Industrial Energy Efficiency Strategies Vary, but the Goal Remains the Same
March 18, 2019 | IHS MarkitEstimated reading time: 2 minutes
There are a wide variety of initiatives, policies and mandates around the world designed to promote energy efficiency. However, energy-efficiency strategies and investment varies by industry, according to a new report from business information provider IHS Markit. Regardless of how they differ, the goal of reducing energy use and costs remains the same.
While residential and commercial buildings consume around one-third (30 percent) of global energy, the industrial sector consumes 50%. Following are four of the key trends noted in the IHS Markit “Energy Efficiency in Industry” report, which includes industry case studies for smart metering, energy storage, motors, and switchgear:
- Advanced metering infrastructure (AMI) gives consumers greater visibility into their energy consumption, which is shown to result in a reduction in energy demand. More than 100 million communicating electricity meters now ship to consumers and industry each year.
- The installation of energy-storage technology alone does not reduce the total energy demand on the grid, but it allows better flexibility for consumers and tutilities to decide whether to use the energy from their energy storage systems or from the grid itself.
- Motors account for 60 percent of industrial energy consumption – in fact, the single largest area of improvement in energy efficiency that can be made is to upgrade from international efficiency class-one and class-two (IE1 and IE2) motors to IE3 and IE4 motors.
- Redesigning switchgear through size, weight, and power (SWaP) can lead to reductions in energy use and heat loss.
If companies continue to innovate and invest in energy efficiency in just these four areas, industrial energy demand could potentially fall as much as 14 percent, while consumers could reduce their energy costs by 10 percent. “If even half of those potential savings can be realized in the next ten years, it would be a huge offset to the growing global energy demand,” said Susanne Cumberland, senior research analyst, IHS Markit.
Different Approaches to Reach the Same Goal
A good example of industry-based differences can be seen clearly, when comparing the industrial automation industry to the energy technology industry. While the focus of industrial automation companies is on efficiency cost savings created through investing in hardware improvements, energy technology companies are increasingly focused on software solutions and energy management, to reduce energy consumption and optimize demand cycles to reduce costs.
Legislation Powers Energy Efficiency
Energy efficiency goals will only increase, as more legislation comes to fruition, and as the business case for improved hardware and software continues to grow. There will be even more focus on legislation in the coming years, as the European Union Energy Strategy, China’s 13th Five-Year Plan and other regional legislative efforts reach major milestones in 2020 and 2030.
“The financial incentives of energy efficiency differ, but the same core legislation packages are forcing action in all industries, which is reflected in their varied investment approaches,” Cumberland said. “The internet of things and other transformational technologies are also helping to expand the transition toward energy efficiency across all industries.”
About IHS Markit
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Suggested Items
SMC Korea 2024 to Highlight Semiconductor Materials Trends and Innovations on Industry’s Path to $1 Trillion
04/24/2024 | SEMIWith Korea a major consumer of semiconductor materials and advanced materials a key driver of innovation on the industry’s path to $1 trillion, industry leaders and experts will gather at SMC (Strategic Materials Conference) Korea 2024 on May 29 at the Suwon Convention Center in Gyeonggi-do, South Korea to provide insights into the latest materials developments and trends. Registration is open.
Elevating PCB Design Engineering With IPC Programs
04/24/2024 | Cory Blaylock, IPCIn a monumental stride for the electronics manufacturing industry, IPC has successfully championed the recognition of the PCB Design Engineer as an official occupation by the U.S. Department of Labor (DOL). This pivotal achievement not only underscores the critical role of PCB design engineers within the technology landscape, but also marks the beginning of a transformative journey toward nurturing a robust, skilled workforce ready to propel our industry into the future.
Real Time with... IPC APEX EXPO 2024: Going Vertical: SCHMID's Advanced Solutions for Printed Circuit Boards
04/24/2024 | Real Time with...IPC APEX EXPOEditor Marcy LaRont chats with Bob Ferguson, the president of SCHMID, about advanced solutions for PCBs and the equipment they are highlighting at this year's show. He delves into vertical no-touch handling systems and the prospect of achieving sub-10-micron lines. Inspired by SCHMID's technology, Bob expresses excitement about where the industry is today.
Big Win for Defense Production Act Budget Allocation in FY24 Budget
04/23/2024 | I-Connect007 Editorial TeamOne year ago, President Biden issued a determination that chips and packaging are critical for national security. Since that time, much work has been done to continue the conversation in Washington, elevating the importance of the entire chips value chain, and including printed circuit boards and substrates, without which chips cannot operate.
Zentech’s Board of Directors Announces the Return of Matt Turpin as President and CEO
04/22/2024 | Zentech ManufacturingTurpin draws upon over 35 years of experience in the electronics industry and has an 18-year history with Zentech. He previously served as President and CEO from 2006 to 2019 after which time he has remained active in the EMS industry as an advisor to Zentech and other industry organizations.