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 8-10% per year (certain subsegments growing 15% to 50% per year)
    • Green building materials forecast to reach $100 billion annual sales by 2018
    • Green construction forecast to be 40-48% of non-residential construction by 2015
    • Forecast annual growth for selected subsegments:
      • High efficiency AC in Data Centers: 13-15%
      • LED lighting: 10-12%
      • Green building materials: 11-17%
  • 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