Energy Efficiency Is a Net Zero Game Changer

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Energy Efficiency Is a Net Zero Game Changer

Energy efficiency isn’t just about climate change; it’s the invisible fuel that drives business performance.

A summer of record-high temperatures and other weather extremes has made climate change very real. There is a growing consensus that more needs to be done to meet the emission targets set by the Paris Agreement.

Multiple strategies are required, including promoting the transition to renewable energy and electrification of transport and industry. However, for business leaders, it is also vital for these actions to make economic sense.

Something I believe can make a major difference is still not getting the attention it really deserves: energy efficiency. Or, in other words, using existing technology to do more with the energy resources we already have. It’s an approach that is both good for the planet and good for business.

According to a recent report by the International Energy Agency (IEA), energy efficiency will drive down greenhouse gas emissions by some 40% over the next 20 years. It’s no wonder that the IEA refers to energy efficiency as the “first fuel” in tackling climate change.

At the same time that the world is facing climate change, the geopolitical situation is in flux and energy shortages have driven prices through the roof, threatening the viability of many businesses. There are even fears that these factors might cause governments to hold back on plans to achieve net zero.

Industry can lead the way in combating these twin crises by adopting energy-efficient technology. The reason is that electric motors are widespread throughout industry, where they consume more than 45% of the world’s electricity.

These motors are prime targets for implementing energy-efficiency measures that both reduce emissions and offer a payback that only increases as energy costs soar.

Revitalizing the workhorses of industry

Electric motors are the workhorses of modern industry. From steel mills to food and beverage production, motors run processes, drive heating, ventilation and air conditioning (HVAC) systems that keep us warm or cool and power the countless pumps that supply fresh water.

However, many of the world’s 300 million motor-driven systems in operation today are old, inefficient and consume much more power than required. That means a lot of energy is simply going to waste. Investing in energy-efficient technology can make a big difference, potentially cutting global electricity consumption by as much as 10%.

Adopting high-efficiency motors is one element. However, variable speed drives (VSDs) also play a vital role as they can adjust motor speed to match the load. With typical energy savings of 25% or more, VSDs sometimes yield payback times of less than a year. In the words of one of my colleagues, “using a motor without a drive is like having a single switch that turns all the lights in your house on and off at the same time, rather than having a switch in every room.”

Aim for the very best performance

Legislation is helping to guide the market. For example, the EU introduced IE3 as the minimum efficiency level for motors in 2021, and this will rise again in 2023. But why stop there? Smart operators are already opting for IE5, the best performance level currently available.

The good news is that the energy-efficiency message is clearly resonating with industry. This was confirmed by ABB’s recent global energy-efficiency survey of 2,000 businesses, which found that 97% are investing or planning to invest in energy efficiency, while 89% will increase spending over the next five years.

Technology is already available that can help businesses save energy and boost productivity—such as the pairing of our ultra-efficient synchronous reluctance motor (SynRM) with a VSD.

To show what is possible, a large Australian producer of soups, stocks and meals set ambitious sustainability targets. It determined that one plant needs to cut energy consumption by 20% by 2025. The company upgraded its refrigeration compressor motors with a SynRM motor and drive package. This simple change produced annual energy savings of 14% and eliminated 131 metric tons of CO2 emissions per year.

In the challenging times ahead, energy efficiency offers a smart way to balance the priorities of net zero and good business, and it will be crucial in accelerating the transition to a more sustainable and productive future.

Learn more about ABB IE5 SynRM motors and drives here.

— Stefan Floeck, Division President, IEC Low Voltage Motors, ABB Motion

This article originally appeared in Business Reporter.

Image: Courtesy of ABB