Ameresco Inc (AMRC), Johnson Controls, Inc. (JCI): The Cheapest Megawatt

Indeed, he views energy efficiency as a critical element of our transition to a new energy architecture.

The players
Energy efficiency is a huge space to play, so I won’t pretend that I can offer an exhaustive view of the companies involved. That said, here are some names that are very interesting in this area.

Johnson Controls, Inc. (NYSE:JCI) is involved in making buildings run more efficiently. Commercial buildings’ energy intensity has dropped by more than 40% since 1980, but there is plenty of room left for further improvement. Johnson Controls, Inc. (NYSE:JCI) offers products and services that optimize buildings’ energy and operational efficiencies, as well as lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles. In 2012, Johnson Controls, Inc. (NYSE:JCI)’s building efficiency unit accounted for 35% of net sales.
Ameresco Inc (NYSE:AMRC) is one of the few large, independent energy efficiency service providers. The company’s principal service is the development, design, engineering and installation of projects that reduce the energy and operations and maintenance costs of its customers’ facilities. Ameresco Inc (NYSE:AMRC) has seen declining revenues recently because of unusually long lag times in getting its projects funded, but this seems a temporary setback.
Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) is among the world’s largest lighting manufacturers, and promoting energy-efficient lighting is one of its top priorities. Lighting accounts for more than 19% of the world’s energy consumption, so Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) is well positioned to benefit from the efficiency trend. The company announced last month that it had created the world’s most energy-efficient LED lamp suitable for general lighting applications. The lamp will come to market in 2015 for office and industry applications and will ultimately be available for residential use.
BorgWarner Inc. (NYSE:BWA) makes fuel-efficiency tools for cars and is among the tips Sarbjit Nahal provided in his report. The company has outperformed every auto supplier in North America over the past three years. BorgWarner Inc. (NYSE:BWA)’s stock has slipped recently, largely because of declines in European auto sales. That could make the timing just right to consider this solid company.

And then there’s General Electric Company (NYSE:GE) , one of the pioneers of energy efficiency solutions, with its fingers in nearly all of the new energy pies. The massive conglomerate offers an entire array of products that improve the efficient operation of power plants, airplanes, railroad systems, and wind turbines, just to name a few.

The article Smart Money Is in Energy Efficiency originally appeared on is written by Sara Murphy.

Motley Fool contributor Sara Murphy has no position in any stocks mentioned. Follow her on Twitter: @SMurphSmiles. The Motley Fool recommends Ameresco and BorgWarner and owns shares of General Electric.

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