On Our Radar: Energy Efficiency Isn't Sexy... It's Revolutionary

16 Aug 2011 – Mohammed Al-Shawaf

Energy efficiency is not a sexy topic, so when the U.S. Department of Energy and the Ad Council teamed up in July for a national consumer education campaign that includes messaging like “Save Money, Save Date Night” and viral-bound videos of a couple throwing all their worldly possessions down a cliff to cement the point that wasting energy is like wasting (in spectacular fashion) money, it was at least a refreshing take on an historically dull issue.

In addition to sharper messaging, new technology is doing its part too to improve energy efficiency. The Enterprise Energy Management (EEM) market (essentially, software that helps business use energy smarter) is expected to rocket from a projected $0.7 billion in 2010 to $3.6 billion by 2015. And just this week, high-profile EEM startup C3 – which already boasts the likes of PG&E, Siemens and GE Energy as its clients and Condoleezza Rice as a board member – unveiled its services and ambition to be the global leader in energy management software . Meanwhile, LEDs are making significant headway in becoming the “light bulb of the future” as advances in technology push LED efficiency past CFLs (and even farther past incandescents), while casting a more pleasant light to boot. The limiting factor in their uptake has always been price, but now a 40-watt equivalent LED lightbulb has dropped 55% in the 16 months through June to a global average of $24, while prices descended even further in countries like Japan ($18) and India (as low as $13).

The third driver of energy efficiency – the economics – is clearly a factor in the previous examples and a significant motive in its own right, as the prospects for a double-dip recession intensify.

However, sustained progress may require more. In an effort to curb carbon emissions and rising energy costs, China – in line with its most recent master economic planning document to improve energy efficiency – plans to set a national cap on the amount of energy that can be produced. While mandates have proven to be effective means for energy conservation, there are not many countries that can emulate the Chinese model, given its centrally-planned economy. Enter Japan, the most inspiring case study of cutting energy use in recent memory. Japanese citizens have rallied around a national objective to conserve energy, driven by the fact that only 16 of its 54 nuclear reactors are generating electricity and there is continued public pressure to shutter the remaining 16. The government has established a national target of 15% reduction in energy consumption between 9am and 8pm each day. Through a combination of the mandate, personal and organizational ingenuity and national pride, the target is not only being achieved, but exceeded.

Japan, of course, faces a unique situation and there are justifiable doubts of the nation’s stamina to sacrifice once a sense of “normal” returns. Still, they’ve shown the world a blueprint. In addition to being financially savvy, environmentally friendly and technologically advanced, energy efficiency can (and should) demonstrate something more: a way to come together and collectively solve problems.

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