Institute for Energy Efficiency in Production on the current Energy Efficiency Index

Source: Energy & Management Powernews, September 16, 2022

Companies have increasingly ambitious efficiency targets, however, there is a lack of implementation. This has several reasons, shows the current energy efficiency index.

Energy efficiency is the most important means to counter the crisis. According to the current Energy Efficiency Index, many entrepreneurs and SMEs are convinced of this. However, the survey also revealed a great need for information. Many entrepreneurs do not seem to know exactly where to start. In addition, the "focus is too much on the electricity side," said Alexander Sauer, head of the Institute for Energy Efficiency in Production (EEP) at the University of Stuttgart, on September 14 at the presentation of the Energy Efficiency Index.

The EEP has been surveying current and planned energy efficiency activities in German industry every six months since 2013. The Energy Efficiency Index (EEI) is compiled in cooperation with the German Energy Agency (Dena), the Federation of German Industries (BDI), Fraunhofer IPA and TÜV Rheinland, as well as other partners.

A total of 913 participants responded to the survey during the current survey period from April 4 to May 17.  May 2022 on the three sub-indices and in particular on the topics of crisis, decarbonization and the need for support in their own companies.

According to the current figures, the investment index has now stabilized at a significantly lower level following a sharp drop during the pandemic. The productivity index, on the other hand, continues to rise, meaning that companies have increasingly ambitious efficiency targets. Being efficient has long been a pure necessity. However, there is a wide gap between the expectation and the actual situation of energy efficiency in the companies - this is also a result of the survey.

Reaction to the war: more efficiency measures

The majority of companies expect a further increase in the importance of energy efficiency in the coming twelve months. This is little surprising in view of the uncertain energy situation in the coming winter, caused in particular also by the Ukraine war, and the already rapidly increased energy prices, but nevertheless striking, according to the experts of the EEP.

Compared to the survey a year ago, more than twice as many companies and thus the absolute majority estimate the importance of energy efficiency as relatively large. Consequently, more than half of the companies are responding to the current crisis situation and price and supply uncertainty with efficiency-enhancing measures. However, energy-intensive companies are the most hesitant to react.

There is an overall high willingness to invest in measures. According to the index, there is great interest in particular in renewable self-generation of electricity, system optimization and energy storage. Considered interesting but rarely explored are the use of direct current and hydrogen.

Waste heat and flexibilization of energy demand "uninteresting"

What surprised the experts: The use of waste heat and the flexibilization of one's own energy demand are rated as uninteresting by the majority. "This is surprising because there is a high scientific-economic consensus for the potentials of these instruments," Sauer explained. However, they are apparently not being tapped by the industry. This is tragic in that these two measures could be particularly helpful in saving gas in a gas shortage situation. More than 60% of industrial energy consumption is for (process) heating and cooling. Explanation for it could be lack of information to potentials, procedure or a lack of accordingly qualified personnel.

Companies have according to own statement altogether a large need for consultation. Particularly in the case of hydrogen and direct current supply, there is a high demand both for more information and for advice and implementation support.

"The manufacturing industry in Germany is prepared to do its part for a climate-neutral economy. However, it needs politicians to set the course for this," summarizes EEP head Professor Sauer. "The internationally uncertain energy supply due to the Ukraine conflict is unavoidable in the short term. Both renewable energies and energy efficiency are the levers to reduce dependencies and successively ensure a sustainable supply."

For more information on the Energy Efficiency Index 2022 survey, visit the Institute for Energy Efficiency in Production page.

Author: Heidi Roider