8 long-term benefits of energy efficiency upgrades have for industries

Industrial operations contribute to nearly one-quarter (24%) of global greenhouse gas emissions. That’s as much as the world’s transportation sector produces when factoring in every car, plane, ship, and train together. As a result, industries get to hear that energy efficiency measures and net-zero upgrades are the silver bullets for operational and sustainability problems. 

While it’s not an immediate fix, still it can overlook the nuanced, incremental nature of the efficiency gains. The benefits of energy efficiency for industry unfold over time and go far beyond the initial hype. Here are the top 8 benefits and long-term advantages of focusing on energy efficiency in industrial operations.

As industrial operations implement effective energy efficiency strategies, they pave the way to improve their decarbonization efforts and avail many other long-term benefits.

Benefit 1: Embodied carbon reduction

The best ways to make energy-efficient choices are during the design-build phase. Embodied carbon – the emissions related to the construction process include-

• Manufacturing
• Materials transporting
• Concrete, steel, insulation, and disposal

When businesses consider embodied carbon, 80% of a building’s emissions are already baked into a building on completion. So, early design-build decisions integrating energy-efficient solutions and low-carbon technologies from the outset are ideal.  

By working on electrical distribution and reduction of embedded carbon, industries can lay the foundation for a sustainable operation model. The strategic approach resolves immediate energy use and locks in lower carbon footprints for the long run. 

Benefit 2: Immediate efficiency upgrades with power quality

Power quality and power factor measure the health of an electrical infrastructure. They affect the longevity and performance of equipment. Poor power quality includes 

• voltage sags
• Surges
• Harmonic distortion
• Disrupting operations
• Damaging sensitive equipment.   

Similarly, a poor power factor draws more power from the grid than usual. It means increased electricity bills, more stress on the power infrastructure, and expensive power factor surcharges from electric utilities.

Checking and correcting power quality and power factor significantly extends the lifespan of motors and electrical devices. Additionally, it cuts down on unnecessary maintenance costs and takes processes out of service. 

Benefit 3: Optimized predictive maintenance

Energy efficiency enhances operational performance and enables better maintenance practices. It ensures smooth and cost-effective operations. More benefits include- 

• Predictive maintenance systems anticipate and address potential issues before they cause downtime.
• Advanced analytics optimize maintenance schedules, reducing operational disruptions.
• Proactive monitoring of electrical systems prevents major failures and costly repairs.
• Continuous assessment of energy usage improves overall efficiency and resource allocation.
• Long-term savings accrue through reduced energy consumption and extended equipment lifespan.

Benefit 4: Adoption of renewable energy and backup systems

Using renewable energy sources and backup systems is an effective strategy. It enhances resilience and also supports peak load management and energy independence. The evolving regulatory landscapes increasingly aid renewable investments. Today, these have proven to be financially attractive and operationally prudent options for industrial facilities.

For example, sustainable energy systems allow localized control over energy sources. Furthermore, microgrids are decentralized. It reduces energy transmission losses and enhances energy security, ensuring a constant energy supply, even during power grid outages. Microgrids also support the demand response strategies by adjusting energy production and use in real-time, optimizing efficiency, and reducing costs.

Benefit 5: An accelerated payback period

There is this misconception that the return on investment (ROI) for energy efficiency measures takes very long, like five to ten years. But in reality, it’s much quicker. On average, ROI ranges between 18 and 20 months maximum. 

The accelerated ROI is possible for several reasons, such as

• Reduced energy bills
• Operational improvements
• Regulatory compliance
• Longer equipment lifespans
• Government incentives that support energy-saving measures.

Fast payback is proof of the actual value of energy efficiency. It is a compelling incentive for industries to implement these measures. It dispels myths that held back investments earlier and allows businesses to consider energy efficiency a strategic priority, quickly assuring them of financial returns.

The bottom line

The benefits of energy efficiency for industry are the sustained, long-term advantages and the shift it creates within companies. The measures are strategic imperatives delivering enduring value and fostering innovation, resilience, and higher competitive advantage.

If you want the most effective and affordable energy-saving solutions for your business, contact Keiken Engineering.