Verónica Castro-AllendeEnergy Efficiency in Industrial Processes ( EEIP ) has been conducting research for more than ten years, including through EU-funded Innovation Action initiatives, to improve European industrial energy efficiency.
Our main finding is that although energy efficiency is “common sense,” it does not always occur spontaneously, especially for those who use professional and business energy.
The market for energy efficiency is lacking. It frequently feels like a Freeware task of constantly pushing the boulder of innovation up the hill of market viability.
The Hill: Market viability
There are a number of interconnected issues that contribute to the absence of a dynamic market for professional energy efficiency.
Companies frequently encounter considerable obstacles to investing in energy efficiency measures because of the high upfront costs associated with installing new technologies and upgrading equipment.
Additionally, one of the main long-term obstacles to decarbonizing Western manufacturing businesses is skill and workforce shortages.
Additionally, investment is further discouraged by the lack of precise metrics to assess energy efficiency improvements ( benchmarks ) and the uncertainty surrounding long-term energy prices.
The stumbling block of innovation: Pioneering Innovation Radar Methodologies to Navigate Market Challenges
The initial steps have been made. With the creation of the Market Creation Potential Indicator, the Joint Research Center of the European Commission has made a major advancement in the context of Innovation Radar methodologies. It has the ability to be a valuable asset in navigating difficult market conditions, encouraging growth and lasting investments, and fostering a more adaptable and powerful EU economy.
We think that each project should have a thorough understanding of the market and be market-focused. This tenet should guide replication strategies throughout all EU-funded projects. Replication should n’t just be about showcasing concepts and outcomes.
Actions are never made on the basis of inspiring information and great ideas. Collaboration can be used to counteract the need for research funding between numerous actors, frequently comprising” commercial” competitors ( many of whom are non-profit ).
One method is to put more emphasis on shared objectives or benefits that are already present in program calls and application processes, such as addressing common problems by utilizing complementary expertise or making use of references to existing new work in related fields.
Also, incentives like greater competition, cost-sharing opportunities, or improved reputations gained from joint replication efforts can encourage collaboration. Over ten different projects were gathered at the CINEA-organized thematic workshop that focused on replication in the clean energy transition within business sectors ( 20 April 2023 ).
Facilitation and moderation were provided by EEIP, which demonstrated a remarkable example of collaboration among project consortiums.
In the end, distinct project consortiums can help mitigate the hostile effects of competition for upcoming projects by focusing on the synergies and long-term benefits of energy efficiency.
Just when market opportunities are properly created and mobilized can innovation become a success. Promoting the market perspective of novel energy efficiency developments obviously would increase the value of project investments and outcomes.
Fostering Cooperative Efforts to Develop Markets: Cultivating Collaboration for Market Growth in Energy Efficiency
Actors who collaborate can just create and propel the energy efficiency market. Everyone would be a part of this, from businesspeople to academic institutions and industry associations. An efficient framework should be established through regulatory and International funding initiatives to enable this collaboration to flourish.
Collaboration is now a key component of commercial energy efficiency. Behind the factory gates, there are very few opportunities. The best way to go about connecting with different energy users is frequently the best way to go. An excellent illustration of this is Industrial Symbiosis.
In a company where energy efficiency is common, professional symbiosis does the same in a resource- and energy-connected circular economy.
Examples of replication building on the pre-existing interactions of various sectors and energy users are found in EU-funded projects like EENOVA, which examines the connections of value chains in optimising energy efficiency innovations in the food industry.
Working together and learning from one another between research, factories, and business enablers is a much-needed springboard for energizing potential energy efficiency markets.
