Greater Transparency Increases Energy Efficiency

High energy costs, customers who are more environmentally aware and new sustainability regulations currently pose challenges for companies. Transparency of consumption data improves energy efficiency.

Save energy. That, said 71 percent of firms the German Chamber of Commerce and Industry (DIHK) polled at the beginning of this year, was their response to the current high prices of electricity, gas and fuel. The DIHK survey was of around 27,000 companies in all industries and areas of Germany. Fifty-three per cent said they were passing the costs on to their customers and 36 percent were investing in energy efficiency measures. One in five, however, is also deferring scheduled investments.

The background to the question is that energy costs have soared over the past 12 months and companies have had to take an ever-closer look at their gas and electricity bills in order to economize on energy resources. In addition to the high costs there are other reasons why enterprises are keen to improve their energy efficiency. Customers increasingly demand sustainable products and services and laws and regulations governing sustainability and energy saving are growing steadily stricter.

Energy is one of many companies’ most important resources and at the same time one of their main cost factors with a material influence on cost-effectiveness. According to a survey of over 400 German firms by the credit insurer Atradius nearly 90 percent of respondents feel the recent steep rise in energy prices is a burden, and over half of them see it as a serious or very serious burden. The good news is that measures to boost energy efficiency can cut costs, save energy and strike a more positive environmental balance.

Sustainability has become an important issue for customers. More and more consumers attach importance to eco-friendly products and services and would like companies to take sustainability into account in their value chain. Companies that respond to these requirements and offer sustainable products can gain a competitive advantage. They can also improve their image and earn customer trust and confidence by saving energy, using renewables and reducing their ecological footprint.

Germany’s Fuel Emissions Trading Act (BEHG) and the EU’s Taxonomy Regulation are but two examples of increasing sustainability regulation. Companies must abide by these laws and regulations to avoid penalties and conduct their business activities in a resource-friendly way.

Most companies consume energy in their business premises, their production and their vehicle fleets, so greater consumption efficiency is the simplest way to cut energy costs. Companies can improve their energy balance by means of energy-efficient technologies and measures. They could include LED lighting, efficient HVAC systems, production processes optimized to save energy, and low-consumption vehicles.

To increase energy efficiency, companies must, however, know where and how they consume energy. That requires transparent acquisition of consumption data. Energy consumption data can, for example, be captured by remote monitoring and technical building management. Using the data collected, companies can identify savings potential, derive specific measures from it and monitor their efficacy. Digital technologies such as smart control, intelligent building management and remote monitoring via the Internet of Things (IoT) can help to reveal the actual consumption, that being the only way to improve energy efficiency in the long term.