funding for building technology innovations characterized as Internet of Things (IoT) solutions has steadily risen, even as more general clean tech investing took a dive. A recent article on TechCrunch suggests that almost 40% of all clean energy rounds in 2014 went to IoT smart building startups.
Recent research from Navigant Research echoes the optimism around growth in the market for building innovations. Building energy management systems (BEMSs), for example, leverage the IoT to deliver unprecedented visibility and insight into building and significant improvements in energy consumption and resource utilization. Our recent report, Building Energy Management Systems, shows that the business impacts facilitated by BEMSs have direct and quantifiable climate change impacts. A growing pool of funding sources for companies helping to evolve this maturing marketplace is just one example of the benefits that may come from the Clean Energy Investment Initiative.
Tags: Building Innovations, Building Systems, Climate Change, Conferences & Events, Energy Efficient Buildings
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