Energy efficiency

The countries that make up the EU-25 presently consume about 1.8 billion tons of oil equivalent a year at a cost of some EUR 500 billion. Nearly one-third of this total is used in industry. It therefore follows that, if consumption could be reduced significantly, the cost to enterprises would sharply diminish. Superior energy efficiency would thus make them more competitive. This improved cost position would boost economic expansion, which in turn would have a positive impact on employment. Estimates made by the German Sustainable Development Council suggest that more than 2,000 new full-time jobs could be created for every million tons of oil equivalent that industry manages to save.

The fourth UN World Climate Report compared the options for cutting CO2 in agriculture and forestry, industry, energy supply, transportation and building construction. It found that potential to reduce carbon dioxide emissions by 2020 is greatest – at 29% – in the latter segment. Exactly how significant these reductions can be is illustrated by simulated power and heating cost calculations per-formed for a model office block. Energy efficiency thus unfolds its impact on three levels: lower costs, less dependency on finite resources and fewer emissions.

German power consumption rose by almost one-fifth between 1993 and 2007, and is responsible for nearly half of all the country‘s CO2 emissions. Germany has managed to reduce the power consumption of individual appliances by making them more energy efficient. However, electricity consumption has risen overall because the higher technical standard of the equipment negates the savings effects achieved through greater efficiency. This is especially true in industry and commerce, which today use one-third more power than in 1993. However, Germany did see a major improvement in 2007. Primary energy consumption fell by almost 5% year on year. This can be put down to government initiatives to boost energy efficiency as well as to growing consumer awareness, with more people now purchasing energy-efficient home appliances.

The reasons why energy efficiency is still unsatisfactory are many and varied. For one thing, there is still a lack of information about where and how energy can be saved economically. For another, the market remains too opaque. Nor are there sufficient incentives for companies to buy machinery and equipment with a lower energy consumption rating. Another point is that the payback period for machinery is often so short that the economic benefits of more efficient equipment are effectively negated. One further issue is that too few companies know about or use suitable tools to factor energy efficiency calculations into the lifecycle analysis of capital investments.

German companies are already making a major contribution to climate protection – sometimes completely hidden from the public eye. They are saving energy by intelligently combining proven and innovative technologies. Many would not even see themselves as providers of environmental technology, however. A broad definition of energy efficiency technologies would include the following segments:

At a glance

Energy-efficient technologies open up vast potential to save energy, especially in buildings.

The global market volume – currently EUR 540 billion – will almost double by 2020, making this the lead market with the largest volume.

International sales opportunities exist primarily in the industrialized markets of Europe and North America.

German companies rank among the technology leaders in this area and have cornered one-fifth of the market.

Companies that operate in the energy efficiency market are highly profitable. Almost one-third generate returns on sales of over 10%.

Insulation materials and building services, i.e. heat insulation systems, heating and cooling systems, insulated glazing

Energy-efficient products, i.e. home appliances, electronic equipment (such as information and communication systems), energysaving lamps

Energy-efficient cooling systems as an alternative to traditional air-conditioning (for instance solar cooling)

Energy-efficient methods and production processes

Energy-efficient technologies that can essentially be used in any industry, such as pumps, electric motors, compressed air systems and measurement and control systems

Energy services such as contracting and energy consulting