Businesses from all industries have been under pressure from ever-changing energy prices for decades. Today, combined with stricter regulations and environmental issues, high energy costs can become an obstacle to business growth.
With that in mind, energy efficiency, which is a significant cost control factor, has become a strategic necessity as it offers businesses a way to save capital, reduce their carbon impact, and, as a result, increase their chances of gaining a competitive edge.
According to the International Energy Agency (IEA) report for 2024, the ability to achieve the same economic results while using less energy will play a major role in reducing the world's need for oil and gas by 2030.
Efficiency improvements in particular will account for 70% of the reduction in oil use and 50% of the drop in gas use by 2030. This will not only help humanity to maintain an environmental balance, but it will also help companies to reduce costs and achieve higher profit margins.
Expert networks can help businesses to attain these positive changes in their operations. Let’s find out how.
Global energy efficiency investment
Nearly US$660 billion was the amount invested in global energy efficiency in 2024, according to data from IEA.
However, despite the amount being a 4% increase compared to 2023, to reach “net zero” – when carbon emissions are reduced to a small amount of residual emissions that can be absorbed and stored by nature – this figure must reach US$1.9 trillion per year over the next five years.
Developing nations have managed to show the most impressive growth, even though they account for just 5% of global investment:
In Africa – a 60% increase in investments into energy efficiency in 2024
In the Middle East – a 40% increase in investments
In Central/South America – a 20% growth in investments.
Experts anticipate that China and the Asia-Pacific region are the areas that will show an almost 10% growth. At the same time, it is expected that investment in advanced economies will remain flat.
Energy Efficiency Trends Across Industries
With the help of a range of technologies and strategies, energy efficiency can help to cut waste and optimize consumption and costs, here are some key strategies being used across industries.
1. Smart building technologies
Using IoT-enabled sensors, smart meters, and building management systems, businesses can monitor power usage in real-time, as well as increase the efficiency of their heating, ventilation, and air conditioning (HVAC) systems.
These tools allow companies to analyze data and reduce power consumption for operational processes.
For instance, Microsoft has secured a deal to develop 10.5 gigawatts of new renewable energy capacity and is implementing measures to increase the water and energy efficiency of data centers.
2. On-site renewable energy systems
Solar panels for electricity generation, batteries for on-site energy storage, and EV charging stations are gaining popularity due to their ability to reduce reliance on electrical grids and mitigate price volatility.
According to IEA, battery costs have fallen by 95% over the past 15 years, making this technology more accessible.
3. Electrification and low-emission logistics and fleet
Industrial and transportation sectors, over the past several years, have demonstrated considerable improvements in transitioning from fossil fuel-based systems to energy-efficient electricity alternatives.
China's quick industrial electrification and EV adoption is a clear illustration of the potential for large reductions in energy consumption.
Did you know that in 2023, around 35% of China's electricity came from renewable and green sources?
At 13%, hydropower is the biggest source of clean energy in China, with wind and solar energy having a combined share of 16%, according to Ember Energy, a global energy think tank.
China produced 37% of the world's wind and solar electricity, which was enough to power an industrialized country such as Japan.
4. Energy-efficient equipment upgrades
One of the fastest-growing trends is upgrading old equipment, which is particularly being seen in energy-intensive industries.
For instance, businesses have achieved significant energy and cost savings by updating inefficient HVAC and refrigeration systems due to supportive laws such as the European F-gas regulations.
5. Advanced software for energy monitoring
Software platforms can generate useful insights within a factory since they can track consumption patterns, evaluate results, identify where there is less efficient energy usage, and then make suggestions for energy optimization.
For example, Longyuan Power, a division of China Energy Investment Corporation, has created a stand-alone production safety monitoring system.
By connecting to data from different kinds of new energy equipment, this system makes it possible to centrally and automatically track the generation and storage of wind and solar power.
The Role of Expert Networks in Facilitating Energy Efficiency Initiatives
Expert networks can be valuable tools to guide various organizations through their energy efficiency journeys.
This is because networks such as RightAngle are a portal to technical consultants, industry leaders, and specialist knowledge in fields including technology selection, project management, and energy audits.
If a client wants to work on customized energy management strategies, they will need insights into the latest technologies and how to navigate regulatory frameworks.
By getting in touch with trusted professionals via expert networks, the client can obtain valuable information that could help to increase the pace of its effective energy-saving measures implementation while avoiding costly mistakes.
Practical Advice on Leveraging Expert Networks to Increase Energy Efficiency
Search for expert networks with experience in energy efficiency within your sector. This will ensure that the information you get is tailored to your organization’s requirements.
Carry out detailed energy audits of your facilities to identify energy inefficiencies and areas that could require certain improvements.
Collaborate with professionals to put comprehensive energy solutions into practice. For instance, you may want to integrate on-site renewable energy with the latest monitoring systems.
Get in touch with experts to learn more about how you can reduce the financial risks and initial costs for the business.
It is important to never stop learning, which is why you should also consider consulting experts on a regular basis to remain up-to-date with changing regulations, newly developed technologies, and best practices.
Final word
Due to changes in consumer behavior, technological breakthroughs, and stricter environmental laws, the energy efficiency landscape is predicted to undergo a major change by 2030.
This is an opportunity for businesses to save a significant amount of money in their operations. Expert networks can thus help companies to lessen their environmental impact and successfully navigate regulatory landscapes by implementing the necessary technologies and integrating on-site solutions.