The Best Way to Save Electricity? Don’t Use It
ABB is a Business Reporter client.
Industrial companies are accelerating investment in energy efficiency.
Decarbonizing industry is crucial to cut CO2 emissions and limit global warming, and using electric power rather than fossil fuels for energy-intensive applications is a key part of the strategy.
Urbanization, automation and the rise in living standards will increase global electricity demand, and the number of electric motors is projected to double by 2040. To protect the environment and meet net-zero targets, electric motor-driven systems must use energy as efficiently as possible.
The best way to save energy—and the most sustainable thing a business can do—is to not use it. According to a recent energy-efficiency survey of 2,294 industrial companies commissioned by ABB, industrial leaders agree. Globally, an overwhelming majority of companies (97%) report that they are already investing or soon plan to invest in improving energy efficiency.
For US respondents, that figure drops slightly to 92%. However, it’s encouraging that 85% plan to increase their investment in energy efficiency over the next five years.
Technology that pays back
While US respondents cited cost as a barrier to investing in energy efficiency, 70% cited cost savings as the most important reason to invest. There is clearly a compelling business case to be made for investing in the latest energy-efficient technology.
Walking through a typical manufacturing plant, you are likely to see motor-driven systems based on outdated and inefficient technology, which waste energy and add unnecessary carbon to our atmosphere. Fortunately, the technology we need is available.
Industrial electric motors have recently undergone a period of exceptionally rapid advancement and today’s latest models achieve ultra-premium efficiency that conforms to IE5 standards. Furthermore, by adding variable speed drives—essentially dimmer switches for motors—the amount of electricity consumed is adjusted to match the exact amount of energy needed at any given moment. These technologies can have a massive impact on energy efficiency.
In many applications, a more efficient motor can pay for itself in energy savings in six to 24 months, enabling businesses to save money over the lifetime of the motor while cutting CO2 emissions from day one. Energy efficiency is good for business, good for reputation and good for the environment.
That message seems to be resonating with US manufacturers, as three-quarters (76%) of survey respondents report that they are upgrading to equipment with best-in-class energy-efficiency ratings.
Original equipment manufacturers are also receiving requests from customers to provide more efficient equipment. That’s the feedback we have received from a leading US manufacturer of commercial heating, ventilation and air conditioning (HVAC) systems. The company is receiving an increasing number of orders that request the latest motor technology and, as a result, the business has selected ultra-premium efficiency motors for its high-efficiency, reduced-footprint rooftop air-handling units.
This example and the survey results are indeed positive, but much more needs to be done to meet net zero targets. Knowledge sharing is key to the widespread adoption of energy-efficient technology. Manufacturers such as ABB are responsible for clearly explaining the benefits of efficiency, both in terms of climate change and how reducing energy use contributes directly to the bottom line.
By investing in energy-efficient technologies and reducing the amount of electricity we consume, every commercial building and industrial process can become part of the solution and create a better planet.
The Energy Efficiency Investment Survey 2022 is available here.
— Jesse Henson, President, NEMA Motor Division, ABB
This article originally appeared in Business Reporter. Header Image credit: Courtesy of ABB
