ao link
Business Reporter
Business Reporter
Business Reporter
Search Business Report
My Account
Remember Login
My Account
Remember Login

Energy efficiency is a Net Zero game changer

Sponsored by ABB

Energy efficiency isn’t just about climate change; it’s the invisible fuel that drives business performance

Linked InXFacebook

A summer of record high temperatures and other weather extremes has made climate change very real. There is a growing consensus that more needs to be done to meet the emission targets set in the Paris Agreement.

 

Multiple strategies are required, including promoting the transition to renewable energy and electrification of transport and industry. However, for business leaders it is also vital for these actions to make economic sense.

 

There is something I believe can make a major difference but is still not getting the attention it really deserves: energy efficiency. Or in other words, using existing technology to do more with the energy resources we already have. It’s an approach that is both good for the planet and good for business.

 

According to the latest report by the International Energy Agency (IEA), energy efficiency will drive down greenhouse gas emissions by some 40 per cent over the next 20 years. It’s no wonder that they refer to energy efficiency as the “first fuel” in tackling climate change.

 

At the same time as we are facing climate change, the geopolitical situation is in flux. Energy shortages have driven prices through the roof, creating an affordability crisis that threatens the viability of many businesses. There are even fears that it might cause governments to hold back on plans for Net Zero.

 

I believe that industry can lead the way in combatting these twin crises by adopting energy-efficient technology. The reason is that electric motors are widespread throughout industry, where they consume more than 45 per cent of the world’s electricity.

 

These motors are prime targets for implementing energy-efficiency measures that both reduce emissions and offer a payback that only accelerates as energy costs soar.

 

Revitalising the workhorses of industry

Electric motors are the workhorses of modern industry. From steel mills to food and drink production they run processes, drive heating, ventilation and air conditioning (HVAC) systems that keep us warm or cool, and power the countless pumps that supply fresh water.

 

However, many of the world’s 300 million motor-driven systems in operation today are old, inefficient and consume much more power than required. That means a lot of energy is simply going to waste. Investing in energy-efficient technology can make a real difference – potentially cutting global electricity consumption by as much as 10 per cent.

 

Adopting high efficiency motors is one element. However, variable speed drives (VSDs) also play a vital role as they can adjust motor speed to match the load. With typical savings of 25 per cent or more, VSDs sometimes yield payback times of less than a year. In the words of one of my colleagues, “using a motor without a drive is a like having a single switch that turns all the lights in your house on and off at the same time, rather than having a switch in every room.”

 

Aim for the very best performance

Legislation is helping to guide the market. For example, the EU introduced IE3 as the minimum efficiency level for motors in 2021, and this will rise again in 2023. But why stop there? Smart operators are already opting for IE5, the best performance currently available.

 

The good news is that the energy efficiency message is clearly resonating with industry. This was confirmed by ABB’s recent global energy efficiency survey of 2,000 businesses. It found that 97 per cent are investing or planning to invest in energy efficiency, while 89 per cent will increase spending over the next five years.

 

Technology is already available that can help businesses save energy and boost productivity, such as when our ultra-efficient synchronous reluctance (SynRM) motor is teamed with a VSD.  

 

To show what is possible, a large Australian producer of soups, stocks and meals has set ambitious sustainability targets. It determined that one plant would need to cut energy consumption by 20 per cent by 2025. The company upgraded its refrigeration compressor motors with a SynRM motor and drive package. This simple change produced annual energy savings of 14 per cent and eliminated 131 tonnes of CO2 emissions per year.

 

In the challenging times ahead, energy efficiency offers a smart way to balance the priorities of Net Zero and good business. This will be crucial in accelerating the transition to a more sustainable and productive future. 


 

Learn more about ABB IE5 SynRM motors and drives here.


 

By Stefan Floeck, Division President IEV Low Voltage Motors, ABB Motion

Sponsored by ABB
Linked InXFacebook
Business Reporter

Winston House, 3rd Floor, Units 306-309, 2-4 Dollis Park, London, N3 1HF

23-29 Hendon Lane, London, N3 1RT

020 8349 4363

© 2025, Lyonsdown Limited. Business Reporter® is a registered trademark of Lyonsdown Ltd. VAT registration number: 830519543