In an era where the imperative to combat climate change is more urgent than ever, energy efficiency stands out as one of the most powerful tools we have. Yet, despite its potential, significant barriers remain that prevent widespread adoption.
At the International Energy Agency’s 9th Annual Global Conference on Energy Efficiency conference, the discussions between global leaders from government, business, and civil society present, centred around the key conclusion from COP28: the need to double energy efficiency progress by 2030.
However, as the Energy Efficiency Movement’s recent report, “From Insight to Implementation: Business Perspectives on Energy Efficiency Investments,” shows, there are significant barriers in the industry preventing us from achieving this goal.
The report revealed that while there has been a seven percent increase in businesses investing in energy efficiency since last year, there are still substantial obstacles. Notably, 53 percent of businesses cited high costs as a barrier, while 34 percent pointed to downtime or disruption concerns. These obstacles are not barriers, but rather missed opportunities.
The economic case for energy efficiency
Most life cycle costs for motors and drives – nearly 70 percent of all electrical energy used in industry – comes from the energy required to power them. Investing in high-efficiency motors and variable speed drives (VSDs) can lead to substantial savings. Although the initial purchase price of these high-efficiency motors and VSDs is slightly higher, the energy savings they provide typically pay for themselves within one to three years and in some cases, in just a few months.
A prime example of successful energy efficiency implementation is the Taweelah desalination plant in Abu Dhabi, which utilises ABB drives and premium efficiency motors. These motors have significantly reduced energy consumption by up to 40 percent compared to traditional direct online methods. As one of the largest desalination plants in the world, Taweelah exemplifies cutting-edge efficiency and cost-effectiveness. It has not only increased desalinated water production capacity from 13 percent to 30 percent but also set new benchmarks in the industry with lowest amount of energy per cubic meter of water produced.
This achievement aligns with the UAE’s strategic objectives to develop a more sustainable, self-reliant, and efficient water and energy sector. The plant, located approximately 45 kilometres north of Abu Dhabi city, will meet the water demands of more than 350,000 households, highlighting its crucial role in supporting local communities and industries while advancing national sustainability goals.
Another notable example is the Shams Development District Cooling Plant (DCP) in Dubai. By adopting high-efficiency motors and advanced plant systems, the DCP set a new standard for energy efficiency in district cooling. The UAE government has been instrumental in driving these improvements as part of its efforts to reduce CO2 emissions, optimise operational costs, and maximise overall equipment effectiveness (OEE), demonstrating how policy and technological advancements can work together to achieve significant energy savings and environmental benefits.
Modernisation improves performance and minimises disruption
Our research shows that energy and power businesses will wait until their motor-driven equipment comes to the end of its lifecycle before updating. Modernising existing equipment rather than waiting for end-of-life replacement can minimise downtime and improve performance. One way is by simply updating the internal components of a VSD, extending equipment life by 10 to 15 years, offering all the benefits of new technology – such as lower harmonics and improved reliability – without the need for complete replacement. This can often be carried out during scheduled maintenance, reducing disruption.
A VSD can typically reduce power consumption by 25 percent. Modernising from IE1 (Standard Efficiency) to IE4 (Super Premium Efficiency) motor improves efficiency from 88 percent to 93 percent. Modernisation of the ACS800 drive helps to avoid up to 55 percent of CO2 emissions, compared to a full replacement.
For instance, USG Industrial Utilities modernised their equipment by replacing old motors with IE4 technology and using ACS880 drives during a planned shutdown to reduce downtime. This upgrade cut yearly electricity consumption by 4.5 percent, equivalent to the annual energy use of 130 homes (around 360 Mega Watt Hours) in the Netherlands.
We are making progress, but we need to accelerate
Despite progress, more work is needed to reach our 2030 goals. Encouragingly, the number of businesses uncertain about how to improve energy efficiency has decreased from 24 percent to 19 percent, and 93 percent now feel they have access to support and information. However, to overcome the high costs and downtime barriers, we must continue to advocate for and invest in energy efficiency measures.
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