Size matters – and so does comparable performance data

Panel: 2. Policy: governance, design, implementation and evaluation challenges

This is a peer-reviewed paper.

Authors:
Stefan M. Büttner, University of Stuttgart, EEP – Institute for Energy Efficiency in Production, Germany
Diana Wang, Institute for Energy Efficiency in Production, Germany
Alexander Sauer, Institute for Energy Efficiency in Production, Germany

Abstract

The Energy Efficiency Index of the German Industry (EEI) describes a path for evidence-based decision-making on energy efficiency for companies, policy makers and financiers. This is highly relevant: more than half the GHG reductions that need to be tackled through energy efficiency to fulfil the Paris Agreement will need to come from industry and would also considerably strengthen energy productivity and hence competitiveness (IEA 2016).

To make this possible, it is essential to switch from a ‘watering can’ approach to an ‘understanding the demand side’ one. The EEI builds the foundation for shaping policies, and business models that take account of the needs, values and realities of key industrial sectors by reflecting businesses’ perception of energy efficiency opportunities and (potentially lacking) policies. It allows specific comparisons across 27 economic sectors and the 4 company sizes (as defined by EC 2003). With the Barometer, this systematic is currently being extended and prepares the ground to objectively assess, inform and boost to accelerate energy efficiency as a whole.

This paper gives an overview of the state of energy efficiency in industry and explores the gap between perception and action across sectors and company size, which indeed matters in many aspects. However, it is not always the biggest companies that are the driving force and some topics are just emerging. Do companies see an energy-related benefit for themselves in the flexibilisation of their energy consumption, a higher variability in supply through the integration of power sectors or through new services and business models coming with digitalisation? How can transaction costs and risks be reduced? How do implemented measures actually perform? These are all questions that the EEI is designed to find answers for, based on data from hundreds of manufacturing companies to develop tailored policies and business models that accelerate energy productivity and mitigate climate change.