Why Should Efficiency be a Priority?
Updated: Dec 17, 2019
India has been responsible for almost 10% of the increase in global energy demand since 2000. In less than 2 decades (2000-2017) energy demand doubled in India. In the case of an efficient world we can limit the increase of demand for the decades to come. Energy savings in an Efficient World Scenario would come primarily from Industries (45%), then buildings (30%) followed by the transportation sector.[1] Here at Energeia we aim to focus our work on industrial as well as building efficiencies.
Why does it make sense to invest in efficiency before renewable generation?
The IEA categorizes energy efficiency as the first fuel of a sustainable global energy system. This is because, economics govern the functioning of most industries. Reduced operating costs are the single most important factor for driving increased energy efficiency. [2] Along with demand management Energy Efficiency retrofits are useful to tackle the challenge of Climate Change. Sustainable Energy for all has estimated that energy efficiency measures have the potential to deliver more than half the emissions cuts needed to keep the increase in global temperatures within 2°C, while delivering tangible economic and other benefits for society.[3]
Efficiency has the clearest impact on saving money, improving business results, and delivering more services for consumers. It reduces greenhouse gas emissions and improves productivity. By reducing energy demand, it also makes renewable energy more affordable, for example by shrinking the size of the solar panel needed to power a machinery.
The opportunities for increased efficiency are numerous and substantial. Existing technologies such as making use of the heat produced in power generation, fuel conversions and process optimization can be easily tapped into if these opportunities are made visible.
Role of ESCOs such as Energeia
Realizing this energy efficiency potential in industries can be attained through Energy Services Companies (ESCOs). Companies which implement energy efficiency projects though Energy Savings Performance Contracting. ESCO-based projects can help launch large-scale energy projects by mitigating perceived risks and providing assured savings.[4] Energeia aims to change the landscape of India’s relatively nascent ESCO industry by playing a part in not only implementing solutions but also by generating awareness and engaging in a policy level push. ESCOs help grab the low hanging fruit while navigating the challenges of finance and accessibility.
IoT – Digitization is the way forward
As an industrial player it is important to realize the importance of monitoring your energy data by harnessing the cutting edge IoT technology. It is estimated that the Indian market for IoT is likely to touch USD 15 billion in the next five years with an integral use case in energy intensive industries. [5] A digitized platform makes savings visible by monitoring and verifying data with minute precision.