Energy efficiency in industrial processes is the ratio of useful output to input of energy in a system. This concept is not only important for environmental and economic reasons. It is also for creating value and innovation for industries. The most obvious benefit of improving energy efficiency can lower operational costs. In relation to that, it can enable to reduce greenhouse gas emissions and enhance competitiveness for industries.
There are various strategies for improving energy efficiency in industrial processes. Implementing energy management systems and audits might be a start for most efforts. Those enable to identify and monitor energy use and performance. Then it is possible to set goals, track progress, and identify opportunities for improvement. For example, the ISO 50001 standard provides a framework for establishing and implementing an energy management system. This standard provides a practical way to improve energy use, through the development of an energy management system.
Adopting best practices and technologies for process optimization can be the tools to rely on. Technologies such as heat recovery, waste minimization, and variable speed drives can help to reduce energy losses, increase efficiency, and optimize production. For example, heat recovery systems such as boilers, furnaces, and ovens, can capture and reuse the otherwise wasted heat from caused by industrial processes. Renewable energy is a hot topic, thus investing in renewable sources can help to reduce dependence on fossil fuels, lower carbon footprint, and save costs.
Some other tools to further enhance those efforts could be applying innovative solutions, such as digitalization, smart sensors, and artificial intelligence. These can help to collect and analyze data, automate and control processes. For example, digitalization can enable to connect and integrate their processes, equipment, and systems, and to access real-time information and insights.
“If I have seen further, it is by standing on the shoulders of giants,” said Newton. Engaging in collaborative actions and partnerships with other stakeholders, such as governments, regulators, customers, and suppliers is a sure way to take. To share knowledge and best practices, or to create incentives and standards for energy efficiency benefits could be countless. These can help to align objectives, leverage resources, and overcome barriers. The Energy Star program, which recognizes and promotes energy-efficient products and practices has been running since 1992. It is estimated that, in 2020 alone, the program’s emissions reductions were equivalent to more than five percent of U.S. total greenhouse gas emissions.
Reducing greenhouse gas emissions and mitigating climate change, besides many controversies, create meaningful impacts as a result of energy efficiency projects. According to the International Energy Agency (IEA), improving energy efficiency could deliver over 40% of the emissions reductions needed to achieve the Paris Agreement goals. At this point two other terms come into the mix, energy conservation and sustainable energy. Energy efficiency might be regarded as a subset of energy conservation, whereas it can also be regarded as a cornerstone of sustainable energy targets. For the sake of energy conservation, using the optimal amount of electricity for each process and minimizing the losses can be achieved by, for instance, utilizing power factor correction. On the other hand, efficient use of renewable energy sources can contribute to sustainable energy, that is another way of saying “meeting energy needs without compromising the ability of future generations to meet their own needs”.
By improving energy efficiency, industries can save money most obviously on energy bills. Global industry could save around $437 billion a year from 2030 via energy efficiency savings, a study by the Energy Efficiency Movement shows. It is an industry collective, which has Switzerland's ABB, Germany's DHL Group, Sweden's Alfa Laval and Microsoft among its members, said four gigatons of carbon emissions could be saved by 2030.
That brings another question to the table, enhancing competitiveness and market share. By improving energy efficiency, industries can improve product quality, customer satisfaction, and reputation, and gain a competitive edge in the market.
Fostering innovation and creativity could be a benefit as well as a challenge for organizations. According to the World Economic Forum, energy efficiency can drive the transition to a circular economy, where resources are used more efficiently and waste is minimized. In contrast, many industries may face technical and organizational challenges to improve energy efficiency, such as replacing or upgrading old and inefficient equipment, optimizing their complex and interrelated processes, and coordinating and collaborating with their internal and external stakeholders.
Many industries lack awareness and knowledge about energy efficiency opportunities and solutions. They may not be aware of the potential benefits and solutions for improving energy efficiency or may not have the necessary skills and expertise to implement them. High upfront costs and long payback periods seem to be an entry barrier in that sense. According to the International Finance Corporation (IFC) and International Energy Agency (IEA), today’s $135 billion financing has a gap of $1.5 trillion for energy efficiency projects in emerging markets.
There is some consensus regarding regulatory and polices as well as some uncertainties. Industries may face regulatory and policy uncertainties that affect their energy efficiency decisions. It is clear that there is a need for more stable and coherent policies and regulations to create a favorable environment for energy efficiency investments.
Energy efficiency is important for industries. It creates value and innovation. It also helps to solve environmental and economic problems. But energy efficiency has benefits and challenges. Industries and other stakeholders need to utilize different methods to measure industrial process’s energy efficiency, depending on the purpose and situation. Industries can use effective strategies to improve energy efficiency, that can help industries to reach their energy goals