Recent projections show that the world’s energy demands are about to increase by close to 25% between now and 2030. Population and wealth growth are the leading factors behind the increased need for energy. Additionally, issues related to pollution and climate change are compelling companies and investors alike with respect to how they produce and use energy.
Energy efficiency is playing a vital role in helping the world achieve its power needs and progress.
Increase in Fuel Prices
The prices of energy have kept rising over the years even when oil prices have dropped as was the case in 2014-2015. Such sudden fluctuations can be difficult for businesses to deal with. Also, declines in energy prices have called into question whether the efforts in energy conservation and efficiency are worth it.
According to various financial analyses, energy costs form a considerable chunk of operating expenses. Worldwide, cement, chemical, mining and metal companies, for instance, spend almost 30% of their operating budget on energy. Additionally, the percent of the budget spent on energy is higher in developing nations due to the cheap cost of labor.
The reports and findings show that it is not a pipe dream for manufacturing entities, which account for almost half of the world’s energy usage, to meet energy requirements in a way that is environmentally friendly and economical as well. Advanced technology could substantially reduce energy usage and save companies more than six hundred billion dollars per year.
There are technologies currently in place that can help companies reduce energy consumption. The ideas cover a range of manufacturing and production companies like cement, mining, oil refining and chemicals. Nonetheless, firms are facing the challenge of how to put energy efficiency technology in place how to renew the technology so that it stays relevant year in and year out.
1. Think Circular
Consider your product to be a future source that can be used many times. In other words, when developing a product, strive to move away from the traditional linear supply chain. Take, for example, a data services provider. Put in place the think circular standard by using an analytics system to develop a facility that restructures energy to its core function. This results in more capacity and less operational expenses.
2. Profit Per Hour
Whenever making any changes, remember to create a comprehensive review of the full profit equation. During the study, evaluate aspects such as yield, throughput and energy. Nonetheless, profit should be of the highest priority before effecting any changes.
3. Think Lean
It is vital for an organization to create a resource productivity plan. Lean thinking and green thinking are based on similar principles and will blend in together well.
4. Think Holistic
When making changes, ensure that they not only focus on a specific aspect. Instead, you should also focus on the management system, behavior and mindsets.