Regulatory changes compel adoption of energy management services in Brazil

BRAZIL: Stiff competition has impelled several companies to look for cost reduction methods particularly in terms of energy consumption, leading to the development of energy management systems (EMS) in Brazil. Regulatory changes to stimulate production and revive the economy have added to the need to manage energy use and lent momentum to the EMS market in the country.

Brazil was ranked fourth in the world for number of sustainable buildings. The rising demand for sustainability and added value in the country is driving the number of registrations for energy labels and certifications, necessitating the adoption of EMS. The Brazilian labeling program for electrical equipment and buildings will also spur market revenues.

"The current Brazilian contracting model requires power consumption levels to be stated in advance, and the customer is fined if actual utilization exceeds the estimated value," said Frost & Sullivan Energy and Environmental Leader Juliana Passadore. "Therefore, energy-intensive industries and commercial building owners are turning to EMS to prevent excessive consumption."

Sustainable and certified infrastructure for events such as the FIFA World Cup in 2014 and the Olympic Games in 2016, and homes for the poor built through construction programs, will boost the country's EMS market. Government regulations for peak and off-peak tariffs as well as mini and micro electricity generation will intensify customer concern on energy consumption and aid uptake.

Despite these growing concerns on saving energy, however, awareness on energy costs and regulations remains low and reduces market potential. Certain EMS vendors' lack of qualification and the poor services they offer have given rise to the perception that the market as a whole is unprepared or unqualified, further curbing market value.