Greetings from Melbourne!
Yesterday I saw a twitter post from ACEEE that kind of spoke about how companies could do more on investing in #EnergyEfficiency. I have engaged in so many offline and online conversations around #EnergyEfficiency, often see that Industries get the last spot!
Without a shadow of doubt the residential, commercial buildings and the “space cooling” markets are extremely relevant as they have direct connect with consumers, utilities (often state run) have it in their interest to manage the demand- supply situation. But spare a thought, globally industries contribute to around 36% of the total energy consumption.
Industrial #EnergyEfficiency becomes more important for emerging or developing economies who are into manufacturing of goods or delivering services that are energy intensive. Take the case of Bangladesh, Industries account for over 40% of the total energy consumption, out of which the Textile sector contributes to more than half of the consumption.
Completely understand that every narrative of selling #EnergyEfficiency is part of a bigger “narrative” which may or may not bear the same relevance for each country. I speak for emerging / developing economies, here is how policy makers and think thanks look to change the narrative on Industrial #EnergyEfficiency and make it work:-
- Industrial #EnergyEfficiency has direct connect with #EnergyProductivity, which is a better macro indicator when it comes to tracking economic output vis-a-vis energy consumed. #EnergyProductivity should become the default indicator for all energy performance assessments and target setting in Industries
- Have an Industrial policy that is forward looking, integrates aspects like Industry40, IIoT. A country may have the best of Energy Efficiency norms, but a policy that supports import of outdated equipments (linked to process) may not get them anywhere.
- Some of the sectors, especially in the Small Businesses (SME segment) (Foundry, Forging etc) have often had problems in taking up new technologies or processes that can help them have transformational change. Open up these challenges under Industry-Startup partnerships, let them solve the problem and deploy solution at scale.
- Foster sectoral-regional collaboration, create mechanisms in which insights could benefit the sector at large. Understand “sharing of Data” is a challenge, there are business models and use cases one could look at and attempt to overcome these challenges.
Emerging/ developing economies rely significantly on manufacturing as against to services. Any form of inefficieny has a direct link to macro socio-economic indicators of that country.
Would love to know your thoughts?