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A wide range of benefts impending regulations. It answers concerns from
the board of directors on improving the resilience
and a “must” of the company. It addresses future needs of
customers. And, it strengthens company culture by
Most manufacturing executives think of energy eff- enhancing energy sustainability. Of course, energy
ciency only in terms of cost savings. They scrap effciency cannot be achieved through a onetime
old, energy-guzzling equipment and think they improvement. Instead, it needs a holistic and
did a good job. In truth, they did only half the job, ongoing initiative that gets institutionalized within
because energy effciency offers much more. It the company—much like quality management,
can reduce non-energy costs, for example, create with which it shares many goals.
new business opportunities, signifcantly improve
the company’s image for all stake-holders and
help companies stay competitive and attractive Substantial direct
to customers (fgure 1). In order to reach its full and indirect savings
potential, an energy-effciency program must cover
the whole value chain, from sourcing to selling. Energy is one of the few remaining opportunities
A complete energy-effciency program combines to reduce costs in manufacturing. Energy
several aspects. It is a preemptive move to meet accounts for about 5% of costs for an average
manufacturing company, more in energy-intensive
industries. An energy-effciency program can save
between 10% and 30% of those energy costs
within three years. Indirect savings from reduced
maintenance, materials, waste and risk increase
the benefts, combining to effectively cut direct
energy costs by about half. Tax reductions and
government incentives boost the savings further in
many countries. Most savings come from adapting
equipment and processes. In production, typical
effciency measures include more effective motors,
drives, boilers, furnaces, pumps, compressors,
and ventilation and heating systems. Energy
recovery systems can help reduce demand. On-
site generation can also reduce costs, and, in
some places, manufacturers can sell power back
Fig. 1 – There are many re- to the grid when they produce more energy than
asons to care about energy they use. A plan to use energy fexibly, reducing
effciency (Source: Bain & usage during peak times, saves even more.
Company) Bain’s calculations show that the average


















Fig. 2 – Typical manufactu-
ring companies (*) can impro-
ve their proft margins by 2%
within three years. Percenta-
ge of net uncme (overaged
over three years) (Source:
US Department of Energy;
Energy Tax Advisory Case
Studies;.Lawrence Berkely
National Laboratory; Bain (*) Estimation for industrial companies, where direct energy costs account for ~5% of total costs
analysis)


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