Gas prices are often a reason for companies to act.

03/16/2023

Source: Energy & Management Powernews

Many companies are aware that energy efficiency measures are important. However, this is not reflected in large investments. Despite energy crisis.

Energy efficiency is important to companies nationwide, but the money for further investment is held back in uncertain times. So the main result from the current survey of the Institute for Energy Efficiency in Production (EEP) of the University of Stuttgart. For almost ten years, the EEP has regularly surveyed the energy efficiency activities of German industry and summarized them in an Energy Efficiency Index (EEI).

The EEI is compiled in cooperation with the German Energy Agency (Dena), the Federation of German Industries (BDI), Fraunhofer IPA, Tüv Rheinland and other partners. More than 900 participants commented during the current survey period (winter 2022). "This makes the statements of the survey extraordinarily meaningful," said Kerim Torolsan from EEP on March 14 when presenting the results. The special questions in the winter addressed high gas prices and uncertain gas supplies.

The results show that chief executives place a high priority on the issue of energy efficiency - especially because of the turmoil in the energy markets and the resulting increase in energy costs.

In many cases, gas prices are a reason for companies to take action. The EEP survey therefore asked them about their alternatives: for energy source changes, electricity is preferred over fossil fuels or biomass. However, only 22 percent of companies use a heat pump, for example, to generate process heat. Half of the companies have already introduced digitized recording of their energy consumption data and monitor their electrical consumption or are planning to do so. The data basis is a basic prerequisite for saving further energy.

Focusing on low-cost measures for longer

However, it can also be seen from the index that many companies are holding back on investing heavily in energy efficiency measures because of further problems and uncertainties. "High energy prices and the associated uncertainty are obviously triggering concerns about new investments and are reflected in a lower investment index," said Alexander Sauer, director of the EEP, explaining the figures. This is a trend that has been observed since the beginning of 2021, he said.

Although a large proportion of companies have responded in recent months with more cost-effective measures, such as turning down their heating or lighting. But high expenditures, such as investing in a new efficient combined heat and power (CHP) plant, have been put on hold in many cases.

Nevertheless, many German companies are looking for ways out of the gas crisis. More energy efficiency is still the "favorite solution". But because prices are still high, there is also bad news: the majority of companies still want or rather have to pass on the additional energy costs for manufacturing products to their customers. In which framework they do this, is however very different and depends also on whether energy saving measures are implemented.

Because not all enterprises became active - also the index results show: "The new energy saving regulation regulates the lighting and temperature in public areas, a third of the enterprises remains however inactive and does not plan measures", so the EEP in its evaluation. About 40 percent of these companies are passing on more than 75 percent of their additional energy costs or other additional costs to their customers, according to the report.

"We are feeding off the investment-intensive years when it comes to energy efficiency improvements. Once the low-investment measures that are currently being increasingly addressed again have been implemented, it will probably take higher investments in energy efficiency again to make significant progress," EEP Director Sauer concludes.

Author: Heidi Roider