Traditionally, gas and electricity have merely been seen as ‘essential services.’ However, with the rise of global warming, the issue of sustainability has become more pressing. Clean air, safe drinking water, sufficient food and secure shelter are being threatened by climate change, affecting health’s social and environmental determinants. Nations worldwide have committed to reducing greenhouse gas emissions through improving infrastructure, food and energy consumption choices. As a result, the energy landscape has become ever-changing with increased focus on general energy efficiency.
Many oil and gas companies have undertaken an increasing number of initiatives to decrease energy consumption and carbonization through environmental impact reporting and optimization projects. In the best interests of return on asset (ROA), a fair balance between energy generation and consumption must be accounted for during the early design stage. For instance, an accurately estimated amount of consumed energy against its generated level on premise is one of the important factors impacting business investment.
Minimizing energy waste during the processing of these energies, namely Process Energy Optimization, can efficiently reduce the cost and carbonization. To deliver those sustainability commitments, both private and public sectors have taken a variety of divergent pathways. Electronic products with higher energy star rating have been steadily replacing those less energy proficient or without the label of energy star rating. Additionally, the Victorian government has funded $10.92 million in the Neighborhood Battery Initiative (NBI) which supports the decarbonization of Victoria’s electricity system to tackle climate change1. Similarly, the federal government subsidized installation of small-scale renewable energy systems including rooftop solar, solar water heaters and heat pumps through the Small-scale Renewable Energy Scheme (SRES) which produced over 23% of Australia’s clean energy, 6.5% of the total electricity nationally in 20202.
Conversely, one of the common challenges is the intensive capital characteristic of low-carbon electricity generation including renewable energy, nuclear power and carbon capture and storage. As a result, countries with higher capital costs often need to levy additional tax on carbon emissions, to achieve the same level of decarbonization.
The power of data
While these challenges represent increased costs for Energy production and sales, precise data and information management allows companies to accurately assess costs and defray them as part of their operations. In addition, operators can be presented with real-time information on energy economics and inculcating accountability through integrated power and process systems. Optimized energy management that improves process efficiency by minimizing the total energy cost per output unit becomes increasingly necessary.
Armed with accurate data analysis, appropriate changes can be made in real-world applications. Studies have shown that approximately up to 25% of energy consumption can be reduced for a typical office building, by applying low-cost measures and over 45% by following deeper retrofit measures. Wastewater upgrade projects can decrease up to 50% of the total facility energy consumption. Similarly, nearly 50% of energy expenses can be reduced by lighting retrofit projects with the new state-of-the-art technologies, compared to conventional lighting technologies3.
Next, the discussion of current and future trends will expand on how revolution of utility market through efficiency, diversification and technological innovation.
Queenie is an experienced consultant in operations and digital transformation through process/journey design, ERP enhancements, robotic process automation and IT delivery management.