Energy efficiency is often described as the "first fuel" of the global energy transition, as it offers some of the fastest and most cost-effective ways to reduce CO2 emissions. It not only helps lower energy bills but also strengthens energy security by reducing dependence on fossil fuels. However, the energy transition, particularly in industries, remains a complex challenge with a myriad of barriers slowing the adoption of energy-efficient technologies.
One often-overlooked opportunity can be found in electric motors, which account for over 45% of global electricity consumption and power a vast range of industrial applications. Improving the efficiency of these motors present significant energy savings with the potential to reduce global electricity consumption by up to 10%.
In this interview, Mike Umiker, Managing Director of the Energy Efficiency Movement (EEM), shares insights on global efforts to accelerate energy efficiency progress and the opportunities it presents for Taiwan. The EEM, founded by ABB in 2021, serves as a collaborative platform that unites like-minded stakeholders committed to driving innovation and action toward a more energy-efficient future. Today, the Movement has grown to include over 600 organizations and companies worldwide.
Barriers to energy efficiency adoption
While the benefits of energy efficiency are widely acknowledged, its adoption is not universally straightforward. The logic behind adopting energy-efficient practices may not resonate across all sectors and regions. Different drivers influence adoption in different ways, and what works in one context may not be effective in another.
Despite the availability of numerous energy efficiency solutions and technologies, their widespread and rapid implementation continues to face significant obstacles. In the interview, Umiker highlights findings from the Energy Efficiency Movement's recent survey in a report titled "Efficiency NOW". He explains that many companies, although aware of the advantages, encounter internal barriers that hinder progress. These include financial constraints, infrastructure limitations, a lack of skilled personnel, strategic gaps and challenges related to data and control systems.
The survey highlights 5 main barriers to adopting energy efficiency measures. The first is financing with 43% of respondents citing it as the highest barrier and stating uncertain returns on investment as a key challenge. Second is infrastructure, with 19% of companies being affected. Interestingly, about 1 in 2 companies struggle with shortage of skilled workers, hindering energy efficiency ideation and implementation.
Responding to these key obstacles, Umiker suggests three targeted action to accelerate energy efficiency adoption:
1.Establishing dedicated budgets or exploring alternative financing models such as equipment-as-a-service to enable access to energy-saving technologies and services without the burden of large upfront capital investments.
2.Investing in data infrastructure and real-time analytics to empower organizations with continuous performance monitoring and deeper insights into energy consumption patterns, helping to identify areas for improvement.
3.Driving strategic alignment through clear KPIs and ROI modeling, ensuring that energy efficiency initiatives are integrated into broader business objectives and performance metrics.
Scaling Up Industrial Implementation
With around 300 million industrial motor-driven systems in operation worldwide, global energy consumption could be reduced by up to 10% if these systems were replaced with high-efficiency equipment. This is where ABB plays a pivotal role, Umiker noted.
As of July 1, 2023, electric motors with power ratings between 75 kW to 200 kW sold within the EU are required to meet the IE4 energy efficiency standard, an upgrade from the previously mandated IE3 level. In response to this, ABB introduced next-generation electric motor systems, including the newly developed IE6 SynRM motors, as part of its Top Industrial Efficiency (TIE) initiative. These systems exceed standard performance benchmarks, helping customers reduce electricity usage, operating costs, and total cost of ownership (TCO), all without compromising performance or adding complexity. Notably, one of ABB's TIE motors, destined for a steel plant in India, achieved a record-breaking efficiency rating of 99.13% during testing, surpassing ABB's previous world record of 99.05% set in 2017.
In Taiwan, the Minimum Energy Performance Standards (MEPS) for low-voltage, three-phase, squirrel-cage induction motors with a rated output power of 75kW or greater will require IE4 efficiency levels, starting July 1, 2025, while motors below 75kW will need to meet the IE3 standard. The regulatory shift has prompted proactive investments from the private sectors including several semiconductor manufacturing companies which are now investing in large scale energy efficiency initiatives. New purchase orders have been placed for a total of 122 high-efficiency drives, intended for pump and fan applications. These ABB Variable Speed Drive (VSD) Inverters are designed to save energy, reduce operating costs and minimize unscheduled downtime.
According to Vincent Wu, Head of ABB Taiwan's Motion business, these developments are helping to sustain strong momentum for energy efficiency adoption across the country. Taiwan's progress is already notable, with an average annual energy efficiency improvement of 5.4% over the past five years, surpassing the 4% target set at the 28th U.N. Climate Change Conference (COP28).
Joining the Energy Efficiency Movement is Simple and Seamless
Joining the Energy Efficiency Movement (EEM) presents a powerful opportunity to advance energy efficiency through shared knowledge, collaboration, and customized training. Movers gain access to practical insights and valuable resources that support the swift and seamless implementation of energy-efficient solutions. By becoming part of a global network of like-minded organizations, companies or organizations can exchange best practices, form strategic partnerships, and accelerate meaningful change.
Visit the EEM website today to learn more and take your first step toward a more energy-efficient future. https://www.energyefficiencymovement.com/
Mike Umiker, Executive Director of EEM, with Yu-Ren Liu, Sales Manager of GEORDING MACHINERY. ABB
Mike Umiker, Executive Director of EEM, with Victor Wu, Vice President of SUCOM ELECTRIC. ABB
Mike Umiker, CEO of EEM, with Vincent Wu, Vice President of ABB Taiwan Motion Business. ABB
Article edited by Joseph Tsai