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Why is Energy Efficiency as Important as Energy Generation?

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  • Tuesday, 6 August 2013
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  • What is energy efficiency and why should we be concerned about it? 

    Energy Efficiency or Energy Conservation is as important as Energy Generation because there can be a significant amount of energy savings (and hence cost savings/carbon emissions reduction) when we enhance/replace our existent equipment/systems, with more energy efficient ones. Energy efficiency is more like an investment that offers a high returns on investment, sooner. 

    Some energy is lost at each and every stage (power plant, transmission, distribution, equipment (motor/pump), etc) of production and distribution of power. It is estimated that,

    "One unit of energy saved is two units of energy produced and five units of energy preserved"

    Hence, energy savings at the consumer end results in much more energy/cost savings, than we generally estimate. By using outdated systems and equipment, companies often don't realize how much energy they are wasting and how much money is lost. 

    Each unit of electricity that can be prevented from being wasted = Money left on the table

    "Energy efficiency: Reduction of energy intensity in a specific process, product, area of production or consumption, without affecting output/consumption or comfort levels"

    Why then, do we not give energy efficiency the importance it deserves? 

    Energy efficiency & Carbon emissions

    Then, there is the issue of carbon emissions (which results in increasing the global warming) that is prevalent whenever energy is generated/consumed. It is estimated that every unit of non-conventional electricity generation (1 KWH) results in the emission of 0.82 Kg of CO2. Burning of petrol, diesel and coal results in emissions of 2.3 Kg, 2.7 Kg, 1.45 Kg of CO2 for each unit, respectively. However, it is to be noted that no carbon is emitted if power is generated using renewable sources of energy. 

    By employing energy inefficient systems, we are only contributing to the increase in carbon emissions/global warming. 

    Many Governments across the world are coming up with regulations to combat/control climate change and if your company has not been impacted by regulations yet, it shortly will. Proactive companies employ energy/carbon reduction methodologies before Government regulations come to effect - because they care about the environment, their customers and their staff members. Governments are generally slow to act on such issues. 

    How then, do we identify and increase energy efficiency? 

    In companies, manufacturing plants and organizations, energy audits can be undertaken using specialized energy efficiency consultants/energy auditors. They study the current energy usage patterns, identify the energy losses resulting due to inefficient/old systems and provide a report indicating the current energy usage and suggestions on how to increase energy efficiency, and hence save power. 

    You maybe surprised to know that certain methods suggested by the energy auditors/energy efficiency consultants can be applied with minimum or zero investment, and they might result in considerable energy (and hence cost) savings, almost immediately. Some methods, though, require considerable investments (like changing an old motor into a newer one, introducing new sensors, etc.) but even that investment is generally paid back within three years. After that, all the energy saved is sheer profit. 

    It is possible to reduce the energy consumed by both electrical energy systems (motors, pumps, compressors, HVAC, etc.) and thermal energy systems (boilers, furnaces, heat exchange systems, insulation, etc.) and consumers are encouraged to consider optimizing the energy efficiency of both types of systems/appliances employed by them. 


    This article has been written (partly) based on a presentation given by Mr. S Kannan, Certified Energy Auditor, AMSET Energy Systems & Solutions Pvt. Ltd, at 'Climate Change and its Mitigation - A serious issue for SME's' conference by TFSC, at Raintree Hotel, Chennai, India. 

    Note: Data provided in this article, including carbon equations, maybe specific to India. 
     
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