IN PURSUIT OF ENERGY EFFICIENCY

Kiran Dhanapala elaborates on how energy efficiency can be achieved

Since energy is responsible for about 70 percent of global emissions, energy efficiency (EE) plays a significant role in energy transition. EE is the foundation for decarbonising economies and it constitutes a key pillar in Sri Lanka’s National Energy Policy (2019).

Sustainable Development Goal (SDG) 7.3 calls for a doubling of the global rate of improvement in EE. The global target is to double efficiency from two percent in 2022 to four percent annually… until 2030.

When energy intensity falls, EE improves because less energy is used to produce the same volume of economic output. Sector specific EE indicators provide more relevant metrics for tracking.

EE comes with many benefits. It can increase services delivered by each kilowatt of electricity and improve energy access. And it reduces pollution and greenhouse gas (GHG) emissions from fossil fuels, improves air quality and can raise asset values. But mainly, it reduces energy costs, and offers countries greater resilience to weather economic and climate shocks.

The International Energy Agency’s (IEA) Energy Efficiency 2023 report notes that rising temperatures have increased cooling needs and lowered heating requirements.

Heat waves affect countries differently. The IEA notes that a 1°C increase in average daily temperature above 24°C leads to a rise of around four percent in electricity demand in Texas while in India, there is only a two percent increase.

Recently, the UN Global Compact’s SDG Stocktake report assessed the private sector’s contribution to SDGs. It found that the world isn’t on track to achieve the SDGs by 2030 as it has made only moderate progress on SDG 7: affordable and clean energy.

The report notes that despite the trend towards clean energy, there’s greater movement to revenue alignment with energy efficiency. The private sector’s impact on EE is strong in building sustainable cities – such as in the case of sustainable buildings.

In Sri Lanka, EE is vital in the light of the economic crisis, the high foreign exchange cost of imported fossil fuels and electricity rates. The economic recovery can be aided by EE measures that reduce the fiscal burden.

And in energy intensive sectors that include public, commercial and industrial facilities, electricity consumption accounts for about 60 percent of total electricity demand.

Space heating or cooling and refrigeration equipment in commercial buildings accounts for between 50 and 60 percent of energy related expenses of that infrastructure.

The World Bank estimates that energy consumption will increase fourfold in commercial buildings by 2034 due to urbanisation trends, global temperature rises and higher incomes. EE and green building initiatives will require greater investment and policy action, which will eventually stimulate a greening of the economic recovery process.

It has also outlined a road map to make public, commercial and industrial buildings more energy efficient with a focus on private sector action. The three phase action plan addresses five facets: laws, policies and regulations; knowledge and information; economics and finance; institutions and partnerships; and technology and systems.

This exercise is estimated to cost US$ 597 million to implement to generate electricity savings of 578 gigawatt hours (GWh) annually, avoid GHG emissions of 3.4 million tons and benefit 2.9 million people.

Economic analyses estimate a net economic benefit of 757 million dollars over the investments’ lifetime of 13 years – or that every dollar invested yields US$ 2.27 in economic value to Sri Lanka’s economy.

EE saves energy costs in organisations and it is seen as ‘invisible gold’ or low hanging fruit for enterprises that are beginning their sustainability journey.

The United Nations Industrial Development Organization (UNIDO) is implementing energy savings and pollution control measures in the industrial sector in Sri Lanka.

Further, individual entities are undertaking voluntary EE, given the substantial energy savings that impact the bottom line. Sri Lanka already has leading businesses in various sectors undertaking best practices. Scaling up is needed, and micro, small and medium enterprises (MSMEs) should be offered access to sustainable finance.

There is also scope to incorporate energy conservation into school curricula and mainstream the subject. Teachers must be trained, mentorship programmes set up and links to businesses undertaking best practices established.