NewWorld Capital Group

Energy Efficiency

  • Situation
    • U. S. uses 75% more electricity per capita than virtually every developed economy
    • Energy costs can reach 35% of product costs in industrial processes
    • Home retrofits deliver up to 60% energy savings
    • Energy consumers demand 2-3 year paybacks on efficiency investments
    • Market imperfections (e.g., split incentives, information asymmetries)
    • $15 billion annual government subsidies of fossil fuels
  • Market Opportunities
    • Aggregate market forecast to grow 7-9% (certain sub-segments growing 12% to 40%)
    • Energy-efficiency-retrofits for buildings alone offer a $279 billion investment opportunity
    • Demand for green building materials forecast to reach roughly $90 billion by 2017
    • Forecast annual growth for selected subsegments:
      • High efficiency AC in Data Centers: 13-15%
      • LED lighting: 40%
      • Green building materials: 12%
  • NewWorld Investment Focus
    • Energy management systems
    • Energy-efficient appliances — e.g., high efficiency air conditioners
    • Combined cooling, heating, and power (CCHP) distributed energy
    • Smart grid applications
    • Retrofits for commercial and residential buildings
    • NewWorld focuses on “backwards compatible” businesses that do not require material change in the downstream product distribution and service system